UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 1-09447
KAISER ALUMINUM CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
94-3030279
(State of incorporation)
(I.R.S. Employer Identification No.)
1550 West McEwen Drive, Suite 500
Franklin, Tennessee
37067
(Address of principal executive offices)
(Zip Code)
(629) 252-7040
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which registered
Common stock, par value $0.01 per share
KALU
Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of April 20, 2026, there were 16,340,606 shares of common stock of the registrant outstanding.
COMMONLY USED OR DEFINED TERMS
Term
Definition
Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization adjusted for non-run-rate items
Aero/HS Products
2000, 7000 and certain 6000 series alloys products used in the Aerospace, Defense, Space and other end markets requiring high strength applications
Alloy(s)
Certain metals such as copper, zinc, magnesium, manganese and silicon added to primary aluminum to obtain certain attributes
AOCI
Accumulated other comprehensive income (loss)
ASC
Accounting Standards Codification
ASU
Accounting Standards Update
Automotive Extrusions
6000 series extruded aluminum products used in automotive applications
COGS
Cost of products sold, excluding depreciation and amortization
Form 10-Q
This Quarterly Report on Form 10-Q
GAAP
United States Generally Accepted Accounting Principles
GE Products
6000 series alloys products used in the General Engineering end markets
LME
London Metal Exchange
Metal Price Lag
Management’s estimate of the financial impact resulting from the timing difference between aluminum prices included within Hedged Cost of Alloyed Metal and the weighted average market price for aluminum during the period, based on MWTP (defined below), multiplied by our shipment volume during the periods. Metal Price Lag will generally increase our earnings in times of rising primary aluminum prices and decrease our earnings in times of declining primary aluminum prices.
MWTP
Midwest Transaction Price is equal to the LME aluminum price plus a Midwest premium
Newark
Kaiser Aluminum manufacturing facility located in Heath, Ohio, a suburb of Newark, Ohio
OPEB
Other Post Employment Benefits
Packaging
3000 and 5000 series alloys products used in the beverage and food packaging end markets
Revolving Credit Facility
Revolving credit facility with Wells Fargo Bank, National Association, as administrative agent, and the other financial institutions party thereto
Salaried VEBA
Salaried Voluntary Employees' Beneficiary Association
SEC
U.S. Securities and Exchange Commission
Senior Notes
Collectively, the fixed-rate unsecured notes we issued during the years ended December 31, 2019, 2021, and 2025 at the following interest rates and aggregate principal amounts, respectively:(i) 4.625% and $500.0 million (issued in 2019; redeemed in full on November 6, 2025);(ii) 4.50% and $550.0 million (issued in 2021 and maturing in 2031); and(iii) 5.875% and $500.0 million (issued in 2025 and maturing in 2034)
SOFR
Secured Overnight Financing Rate
Trentwood
Kaiser Aluminum manufacturing facility located in Spokane Valley, Washington
Warrick
Kaiser Aluminum manufacturing facility located in Newburgh, Indiana, in the county of Warrick
TABLE OF CONTENTS
PART I
Item 1. Financial Statements
1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
21
Item 3. Quantitative and Qualitative Disclosures About Market Risk
29
Item 4. Controls and Procedures
30
PART II
Item 1. Legal Proceedings
31
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
32
SIGNATURES
33
2
KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES
PART I – FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of March 31, 2026
As of December 31, 2025
(In millions of dollars, except share and per share amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
30.0
7.0
Receivables, net
528.6
423.3
Contract assets
75.9
63.4
Inventories
799.0
725.2
Prepaid expenses and other current assets
53.9
42.6
Total current assets
1,487.4
1,261.5
Property, plant and equipment, net
1,139.5
1,145.2
Operating lease assets
24.6
22.4
Deferred tax assets, net
—
0.2
Intangible assets, net
39.9
41.0
Goodwill
18.8
Other assets
79.7
75.7
Total assets
2,789.9
2,564.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
494.1
274.6
Accrued salaries, wages and related expenses
51.5
61.3
Other accrued liabilities
56.3
91.3
Total current liabilities
601.9
427.2
Long-term portion of operating lease liabilities
22.5
21.7
Pension and OPEB
72.9
73.4
Deferred tax liabilities
93.5
75.4
Long-term liabilities
84.0
81.4
Long-term debt, net
1,037.8
1,059.6
Total liabilities
1,912.6
1,738.7
Commitments and contingencies – Note 6
Stockholders’ equity:
Preferred stock, 5,000,000 shares authorized at both March 31, 2026 and December 31, 2025; no shares were issued and outstanding at March 31, 2026 and December 31, 2025
Common stock, par value $0.01, 90,000,000 shares authorized at both March 31, 2026 and December 31, 2025; 23,175,410 shares issued and 16,340,124 shares outstanding at March 31, 2026; 23,045,729 shares issued and 16,210,443 shares outstanding at December 31, 2025
Additional paid in capital
1,129.6
1,132.5
Retained earnings
191.4
142.5
Treasury stock, at cost, 6,835,286 shares at both March 31, 2026 and December 31, 2025
(475.9
)
32.0
26.8
Total stockholders’ equity
877.3
826.1
Total liabilities and stockholders' equity
The accompanying notes to interim consolidated financial statements are an integral part of these statements.
STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
Quarter Ended March 31,
2026
2025
Net sales
1,106.8
777.4
Costs and expenses:
943.2
673.4
Depreciation and amortization
30.4
Selling, general, administrative, research and development
35.4
30.8
Restructuring costs
1.8
Total costs and expenses
1,009.0
736.0
Operating income
97.8
41.4
Other expense:
Interest expense
(14.4
(11.2
Other expense, net – Note 8
(1.0
(1.4
Income before income taxes
82.4
28.8
Income tax provision
(19.9
(7.2
Net income
62.5
21.6
Net income per common share:
Basic
3.85
1.34
Diluted
3.71
1.31
Weighted-average number of common shares outstanding (in thousands):
16,248
16,116
16,844
16,399
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED)
(In millions of dollars)
Other comprehensive income, net of tax – Note 7:
Defined benefit plans
0.1
Cash flow hedges
5.0
2.5
Other comprehensive income, net of tax
5.2
2.6
Comprehensive income
67.7
24.2
3
STATEMENTS OF CONSOLIDATED STOCKHOLDERS’ EQUITY (UNAUDITED)
Quarter Ended March 31, 2026
CommonSharesOutstanding1
CommonStock
AdditionalPaid in Capital
RetainedEarnings
TreasuryStock
Total
BALANCE, December 31, 2025
16,210,443
Common shares issued (including impacts from Long-Term Incentive programs)
199,737
Cancellation of shares to cover tax withholdings upon common shares issued
(70,056
(8.8
Cash dividends declared2
(13.6
Amortization of unearned equity compensation
5.9
BALANCE, March 31, 2026
16,340,124
4
STATEMENTS OF CONSOLIDATED STOCKHOLDERS’ EQUITY CONTINUED (UNAUDITED)
Quarter Ended March 31, 2025
CommonSharesOutstanding
BALANCE, December 31, 2024
16,095,898
1,117.0
81.3
20.5
743.1
84,115
(25,637
(1.8
Cash dividends declared1
(12.9
4.2
BALANCE, March 31, 2025
16,154,376
1,119.4
90.0
23.1
756.8
5
STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
Cash flows from operating activities1:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant and equipment
29.3
28.9
Amortization of definite-lived intangible assets
1.1
Amortization of debt issuance costs
0.7
0.5
Deferred income taxes
16.8
6.4
Non-cash equity compensation
Loss on disposition of property, plant and equipment
0.3
Non-cash postretirement and postemployment defined benefit plan cost
2.1
2.3
Changes in operating assets and liabilities:
Receivables
(105.3
(48.0
(12.5
5.5
(73.8
29.5
(1.6
217.6
20.3
Accrued liabilities
(46.2
(14.3
Annual variable cash contributions to Salaried VEBA
(2.9
(0.7
Long-term assets and liabilities, net
(6.1
(0.5
Net cash provided by operating activities
87.9
57.0
Cash flows from investing activities1:
Capital expenditures
(19.4
(38.2
Net cash used in investing activities
Cash flows from financing activities1:
Borrowings under the Revolving Credit Facility
71.5
42.5
Repayment of borrowings under the Revolving Credit Facility
(93.8
(42.5
Repayment of finance lease
Cash dividends and dividend equivalents paid
Net cash used in financing activities
(45.4
(15.4
Net increase in cash, cash equivalents and restricted cash during the period
3.4
Cash, cash equivalents and restricted cash at beginning of period
26.9
37.9
Cash, cash equivalents and restricted cash at end of period
50.0
41.3
6
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
NOTES INDEX
Note 1
Basis of Presentation and Recent Accounting Pronouncements
8
Note 2
Supplemental Balance Sheet Information
10
Note 3
Employee Benefits
11
Note 4
Derivatives, Hedging Programs and Other Financial Instruments
12
Note 5
Debt and Credit Facility
14
Note 6
Commitments and Contingencies
15
Note 7
Accumulated Other Comprehensive Income
16
Note 8
Other Expense, Net
17
Note 9
Income Tax Matters
Note 10
Earnings Per Share
Note 11
Supplemental Cash Flow Information
18
Note 12
Business, Product, and Geographical Area Information
Note 13
Subsequent Events
20
7
Notes Index
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED
1. Basis of Presentation and Recent Accounting Pronouncements
This Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Unless the context otherwise requires, references in these notes to interim consolidated financial statements - unaudited to “Kaiser,” “we,” “us,” “our,” “the Company” and “our Company” refer collectively to Kaiser Aluminum Corporation and its subsidiaries.
Principles of Consolidation and Basis of Presentation. The accompanying unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with GAAP and the rules and regulations of the SEC applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management’s opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. We have reclassified certain items in prior periods to conform to current classifications. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2026 fiscal year. The financial information as of December 31, 2025 is derived from our audited consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of our consolidated financial position and results of operations.
Adoption of New Accounting Pronouncements
Accounting for Internal-Use Software. In September 2025, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2025-06 (“ASU 2025-06”), Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which removes all references to software development stages so that the guidance is neutral to different software development methods. We early adopted ASU 2025-06 as of January 1, 2026 using the prospective transition approach. The adoption of ASU 2025-06 did not have a material impact on our consolidated financial statements.
