Kaiser Aluminum reports Q4 adjusted EPS 60c, consensus (12c)

Reports Q4 revenue $722M, consensus $718.74M. “Despite its challenges, 2023 was a foundational year for Kaiser as we laid the groundwork necessary to capture the vast growth opportunities ahead. Our focused execution led us to end the year in a solid position with full year net income of $47 million and adjusted EBITDA increasing 48% over 2022 to approximately $210 million,” said Keith Harvey, president and CEO. “Aerospace products’ demand remained very strong with net sales and conversion revenue each setting a new record high. While reduced demand for general engineering plate products persisted, our unique ability to flex our capacity at our Trentwood facility to support strengthening aerospace demand further contributed to our performance. After five consecutive quarters, destocking activity for general engineering long products stabilized during the fourth quarter. In our packaging operations, while destocking stabilized for beverage products in the latter half of 2023, it persisted for food products, which we expect will abate by the end of the first quarter of 2024. Our new roll coat installation, to convert approximately 25% of our existing packaging capacity to higher valued coated products, is progressing well and is on time for completion and customer qualifications by the end of the year. Importantly, we have ample resources, including nearly $600 million in liquidity and a strong capital expenditures budget, to implement our growth initiatives as we strive to drive sustainable long-term growth.”