Century Aluminum records $649.2M in Q1 2026 net sales, up 2.4%, despite Iceland shipment decline

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Century Aluminum entered 2026 with an improved earnings, but beneath the headline numbers, the quarter reflected two contrasting trends - stronger aluminium pricing and asset-sale gains on one side, and operational disruption in Iceland weighing on shipments on the other.

The company reported net sales of USD 649.2 million in the first quarter of 2026, marking a 2.4 per cent increase from USD 633.7 million in Q4 2025. However, aluminium shipments fell 12.4 per cent quarter-on-quarter to 122,865 tonnes from 140,257 tonnes, largely reflecting the full-quarter impact of the Grundartangi Line 2 equipment failure in Iceland.

Despite the lower shipment volumes, Century’s profitability improved sharply. Net income attributable to the company climbed to USD 337.5 million in Q1 2026 from just USD 1.8 million in the previous quarter. The jump was primarily supported by a one-time gain of USD 287.9 million from the sale of the Hawesville smelter, alongside USD 33 million in insurance proceeds linked to the Iceland equipment failure. Also, London Metal Exchange aluminium prices and stronger regional premiums supported earnings growth, although rising power and raw material costs partially offset the gains.

Company’s gross profit slipped 2.3 per cent to USD 530.4 million as of March 31, 2026, from USD 543.1 million as of March 31, 2025.

Adjusted net income attributable to Century reached USD 170.7 million, up 33.2 per cent sequentially from USD 128.2 million in Q4 2025.

Adjusted earnings per common share rose 30.4 per cent quarter-on-quarter to USD 1.63 in Q1 2026, while adjusted EBITDA attributable to Century increased 35.6 per cent to USD 231.4 million from USD 170.6 million in Q42 025. The company attributed the EBITDA growth to stronger realised metal prices, a favourable sales mix and improved operating costs.

First-quarter results were also affected by USD 166.8 million in net exceptional items. These included USD 48.1 million in unrealised losses on derivative instruments, USD 60 million related to the Iceland equipment failure, USD 13.3 million in emergency energy charges at Mt. Holly caused by severe winter weather, USD 9.4 million in share-based compensation costs, USD 7.5 million in Mt. Holly expansion expenses, USD 5.9 million tied to Hurricane Melissa’s impact on Jamalco operations and a USD 3.3 million Hawesville inventory write-down.

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Iceland shipments slump while US operations strengthen

Century’s operating data showed a widening regional divide during the quarter. In the United States, primary aluminium shipments edged up 1.9 per cent quarter-on-quarter to 93,668 tonnes from 91,885 tonnes in Q4 2025. Sales from US operations rose 19.7 per cent sequentially to USD 494.3 million, compared with USD 413.1 million in the prior quarter.

Iceland operations, however, saw a steep decline. Shipments dropped 39.6 per cent quarter-on-quarter to 29,197 tonnes from 48,372 tonnes, while sales fell 36.9 per cent to USD 87.3 million from USD 138.3 million, reflecting the disruption caused by the Grundartangi Line 2 outage.

On a year-on-year basis, Century’s total primary aluminium shipments declined 27.2 per cent to 122,865 tonnes from 168,672 tonnes in Q1 2025. Even so, total sales increased 11 per cent to USD 581.6 million from USD 523.9 million in Q1 2025, supported by higher realised aluminium prices and stronger regional premiums.

Century said it has received USD 83 million in insurance proceeds so far related to the Iceland equipment failure. During the quarter, the company also initiated the expansion of the final 90 pots at Mt. Holly and restarted Line 2 at Grundartangi in April 2026.

Q2 2026 outlook

Looking ahead, Century expects second-quarter 2026 adjusted EBITDA to range between USD 315 million and USD 335 million, supported mainly by higher realised LME aluminium prices, stronger regional premiums and continued progress at the Mt. Holly expansion project.

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