Accounting Pronouncements Issued But Not Yet Adopted
Disclosure Improvements. In October 2023, the FASB issued ASU No. 2023-06 (“ASU 2023-06”), Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The guidance amends GAAP to reflect updates and simplifications to certain disclosure requirements referred to the FASB by the SEC. The amendments in ASU 2023-06 will become effective on the date which the SEC’s removal of the related disclosure becomes effective. If by June 30, 2027, the SEC does not remove the related disclosure, the pending amendment will be removed from ASC 2023-06 and it will not be effective. Adoption of ASU 2023-06 is expected to modify the disclosure and presentation requirements only and is not expected to have a material impact on our consolidated financial statements.
Disaggregation of Income Statement Expenses. In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses. The guidance requires additional, disaggregated disclosure about certain income statement expense line items. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted, and is required to be applied prospectively with the option of retrospective application. We plan to adopt the provisions of ASU 2024-03 prospectively in the fourth quarter of fiscal 2027 and continue to evaluate the disclosure requirements related to the new standard.
Hedge Accounting Improvements. In November 2025, the FASB issued ASU No. 2025-09 (“ASU 2025-09”), Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. The guidance introduces targeted refinements intended to improve the operability of hedge accounting and better align financial reporting with risk management activities, including greater flexibility in hedge designation and clarifications for certain instruments. ASU 2025-09 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the impact of this pronouncement on our consolidated financial statements.
Government Grants. In December 2025, the FASB issued ASU No. 2025-10 (“ASU 2025-10”), Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, to establish authoritative guidance on the accounting for government grants received by business entities. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, with early adoption permitted, and is required to be applied using a modified prospective, modified retrospective, or full retrospective transition method. We are currently evaluating the impact of this pronouncement on our consolidated financial statements.
Interim Reporting Narrow-Scope Improvements. In December 2025, the FASB issued ASU No. 2025-11 (“ASU 2025-11”), Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies the scope, form and content, and required disclosures in interim financial statements prepared under GAAP. ASU 2025-11 enhances guidance for entities that issue condensed interim statements and reinstates a principles-based requirement to disclose material events since the last annual period. ASU 2025-11 is effective for interim periods in fiscal years beginning after December 15, 2027, with early adoption permitted and retrospective application optional. We are currently evaluating the impact of this standard on our consolidated financial statements.
9
2. Supplemental Balance Sheet Information
Receivables, Net
Accounts receivable
529.2
423.9
Allowance for doubtful receivables
(0.6
Finished products
134.0
156.1
Work-in-process
316.6
316.7
Raw materials
332.1
236.2
Operating supplies
16.3
16.2
Property, Plant and Equipment, Net
Land and improvements
44.1
38.2
Buildings and leasehold improvements
303.4
302.6
Machinery and equipment
1,594.3
1,586.7
Construction in progress
74.8
66.7
Property, plant and equipment, gross
2,016.6
1,994.2
Accumulated depreciation and amortization
(877.2
(849.1
Land held for sale
Other Assets
Restricted cash – Note 11
20.0
19.9
Long-term replacement parts
32.3
28.5
Net assets of Salaried VEBA
9.9
9.7
Other
17.5
17.6
.
Other Accrued Liabilities
Uncleared cash disbursements
1.2
45.8
Accrued income taxes and other taxes payable
15.0
7.8
Accrued annual contribution to Salaried VEBA
2.9
Accrued interest
10.8
6.9
Current operating lease liabilities
4.8
Current finance lease liabilities
Current deferred compensation plan liabilities – Note 3
1.0
Other – Note 4
19.0
19.6
Long-Term Liabilities
Workers' compensation accrual
25.5
26.0
Long-term environmental accrual – Note 6
17.3
17.4
Other long-term liabilities
41.2
38.0
3. Employee Benefits
Deferred Compensation Plan
Assets of our deferred compensation plan are included in Other assets. Such assets, representing diversified investment funds in registered investment companies, are classified within Level 1 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices. These assets are accounted for as equity investments, with changes in fair value recorded within Other expense, net (see Note 8). Offsetting liabilities relating to the deferred compensation plan are included in Other accrued liabilities and Long-term liabilities.
Short-Term Incentive Plans
As of March 31, 2026, we had a liability of $11.8 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments under the 2026 short-term incentive plans.
Postretirement and Postemployment Benefit Plans
The following table presents the total expense related to all postretirement and postemployment benefit plans (in millions of dollars):
Defined contribution plans1
6.0
Deferred compensation plan2
Multiemployer pension plans1
1.5
Net periodic postretirement and postemployment benefit cost relating to defined benefit plans3
10.0
Components of Net Periodic Postretirement and Postemployment Benefit Cost. The following tables present the components of Net periodic postretirement and postemployment benefit cost relating to our defined benefit plans (in millions of dollars):
Pension Plans
Service cost
0.8
0.9
Interest cost
0.4
Expected return on plan assets
(0.4
Amortization of prior service cost1
Amortization of net actuarial gain
(0.3
(0.1
Total net periodic postretirement and postemployment benefit cost
0.6
4. Derivatives, Hedging Programs and Other Financial Instruments
Overview
We utilize derivative instruments to manage exposure to: (i) metal price risk related to aluminum and certain alloys used as raw material for our fabrication operations; (ii) energy price risk related to natural gas and electricity used in our production processes; and (iii) foreign currency exchange rate risk related to certain equipment and service agreements. We do not use derivative financial instruments for trading or other speculative purposes. Hedging transactions are executed centrally and are overseen by a committee (“Hedging Committee”) composed of key operations and finance personnel from the management team. Management reviews the scope of the Hedging Committee’s activities with our Board of Directors.
