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Investing.com -- Kaiser Aluminum Corporation (NASDAQ:KALU) shares surged 10.4% in after-hours trading Wednesday after the specialty aluminum products manufacturer reported third quarter adjusted earnings that significantly exceeded analyst expectations, driven by favorable metal pricing and operational improvements.
The company posted adjusted earnings per share of $1.86 for the third quarter, more than double the analyst consensus estimate of $0.89. Revenue came in at $844 million, slightly below the consensus estimate of $850 million but up 12.8% from $748 million in the same quarter last year. The revenue growth occurred despite an 8% year-over-year decrease in shipment volume, primarily due to a planned partial outage at the company’s Trentwood facility.
"We are proud to deliver our fourth consecutive quarter of results above our expectations, prompting an upward revision to our full-year 2025 Adjusted EBITDA outlook," said Keith A. Harvey, Chairman, President and Chief Executive Officer. "While our third quarter results included approximately $20 million in non-recurring startup costs tied to our major investments at the Trentwood and Warrick facilities, favorable metal tailwinds offset these costs."
Kaiser’s adjusted EBITDA for the quarter reached $81 million with a margin of 23.2%, compared to $46 million and 12.7% in the prior year period. The company benefited from approximately $28 million in favorable metal price lag during the quarter.
The company raised its full-year 2025 outlook, now expecting adjusted EBITDA to improve 20% to 25% YoY, citing strengthening underlying performance and rising metal prices. Kaiser also improved its net debt leverage ratio to 3.6x from 4.3x at the end of 2024.
Kaiser Aluminum manufactures semi-fabricated specialty aluminum products for aerospace, packaging, general engineering, and automotive applications.
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