Kaiser Aluminium, a US-based company specialising in the manufacturing and sale of semi-fabricated speciality aluminium products, has released its quarterly financial report for the period ending June 30, 2025. The report highlights the company's continued focus on delivering high-performance aluminium solutions across aerospace, automotive and industrial sectors, reinforcing its position as a key supplier in high-value downstream markets.
Image source: kaiseraluminium.com
According to the financial updates revealed, Kaiser Aluminium’s Q2 earnings stood at USD 1.21 per share for the quarter, significantly surpassing the Zacks Consensus Estimate of USD 0.49 per share. This marks a substantial year-on-year increase of 86.15 per cent compared to earnings of USD 0.65 per share in the same quarter of 2024.
According to projections from three analysts, the mean estimate for the company's earnings per share was USD 0.77 for this quarter. In comparison, Wall Street expectations ranged from USD 0.49 to USD 1.04, highlighting the company's strong performance against market forecasts.
This quarterly report reflects an earnings surprise of +146.94 per cent. In the previous quarter, expectations were set at USD 0.53 per share. However, Kaiser Aluminium reported actual earnings of USD 1.44 per share, resulting in a notable earnings surprise of +171.7 per cent.
For Q2 2025, Kaiser Aluminium also reported revenue of USD 823.10 million, up by 6.4 per cent compared to USD 773.4 million in the same period last year. The reported figure surpassed the consensus estimate by 4.07 per cent, marking the second time in the past four quarters that the company has exceeded revenue expectations. For the same quarter, the company's conversion revenue stood at USD 374 million.
During the quarter, Kaiser Aluminium's share price increased by 15.7 per cent, contributing to a 34.5 per cent gain in the first half of 2025, outpacing the S&P 500's rise of 7.3 per cent over the same period.
Currently, the average analyst rating for the company's shares stands at "Hold," with a recommendation breakdown of one "Strong Buy" or "Buy," two "Hold" and no ratings of "Sell" or "Strong Sell." In comparison, the average consensus recommendation for aluminium peer companies is rated as "Buy." The Wall Street median for the 12-month price target for the firm is USD 74, representing a fall of 24.9 per cent from the closing price of USD 92.43.
Keith A. Harvey, Chairman, President and Chief Executive Officer, Kaiser Aluminium, stated, "Our second quarter results exceeded our expectations, driven by continued strength in the underlying business fundamentals and favourable metal tailwinds. This performance enabled us to sustain margin levels above 19 per cent for the first half of 2025 and as a result, we are raising our full year 2025 Adjusted EBITDA outlook. We are making meaningful progress on our strategic growth investments, which will be evident in our profitability as we enter 2026."
By end-market application, Kaiser Aluminium recorded varied performance across its segments in Q2 2025. In the Aero/High Strength (HS) Products segment, shipments totalled 59.9 million pounds, generating net sales of USD 227.9 million. The Packaging segment led in volume, with shipments reaching 141.1 million pounds and net sales amounting to USD 340.9 million.
General Engineering Products saw shipments of 63.4 million pounds, contributing to net sales of USD 185.4 million. Meanwhile, the Automotive Extrusions segment recorded shipments of 24.0 million pounds, resulting in net sales of USD 68.9 million.
In the first half of 2025, Kaiser Aluminium reported an adjusted EBITDA of USD 141 million. The company strategically allocated its cash resources, funding USD 53 million in working capital, USD 82 million in capital investments and USD 22 million in interest payments. Additionally, USD 26 million was returned to shareholders through quarterly dividends.
As of June 30, 2025, Kaiser Aluminium's total liquidity stood at USD 538 million, comprising USD 13 million in cash and cash equivalents and USD 525 million in available borrowing capacity under its Revolving Credit Facility. Furthermore, on July 15, 2025, the company declared a quarterly cash dividend of USD 0.77 per share, payable on August 15, 2025, to shareholders of record as of July 25, 2025.
For the full year 2025, Kaiser Aluminium maintains its outlook for a year-over-year increase of 5 to 10 per cent in Conversion Revenue. Additionally, the company has raised its guidance for Adjusted EBITDA, now expecting an improvement of 10 to 15 per cent compared to the previous year.
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