Kaiser Aluminum Reports 6% Revenue Growth to $823.1 Million in Q2 2025

Kaiser Aluminum Corporation reported a notable increase in financial performance for the second quarter of 2025, with net sales reaching $823.1 million, up from $773.4 million in the same quarter of the previous year. This represents a 6% increase year-over-year, driven by a 9% rise in the average realized sales price per pound, despite an 8.4 million pound decrease in shipment volume. For the first half of 2025, net sales totaled $1.6 billion, compared to $1.5 billion in the first half of 2024, marking a 6% increase. The company’s net income for the quarter was $23.2 million, or $1.41 per diluted share, compared to $18.9 million, or $1.15 per diluted share, in the prior year.

The company experienced a rise in costs, with cost of goods sold (COGS) for the quarter totaling $722.8 million, which accounted for 88% of net sales, compared to 87% in the previous year. The increase in COGS was primarily attributed to a higher hedged cost of alloyed metal, which rose by 11% due to increased metal prices. Additionally, manufacturing costs increased due to the startup of a new coating line at the Warrick facility. Despite these challenges, Kaiser Aluminum's operating income improved to $38 million for the quarter, up from $36.2 million a year earlier.

Strategically, Kaiser Aluminum has initiated customer qualifications and shipments from its newly completed fourth coating line at the Warrick facility, which is expected to enhance its product offerings in the packaging market. The company continues to focus on operational efficiency and product quality, with plans for capital expenditures in 2025 estimated between $120 million and $130 million. This investment is aimed at supporting demand growth and enhancing manufacturing capabilities.

As of June 30, 2025, Kaiser Aluminum reported total assets of $2.5 billion, an increase from $2.4 billion at the end of 2024. The company’s total liabilities also rose to $1.7 billion, up from $1.7 billion at the end of the previous year. The increase in liabilities was primarily due to higher accounts payable and long-term debt. The company maintained a strong liquidity position, with cash and cash equivalents of $13.1 million and borrowing availability under its revolving credit facility of $524.6 million.

Looking ahead, Kaiser Aluminum remains optimistic about its growth prospects, driven by strong demand in its key markets, including aerospace, automotive, and packaging. The company is focused on leveraging its operational strengths and strategic investments to enhance its competitive position. However, it acknowledges potential risks related to fluctuating metal prices and market conditions, which could impact future performance.