Kaiser Aluminum Reports $21.6 Million Net Income and $777.4 Million Net Sales in Q1 2025

Kaiser Aluminum Corporation reported a net income of $21.6 million for the first quarter of 2025, reflecting an increase from $18.2 million in the same period last year. The company's net sales rose to $777.4 million, up from $737.5 million, driven by a higher average realized sales price per pound, which increased by 11%. However, shipment volumes decreased by 5%, totaling approximately 275.6 million pounds. The cost of goods sold (COGS) also increased to $673.4 million, representing 87% of net sales, compared to 88% in the prior year.

The company made a significant accounting change effective January 1, 2025, transitioning from a Last-In, First-Out (LIFO) inventory valuation method to a Weighted Average Cost (WAC) method. This change aims to enhance the comparability of operational results across periods. As a result, prior financial statements have been adjusted to reflect this new methodology. The restructuring costs for the quarter were recorded at $1.8 million, a notable increase from $0.1 million in the previous year, as part of ongoing efforts to streamline operations.

Kaiser Aluminum's operational metrics showed a mixed performance across its end markets. The Aero/HS Products segment saw a decline in net sales to $214.7 million from $220.5 million, while the GE Products segment experienced a 19% increase in sales to $181.6 million. The Packaging segment also reported a 5% increase in sales, totaling $314.2 million. The company employed approximately 3,900 people as of March 31, 2025, maintaining a stable workforce compared to previous periods.

Looking ahead, Kaiser Aluminum anticipates continued focus on capital investments, with planned expenditures of approximately $120 million to $130 million in 2025. These investments are aimed at enhancing manufacturing capabilities and operational efficiencies. The company also declared a quarterly cash dividend of $0.77 per share, amounting to approximately $12.9 million, reflecting its commitment to returning value to shareholders while managing its liquidity effectively. As of March 31, 2025, Kaiser reported total liquidity of $576.7 million, including cash and cash equivalents of $21.3 million and borrowing availability under its Revolving Credit Facility.