We are exposed to counterparty credit risk on all of our derivative instruments. Our counterparties are major investment-grade financial institutions or trading companies, and our hedging transactions are governed by negotiated International Swaps and Derivatives Association Master Agreements, which generally require collateral to be posted by our counterparties above specified credit thresholds, which may adjust up or down based on changes in counterparty credit ratings. As a result, we believe the risk of loss is remote and contained. The aggregate fair value of our derivative instruments that were in a net liability position was $1.6 million and $0.1 million at March 31, 2026 and December 31, 2025, respectively, and we had no collateral posted as of those dates.
In addition, our firm-price customer sales commitments create incremental customer credit risk related to metal price movements. Under certain circumstances, we mitigate this risk by periodically requiring cash collateral to be posted by our customers, which we classify as deferred revenue and include as a component of Other accrued liabilities. We had no cash collateral posted by our customers at both March 31, 2026 and December 31, 2025.
The above described derivative instruments are typically designated as cash flow hedges. Unrealized gains and losses associated with our cash flow hedges are deferred in Other comprehensive income, net of tax, and reclassified to COGS when such hedges settle or when it is probable that the original forecasted transactions will not occur by the end of the originally specified time period. See Note 7 for the total amount of gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments that was reported in AOCI, as well as the related reclassifications into earnings and tax effects. Cumulative gains and losses related to cash flow hedges are reclassified out of AOCI and recorded within COGS when the associated hedged commodity purchases impact earnings.
From time to time, we enter into commodity and foreign currency forward contracts that are not designated as hedging instruments to mitigate certain short‑term impacts, as identified. The gain or loss on these commodity and foreign currency derivatives is recognized within COGS and Other expense, net, respectively. As of March 31, 2026 and December 31, 2025, we had no outstanding non-designated derivative hedge positions.
Notional Amount of Derivative Contracts
The following table summarizes our derivative positions at March 31, 2026:
Aluminum
Maturity Period
Notional Amount of Contracts (mmlbs)
Fixed price purchase contracts for LME
April 2026 through July 2027
72.5
Fixed price sale contracts for LME
April 2026 through April 2027
10.1
Fixed price purchase contracts for MWTP
72.6
Fixed price sale contracts for MWTP
10.2
Alloying Metals
Fixed price purchase contracts
April 2026 through December 2027
6.2
Natural Gas
Notional Amount of Contracts (mmbtu)
April 2026 through December 2028
3,450,000
Electricity
Notional Amount of Contracts (Mwh)
316,228
Euro
Notional Amount of Contracts (in millions of Euros)
Fixed price forward purchase contracts
€
(Gain) Loss on Derivative Contracts
The following table summarizes the amount of (gain) loss on derivative contracts recorded within our Statements of Consolidated Income in COGS (in millions of dollars):
Total of income and expense line items presented in our Statements of Consolidated Income in which the effects of hedges are recorded:
(Gain) loss recognized in our Statements of Consolidated Income related to cash flow hedges:
(8.5
(5.2
Natural gas
Foreign exchange contracts
Total gain recognized in our Statements of Consolidated Income related to cash flow hedges
(9.3
(5.5
Fair Values of Derivative Contracts
The fair values of our derivative contracts are based upon trades in liquid markets. Valuation model inputs can be verified, and valuation techniques do not involve significant judgment. The fair values of such derivatives are classified within Level 2 of the fair value hierarchy.
All of our derivative contracts with counterparties are subject to enforceable master netting arrangements. We reflect the fair value of our derivative contracts on a gross basis on our Consolidated Balance Sheets. The following table presents the fair value of our derivative financial instruments (in millions of dollars):
Assets
Liabilities
Net Amount
Cash Flow Hedges:
Aluminum –
8.7
8.6
(0.8
3.8
3.7
Alloying Metals – Fixed price purchase contracts
1.9
2.4
Natural gas – Fixed price purchase contracts
(2.3
(1.3
Electricity – Fixed price purchase contracts
(3.4
(2.4
Foreign currency – Fixed price forward contracts
19.3
(7.1
12.2
9.6
(3.8
5.8
13
The following table presents the total amounts of derivative assets and liabilities on our Consolidated Balance Sheets (in millions of dollars):
Derivative assets:
18.0
8.3
1.3
Total derivative assets
Derivative liabilities:
(5.0
(3.1
(2.1
Total derivative liabilities
Fair Values of Other Financial Instruments
All Other Financial Assets and Liabilities. We believe that the fair values of our financial assets and liabilities (accounts receivable, contract assets, current assets, accounts payable, and accrued liabilities) approximate their respective fair values due to their short maturities and nominal credit risk.
