10-Q · July 23, 2026
Kaiser Aluminum delivered exceptional Q2 growth, with net sales up 52.7% year over year to $1.2566B and GAAP diluted EPS rising to $5.72 from $1.41. Margins and cash generation improved as higher shipments, pricing/mix,…
Earnings analysis · 10-Q
KALU earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Kaiser Aluminum reported $1.214 billion of Q3 revenue, up approximately 43.8% year over year, with Conversion Revenue rising 25% to $439.1 million. However, diluted EPS fell to $1.89 from $2.38 in the prior-year quarter…
Read full summary
Kaiser Aluminum reported $1.214 billion of Q3 revenue, up approximately 43.8% year over year, with Conversion Revenue rising 25% to $439.1 million. However, diluted EPS fell to $1.89 from $2.38 in the prior-year quarter and $5.72 in Q2 2026, indicating significant sequential earnings pressure. Management maintained 2026 guidance but expects Adjusted EBITDA growth toward the lower end of the 45%-55% range, while commodity and energy sensitivities increased materially.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.89
- Segment
- Conversion Revenue: $439.1 million, up 25% year over year
What stood out
-
Revenue remained well above prior year
Revenue was $1.214 billion, up approximately 43.8% from $844 million in Q3 2025, although down approximately 3.6% from $1.26 billion in Q2 2026.
-
Conversion Revenue grew 25%
Conversion Revenue increased 25% year over year to $439.1 million, supported by stronger aerospace and packaging demand.
-
EPS declined sharply
Diluted EPS was $1.89, down from $2.38 in Q3 2025 and $5.72 in Q2 2026, representing declines of approximately 20.6% and 67.0%, respectively.
-
EBITDA outlook maintained but skewed lower
The company maintained 2026 Adjusted EBITDA growth guidance of 45%-55% versus 2025, while expecting performance toward the lower end of the range.
-
Repurchase capacity remained available
At September 30, 2026, $93.1 million remained available under the stock repurchase authorization, providing continued capital-allocation flexibility.
What to watch
-
Higher aluminum-price sensitivity
Aluminum-price exposure increased: a $0.10 per pound decrease in LME aluminum prices would have produced an estimated $7.7 million unrealized mark-to-market loss at September 30, 2026, versus $2.5 million at December 31, 2025.
-
Material aluminum exposure remains
The company had derivative contracts covering approximately 59.6 million pounds of aluminum shipments for the remainder of 2026, plus 17.4 million pounds for 2027, leaving results exposed to metal-price and hedge-accounting volatility.
-
Energy-hedge volatility increased
Energy exposure increased: a $1.00 per mmbtu decrease in natural-gas prices would have resulted in an estimated $4.7 million unrealized loss at September 30, 2026, versus $3.1 million at December 31, 2025; electricity derivatives also represented $1.9 million of sensitivity.
-
Operational and metal headwinds
Management expects 2026 Adjusted EBITDA growth toward the lower end of the 45%-55% range because of planned operational outages, execution performance, customer year-end inventory alignment and metal-related headwinds.
-
Currency sensitivity increased
The 10-Q states there were no material changes in risk factors since the 2025 Form 10-K; however, foreign-currency sensitivity increased to an estimated $0.7 million loss for a 10% exchange-rate decrease, from $0.1 million at December 31, 2025.
Management's outlook
The company maintained its 2026 Conversion Revenue growth outlook of 10%-15%, with growth expected at the high end, and maintained Adjusted EBITDA growth guidance of 45%-55% versus 2025, although results are expected toward the lower end of the range. The 10-Q does not provide numeric revenue or EPS guidance.
Earlier filings 4
10-Q · April 23, 2026
Kaiser Aluminum reported record Q1 net sales of $1,106.8 million (up $329.4 million or 42% vs Q1 2025) with Conversion Revenue of $404.4 million and net income of $62.5 million (diluted EPS $3.71). Adjusted EBITDA was…
10-K · February 19, 2026
Kaiser Aluminum (KALU) emphasizes a focused strategy on high‑barrier, engineered end markets (Aero/HS, Packaging, GE Products, Automotive Extrusions) supported by proprietary KaiserSelect® products, KPS continuous…
10-Q · April 24, 2025
Kaiser Aluminum reported quarter net sales of $777.4 million and diluted EPS of $1.31 for the quarter ended March 31, 2025, both improving versus the prior-year quarter. Operating income rose to $41.4 million and the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.