Century Aluminum gets a production boost as Iceland smelter restarts, lifting Q3 performance

Century Aluminum Company reported stronger financial results for the third quarter of 2026, as the restart of Line 2 at its Grundartangi facility in Iceland helped increase aluminium shipments, net sales and profitability. The production recovery, combined with favourable realised metal prices, supported a rise in net income to USD 302.6 million, compared with USD 249.3 million in the second quarter.

The company's net sales reached USD 961.2 million during the quarter ended September 30, 2026, marking a sequential increase of USD 209.1 million. Aluminium shipments also climbed to 173,483 tonnes from 130,632 tonnes in the preceding quarter, reflecting the contribution of Line 2 returning to near-full production during the reporting period.

The improvement in earnings was primarily driven by higher shipments and favourable realised metal prices. However, the gains were partly offset by a lower contribution from insurance proceeds related to equipment failure in Iceland and unfavourable power price realisation amid extreme hot weather during the quarter.

Adjusted earnings reflect operational improvements

Century Aluminum reported an adjusted net income of USD 271.6 million for Q3 2026, compared with USD 257.3 million in the previous quarter. Adjusted EBITDA attributable to the company increased to USD 331.6 million from USD 326.9 million.

The improvement in adjusted EBITDA was mainly supported by favourable sales volume and product mix, alongside stronger realised metal prices. These gains were partially offset by higher operating expenses and unfavourable power price realisation.

The quarter also included USD 31 million in net exceptional items. These primarily comprised USD 34.5 million in unrealised gains on derivative instruments, net of tax, and a USD 12.7 million gain on insurance proceeds, net of tax, partially offset by USD 15.1 million related to equipment failures in Iceland, net of tax.

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Century Aluminum maintains a strong liquidity position

Century Aluminum reported total liquidity of USD 1.16 billion as of September 30, 2026. This included USD 713 million in cash and cash equivalents, USD 41.6 million in restricted cash and USD 406.9 million in combined borrowing availability.

Outlook for Q4 2026 

Looking ahead, Century Aluminum expects adjusted EBITDA to range between USD 275 million and USD 300 million in the fourth quarter of 2026.

The third-quarter performance highlights the contribution of the Grundartangi restart to the company's production and financial results. Higher shipments and favourable metal prices supported stronger earnings, although operating expenses and weather-related power costs remained areas of pressure.

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