Century Aluminum Company (CENX) has reported higher costs and expenses in 2025. Cost of sales increased by 10.9 per cent compared to the previous year. Selling, general and administrative expenses rose by about 41 per cent. Other operating costs also increased by more than 100 per cent.

The main cost pressures came from key inputs like alumina, electricity and carbon products. These made up over 84 per cent of total production costs. Changes in energy and raw material prices have also added pressure. Equipment issues at the Grundartangi plant in Iceland affected the cost efficiency.

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Despite this, the company has worked to improve performance. It focused on cost control, efficiency and higher-value aluminium products. This helped support profits. The gross margin increased to 10.1 per cent in 2025.

Sales of premium aluminium products, which are priced higher, supported margins. The company is also investing in better production and improving capacity use. These steps are expected to support future performance.

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Other aluminium companies are facing similar issues. Alcoa reported a 6 per cent rise in cost of sales and a 9 per cent increase in administrative expenses in 2025. Constellium also saw cost pressures, with the cost of sales rising by 13.5 per cent and administrative costs by 6.1 per cent.

Century Aluminum’s share price has increased by about 25 per cent in the past three months, while the wider industry declined about 4.4 per cent.

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CENX is trading at a lower valuation than the industry, with a price-to-earnings ratio of 7.4 compared to 15.58. It has a Value Score of C. Estimates for its 2026 earnings have gone up in the last 60 days. The stock is rated Zacks Rank #1 (Strong Buy).

Century Aluminum is a Chicago-based global producer of primary aluminium and alumina with smelting operations in the US and Iceland.