5. Debt and Credit Facility
At March 31, 2026 and December 31, 2025, we had outstanding fixed-rate unsecured Senior Notes with varying maturity dates. The stated interest rates and aggregate principal amounts of such Senior Notes were, respectively: (i) 4.50% and $550.0 million (“4.50% Senior Notes”) and (ii) 5.875% and $500.0 million (“5.875% Senior Notes”). Our Senior Notes do not require us to make any mandatory redemptions or sinking fund payments. The following table summarizes key details of our Senior Notes:
Outstanding (in millions of dollars)
Issuance Date
Maturity
Effective Interest Rate
4.50% Senior Notes
May 2021
June 2031
4.7%
550.0
5.875% Senior Notes
November 2025
March 2034
6.1%
500.0
Total debt
1,050.0
Unamortized issuance costs
(12.2
(12.7
Total carrying amount
1,037.3
The following table presents the fair value of our outstanding Senior Notes, which are Level 1 liabilities (in millions of dollars):
519.6
531.4
490.9
501.6
In October 2019, we entered into a Revolving Credit Facility. Joining us as borrowers under the Revolving Credit Facility are four of our wholly owned domestic operating subsidiaries: (i) Kaiser Aluminum Investments Company; (ii) Kaiser Aluminum Fabricated Products, LLC; (iii) Kaiser Aluminum Washington, LLC; and (iv) Kaiser Aluminum Warrick, LLC.
As amended in October 2025, the Revolving Credit Facility is set to mature in October 2030 and contains a maximum commitment amount of $575.0 million (of which up to a maximum of $50.0 million may be utilized for letters of credit). The facility includes an accordion feature that allows for an increase in total revolving commitments of up to $200.0 million, plus an additional amount for a first-in last-out tranche, subject to lender approval and other customary conditions. The amount we can borrow under the Revolving Credit Facility is determined by the value of our eligible accounts receivable and inventory and certain other assets, which serve as collateral for the Revolving Credit Facility. Borrowings under the amended Revolving Credit Facility bear interest at a rate equal to either a base rate or the SOFR, plus, in each case, a specified variable percentage between 125 - 150 basis points for SOFR loans (or 25 - 50 basis points for base rate loans) determined by reference to the then-remaining borrowing availability under the Revolving Credit Facility and, in certain instances, a fixed margin. Outstanding borrowings under the Revolving Credit Facility are reported within Long-term debt, net, on our Consolidated Balance Sheets. We had no outstanding borrowings under the Revolving Credit Facility as of March 31, 2026 and $22.3 million of outstanding borrowings under the Revolving Credit Facility as of December 31, 2025.
The following table summarizes availability and usage of our Revolving Credit Facility as determined by a borrowing base calculated as of March 31, 2026 (in millions of dollars):
Revolving Credit Facility borrowing commitment
575.0
Borrowing base availability
Less: Outstanding borrowings under Revolving Credit Facility
Less: Outstanding letters of credit under Revolving Credit Facility
(8.7
Remaining borrowing availability
566.3
Interest Expense
The following table presents interest expense relating to our Senior Notes and Revolving Credit Facility (in millions of dollars):
Senior Notes interest expense, including debt issuance cost amortization
14.0
12.4
Revolving Credit Facility interest expense, including commitment fees and finance cost amortization
Interest expense on finance lease liabilities
Interest expense capitalized as construction in progress
(2.0
Total interest expense
14.4
11.2
6. Commitments and Contingencies
Commitments. We have a variety of financial commitments, including purchase agreements, forward foreign exchange and forward sales contracts, indebtedness and letters of credit (see Note 4 and Note 5).
Environmental Contingencies. We are subject to several environmental laws and regulations, potential fines or penalties assessed for alleged breaches of such laws and regulations, and potential claims based upon such laws and regulations. We are also subject to legacy environmental contingencies related to activities that occurred at our operating facilities prior to July 6, 2006, which represent the majority of our environmental accruals of $17.7 million as of March 31, 2026. This accrual represents our undiscounted estimate of costs reasonably expected to be incurred based on current laws and regulations, available facts, existing technologies, and our assessment of the likely remediation actions to be taken.
Based on approved and proposed remediation action plans for the various facilities, we expect that the implementation and ongoing monitoring could occur over a period of 30 or more years. As additional facts are developed, feasibility studies are completed, remediation plans are modified, necessary regulatory approvals for the implementation of remediation are obtained, alternative technologies are developed and/or other factors change, there may be revisions to management’s estimates, and actual costs may exceed the current environmental accruals by up to $14.2 million. Changes to our estimates may occur within the next 12 months as new information becomes available.
Other Contingencies. We are party to various lawsuits, claims, investigations and administrative proceedings that arise in connection with past and current operations. We evaluate such matters on a case-by-case basis and our policy is to vigorously contest any such claims we believe are without merit. We accrue for a legal liability when it is both probable that a liability has been incurred and the amount of the loss is reasonably estimable. Quarterly, in addition to when changes in facts and circumstances require it, we review and adjust these accruals to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. While uncertainties are inherent in the final outcome of such matters and it is presently impossible to determine the actual cost that may ultimately be incurred, we believe that we have sufficiently accrued for such matters and that the ultimate resolution of pending matters will not have a material impact on our consolidated financial position, operating results or liquidity.
