Kaiser Aluminum Q3 sales slightly miss estimates
Overview
US specialty aluminum producer's Q3 sales rose but slightly missed analyst expectations
Adjusted EPS and adjusted net income for Q3 missed analyst expectations
Company cited strong demand and improved conversion revenue, but faced metal price lag and operational headwinds
Outlook
Kaiser Aluminum maintains full-year 2026 outlook for Conversion Revenue growth at high end of 10%-15% range
Company expects 2026 Adjusted EBITDA growth toward lower end of 45%-55% range versus 2025
Result Drivers
STRONG DEMAND - Co said demand remained strong in aerospace/high strength and general engineering end markets
HIGHER SHIPMENTS - Co attributed increased shipments to added capacity at Trentwood facility and recovery from prior year partial outage
METAL PRICE LAG - Co said unfavorable metal price lag compared to prior year reduced EBITDA growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | $1.21 bln | $1.21 bln (4 Analysts) |
Q3 Adjusted EPS | Miss | $1.89 | $2.36 (4 Analysts) |
Q3 EPS | $1.84 | ||
Q3 Adjusted Net Income | Miss | $32 mln | $37.72 mln (4 Analysts) |
Q3 Net Income | $31 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aluminum peer group is "buy."
Wall Street's median 12-month price target for Kaiser Aluminum Corporation is $181.00, about 18.7% above its October 20 closing price of $152.54
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 19 three months ago
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)