Kaiser Aluminum Corp (KALU)
NASDAQ:KALU
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Earnings Data
Report Date
Jul 29, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.19Last Year’s EPS
1.21Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call reflects a strong and improving operational performance with record EBITDA, material revenue and EPS gains, improved leverage, solid free cash flow, and upgraded full-year guidance. Key end markets (aerospace, packaging, general engineering) exhibit clear demand recovery and mix improvement at Warrick supports higher conversion pricing. Near-term challenges include automotive weakness, the decision to run the new coating line at ~80% while optimizing quality, external converter execution issues, and reliance on metal lag/scrap spread tailwinds that could reverse if metal prices decline. On balance, positives materially outweigh the negatives with management highlighting sustained execution and balance-sheet strength.Company Guidance
Record EBITDA and Margin Expansion
Adjusted EBITDA of $129 million in Q1 2026, up $55 million year-over-year; Adjusted EBITDA margin improved to 31.8% of conversion revenue, a 1,200 basis-point improvement versus prior year; company reported another record for EBITDA and EBITDA margins.
Conversion Revenue Growth
Conversion revenue of $404 million in Q1 2026, up approximately $41 million or 11% year-over-year, driven by higher shipments, pricing, and mix shifts.
Significant Net Income and EPS Improvement
Reported net income of $63 million ($3.71 diluted EPS) vs. $22 million ($1.31 diluted EPS) in prior-year quarter; adjusted net income $63 million ($3.74 adjusted diluted EPS) vs. $24 million ($1.44 adjusted diluted EPS) prior-year — material earnings improvement.
Strong Free Cash Flow and Liquidity
Generated first-quarter free cash flow of $69 million (operating cash flow less CapEx); total cash approximately $30 million and $566 million borrowing availability on revolver, yielding total liquidity of roughly $596 million.
Improved Leverage Profile
Net debt leverage ratio improved to 2.8x at quarter end from 3.4x at year-end, moving closer to target range of 2.0x–2.5x; no debt maturities until 2030 and fixed senior note interest of $54 million annually.
End-Market Momentum and Upgraded 2026 Outlook
Management raised full-year outlook: expects full-year conversion revenue growth of 10%–15% and EBITDA growth of 20%–30% driven by stronger demand, firmer pricing, and mix improvement.
Packaging and Warrick Mix Shift
Packaging conversion revenue $157 million, up $30 million or ~24% year-over-year with shipments up ~13%; ongoing ramp of fourth coating line (target ~80% utilization) and conversion price per pound up ~50% since 2021 acquisition, supporting higher conversion revenue per pound.
Aerospace & High Strength Strengthening
Aerospace and high strength conversion revenue $131 million, up $10 million or ~8% year-over-year with shipments up ~9%; company now expects aerospace shipments to grow 15%–20% and conversion revenue to grow 10%–15% for 2026.
Operational Performance Gains
Management cites ~850 basis points of margin improvement year-over-year attributable to operational performance (excluding metal lag gains); overall operational and start-up disruptions largely behind the company following recent capital investments.
Metal Tailwind and Scrap Spread Benefits
First-quarter metal lag gain approximately $36 million and improved scrap spreads contributed meaningfully to results; of $34 million operating cost improvement, ~$15 million was attributed to metal lag gain.
Strong Capital Allocation Discipline and Dividend
Q1 CapEx $19 million; full-year CapEx guidance $120–130 million; Board declared quarterly dividend of $0.77 per share, continuing 19 consecutive years of dividend payments.
KALU Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KALU Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 22, 2026 | $162.27 | $164.07 | +1.11% |
Feb 18, 2026 | $138.73 | $126.46 | -8.85% |
Oct 14, 2025 | $78.35 | $78.50 | +0.20% |
Jul 23, 2025 | $90.11 | $85.72 | -4.88% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kaiser Aluminum Corp (KALU) report earnings?
Kaiser Aluminum Corp (KALU) is schdueled to report earning on Jul 29, 2026, After Close (Confirmed).
What is Kaiser Aluminum Corp (KALU) earnings time?
Kaiser Aluminum Corp (KALU) earnings time is at Jul 29, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is KALU EPS forecast?
KALU EPS forecast for the fiscal quarter 2026 (Q2) is 2.19.