7. Accumulated Other Comprehensive Income
The following table presents the changes in the accumulated balances for each component of AOCI (in millions of dollars):
Defined Benefit Plans:
Beginning balance
19.1
Actuarial loss arising during the period
Amortization of net actuarial gain1
Less: income tax expense2
Ending balance
22.7
19.2
4.3
1.4
Unrealized gain on cash flow hedges
15.8
Less: income tax expense
(3.7
Net unrealized gain on cash flow hedges
12.1
6.7
Reclassification of unrealized gain upon settlement of cash flow hedges
Less: income tax benefit2
2.2
Net gain reclassified from AOCI to Net income
(4.2
Ending balance3
9.3
3.9
Total AOCI ending balance
8. Other Expense, Net
The following table presents the components of Other expense, net (in millions of dollars):
Interest income
Net periodic postretirement and postemployment benefit cost
(1.2
Unrealized loss on equity securities
(0.2
All other, net
Other expense, net
Supply Chain Financing. We are party to several supply chain financing arrangements, in which we may sell certain of our customers’ trade accounts receivable to such customers’ financial institutions without recourse. During the quarter March 31, 2026 and March 31, 2025, we sold trade accounts receivable totaling $295.2 million and $270.0 million, respectively, related to these supply chain financing arrangements, of which our customers’ financial institutions applied discount fees totaling $6.5 million and $5.6 million, respectively. To the extent discount fees related to the sale of trade accounts receivable under supply chain financing arrangements are not reimbursed by our customers, they are included in Other expense, net. As of March 31, 2026, we had been and/or expected to be substantially reimbursed by our customers for these discount fees, in accordance with the underlying sales agreements.
9. Income Tax Matters
The following table presents the income tax provision by region (in millions of dollars):
Domestic
(19.3
(6.6
Foreign
The income tax provision for the quarters ended March 31, 2026 and March 31, 2025 was $19.9 million and $7.2 million, respectively, reflecting an effective tax rate of 24% and 25%, respectively. There was no material difference between the effective tax rate and the blended statutory tax rate for the quarters ended March 31, 2026 and 2025.
Our gross unrecognized benefits relating to uncertain tax positions were $7.7 million and $7.4 million at March 31, 2026 and December 31, 2025, respectively. If recognized, these amounts would be reflected in our income tax provision and affect our effective tax rate.
10. Earnings Per Share
Basic net income per share is computed by dividing distributed and undistributed net income allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes non-vested share-based payment awards. Basic and diluted net income per share was calculated under the two-class method for the quarters ended March 31, 2026 and 2025.
The following table sets forth the computation of basic and diluted net income per share (in millions of dollars, except share and per share amounts):
Numerator:
Net income available to common shareholders1
Denominator – Weighted-average common shares outstanding (in thousands):
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares2
596
283
Net income per common share, Basic:
Net income per common share, Diluted:
11. Supplemental Cash Flow Information
Interest paid
Non-cash investing and financing activities (included in Accounts payable):
Unpaid purchases of property and equipment
22.1
Supplemental lease disclosures:
Operating lease liabilities arising from obtaining operating lease assets
3.1
Cash paid for amounts included in the measurement of operating lease liabilities
1.7
Finance lease liabilities arising from obtaining finance lease assets
As of March 31,
Components of cash, cash equivalents and restricted cash:
21.3
Restricted cash included in Other assets1
Total cash, cash equivalents and restricted cash presented on our Statements of Consolidated Cash Flows
12. Business, Product, and Geographical Area Information
Our primary line of business is the production of semi-fabricated specialty aluminum mill products, such as plate and sheet, bare and coated coils, and extruded and drawn products, primarily used in our Aero/HS Products, Packaging, GE Products, and Automotive
Extrusions end markets. We operate production facilities in the United States and Canada. We have one operating and reportable segment. Our determination that we operate as a single segment is consistent with the financial information regularly viewed by the chief operating decision maker (“CODM”) to evaluate performance and make decisions regarding resource allocation. The CODM uses Net income to measure segment profitability in deciding whether to reinvest profits into the segment or into other parts of the entity, such as for acquisitions or to pay dividends.
The following table presents the significant segment expenses that are provided to the CODM (in millions of dollars):
Less:
Hedged cost of alloyed metal1
702.4
414.2
Manufacturing costs2
162.2
181.9
Plant overhead3
47.3
46.1
Freight costs
22.3
20.7
Other cost of products sold4
9.0
10.5
Research and development costs
Employee costs5
26.7
Other selling, general and administrative costs6
8.1
8.0
7.2
The CODM does not review asset and capital expenditure information by reportable operating segment as such information is presented to the CODM on a consolidated basis.
19
The following table presents Net sales by end market applications and by timing of control transfer (in millions of dollars):
Net sales:
286.8
214.7
498.4
314.2
240.3
181.6
66.9
Total net sales
Timing of revenue recognition:
Products transferred at a point in time
853.2
590.8
Products transferred over time
253.6
186.6
The following table presents geographic information for income taxes paid (in millions of dollars):
Income taxes paid:
Total income taxes paid
13. Subsequent Events
Dividend Declaration. On April 13, 2026, we announced that our Board of Directors declared a quarterly cash dividend of $0.77 per common share. As such, we expect to pay approximately $12.8 million (including dividend equivalents) on or about May 15, 2026 to stockholders of record and the holders of certain restricted stock units at the close of business on April 24, 2026.
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains statements which constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear throughout this Report and can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “estimates,” “will,” “should,” “plans” or “anticipates,” or the negative of the foregoing or other variations of comparable terminology, or by discussions of strategy. Readers are cautioned that any such forward‑looking statements are not guarantees of future performance and involve significant risks and uncertainties and that actual results may vary from those in the forward-looking statements as a result of various factors. These factors include: (i) the effectiveness of management’s strategies and decisions, including strategic investments, capital spending strategies, cost reduction initiatives, sourcing strategies, processes and countermeasures implemented to address operational and supply chain challenges and the execution of those strategies; (ii) the execution and timing of strategic investments; (iii) general economic and business conditions, including higher interest rates, the impact of geopolitical factors and governmental and other actions taken in response, tariffs, cyclicality, reshoring, sanctions and export controls, labor challenges, supply interruptions, energy price volatility, scrap availability and pricing, customer operation disruptions, including as a result of regulatory actions, customer inventory imbalances and supply chain issues, regional aluminum premium volatility, and other conditions that impact demand drivers in the Aero/HS Products, Packaging, GE Products, and Automotive Extrusions end markets we serve; (iv) our ability to participate in mature and anticipated new automotive programs expected to launch in the future and successfully launch new automotive programs, including electric vehicle platforms; (v) changes or shifts in defense spending due to competing national priorities; (vi) pricing, market conditions and our ability to effectively execute commercial and labor strategies, pass through cost increases, including the institution of surcharges, and flex costs in response to inflation, volatile commodity costs, regional aluminum premiums and energy prices, and changing economic conditions; (vii) developments in technology, including cybersecurity and artificial intelligence threats; (viii) the impact of our future earnings, cash flows, financial condition, capital requirements and other factors on our financial strength and flexibility; (ix) new or modified statutory or regulatory requirements, including evolving climate-related disclosure regimes, state-level climate programs, and packaging and recycled content laws; (x) the successful integration of acquired operations and technologies; (xi) the views of our stakeholders, including regulators and customers, regarding our sustainability goals and initiatives and the impact of factors outside of our control on such goals and initiatives, including potential greenwashing or consumer protection claims; and (xii) other factors discussed in Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2025, and in other filings we make with the SEC from time to time. No assurance can be given that these are all of the factors that could cause actual results to vary materially from the forward-looking statements. Readers are urged to consider these factors carefully in evaluating any forward-looking statements and are cautioned not to place undue reliance on such statements. We undertake no obligation to update or revise any forward-looking statements, except as required by law.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Part I, Item 1. “Financial Statements” of this Report and our consolidated financial statements and related notes included in Part II, Item 8. “Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2025.
Business Overview
We manufacture and sell semi-fabricated specialty aluminum mill products, including flat-rolled (plate, sheet, and coil), extruded (rod, bar, hollows, and shapes), drawn (rod, bar, pipe, tube, and wire), and certain cast aluminum products. We strategically focus our business on select end markets with demanding applications and high barriers to entry, where we believe we have sustainable competitive advantages that allow us to earn premium pricing and generate long-term profitable growth. The end market applications on which we have historically focused include: (i) Aero/HS Products; (ii) Packaging; (iii) GE Products; and (iv) Automotive Extrusions. These technically challenging applications leverage our core metallurgical and process technology capabilities to produce highly engineered mill products with differentiated characteristics that are required for the particular end uses.
Within the global market for flat-rolled aluminum mill products, our focus is on heat treat plate and sheet for applications that require higher strength and other desired product attributes that cannot be achieved by common alloy rolled products. The primary end market applications of flat-rolled heat treat plate and sheet, which are produced at Trentwood, are Aero/HS Products (which we sell globally) and GE Products (which we predominantly sell within North America). The primary end market application of bare and coated aluminum coil, which are produced at Warrick, is Packaging (which we sell in North America). Our Packaging products require demanding attributes and can be further processed to include coating and slitting depending on customer specifications.
In the areas of aluminum extrusions, we focus on demanding Aero/HS Products, GE Products, and Automotive Extrusions that require high strength, machinability, or other specialized attributes. Our 10 extrusion/drawing facilities, nine of which are in the United States and one of which is in Canada, primarily serve North American demand for aerospace, general engineering, and automotive applications. Additionally, we operate a facility in Columbia, New Jersey that focuses on multi-material advanced manufacturing methods and techniques, including multi-axis computer numerical control machining, additive manufacturing, welding and fabrication
for demanding aerospace and defense, high technology, general industrial, and automotive applications. We employed approximately 3,800 people at March 31, 2026.
We have long-standing relationships with our customers, which consist primarily of blue-chip companies, including leading aerospace and automotive manufacturers, tier one aerospace and automotive suppliers, beverage and food packaging manufacturers, and metal service centers. Approximately 70% of our shipments is sold direct to manufacturers or tier one suppliers and approximately 30% is sold to metal service centers. In our served markets, we seek to be the supplier of choice by pursuing “Best in Class” customer satisfaction driven by quality, availability, service and delivery performance. We believe we differentiate our product portfolio through our broad product offering and our KaiserSelect® products, which are engineered and manufactured to deliver enhanced product characteristics with improved consistency, so as to result in better performance, lower waste and, in many cases, lower production cost for our customers.
Non-GAAP Financial Measures
This information contains certain non-GAAP financial measures. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with US GAAP in the statements of income, balance sheets, or statements of cash flows of the company. We have provided a reconciliation of non-GAAP financial measures to the most directly comparable financial measure in the accompanying tables. We have also provided a discussion of the reasons we believe that presentation of the non-GAAP financial measures provides useful information to investors, as well as any additional ways in which we use the non-GAAP financial measures. The non-GAAP financial measures used in the following discussions are Conversion Revenue (defined as Net Sales less the Hedged Cost of Alloyed Metal, see below in “Metal Pricing Policies” discussion) and Adjusted EBITDA. These measures are presented because management uses this information to monitor and evaluate financial results and trends and believes this information to also be useful for investors.
In the discussion of operating results below, we refer to certain items as “non-run-rate items.” For purposes of such discussion, non-run-rate items are items that, while they may recur from period-to-period: (i) are particularly material to results; (ii) affect costs primarily as a result of external market factors; and (iii) may not recur in future periods if the same level of underlying performance were to occur. Non-run-rate items are part of our business and operating environment but are worthy of being highlighted for the benefit of readers of our financial statements. Our intent is to allow users of the financial statements to consider our results both in light of and separately from such items. For a reconciliation of Conversion Revenue to Net sales and Adjusted EBITDA to Net income, see below in “Results of Operations - Selected Operational and Financial Information.”
Metal Pricing Policies
A fundamental part of our business model is to remain neutral to the impact from fluctuations in the market price for aluminum and certain alloys, thereby earning profit predominantly from the conversion of aluminum into semi-fabricated mill products. We refer to this as “metal price neutrality.” We purchase primary, rolling ingot and scrap, or recycled, aluminum, our main raw material, and alloys at prices that fluctuate on a monthly basis, and our pricing policies generally allow us to pass the current month underlying index cost of aluminum and certain alloys through to our customers so that we remain neutral to metal pricing.
In order to allow users of our financial statements to consider the impact of aluminum and alloy cost on our Net sales, we disclose Net sales as well as Conversion Revenue, which is Net sales less the Hedged Cost of Alloyed Metal. As used in this discussion, “Hedged Cost of Alloyed Metal” is the cost of aluminum at the average MWTP plus the cost of alloying elements and any realized gains and/or losses on settled hedges related to the metal sold in the referenced period. The average MWTP of aluminum reflects the primary aluminum supply/demand dynamics in North America. For a reconciliation of Conversion Revenue to Net sales, see below in “Results of Operations - Selected Operational and Financial Information.”
Highlights for the quarter ended March 31, 2026:
22
Results of Operations
Consolidated Results of Operations
Net Sales. The following table sets forth, for the quarters ended March 31, 2026 and March 31, 2025, shipments (in millions of pounds) and Net sales (in millions of dollars) by end market applications and the respective fluctuations.
Shipments
Shipment Change
% Increase (Decrease)
Net sales Change
61.5
%
72.1
34
146.6
130.2
16.4
184.2
59
64.1
65.1
(2
%)
58.7
22.2
24
(8
294.4
275.6
329.4
42
The increase in Net sales reflected a $0.94 per pound (33%) increase in the average realized sales price and an 18.8 million pound (7%) increase in shipment volume.
COGS. COGS for the quarter ended March 31, 2026 totaled $943.2 million, or 85% of Net sales, compared to $673.4 million, or 87% of Net sales, for the quarter ended March 31, 2025. The total increase reflected the following (in millions of dollars):
Change
Hedged Cost of Alloyed Metal
288.2
70
Manufacturing costs
(19.7
(11
Plant overhead
1.6
Other cost of products sold
(1.5
(14
269.8
40
Of the $288.2 million increase in Hedged Cost of Alloyed Metal, $259.9 million was due to an increase in hedged metal prices and $28.3 million was due to an increase in shipment volume (see above in our “Net Sales” discussion for further details). The $19.7 million decrease in manufacturing costs was primarily due to favorable metal consumption and valuation impacts, partially offset by higher operating costs. The $1.6 million increase in in freight costs was due to both higher shipping rates and shipment volume. The $1.5 million decrease in other cost of products sold was primarily driven by a decrease in major maintenance costs. For a further discussion of the comparative results of operations for the quarters ended March 31, 2026 and March 31, 2025, see below in “Selected Operational and Financial Information.”
Selling, General, Administrative, Research and Development (“SG&A and R&D”). SG&A and R&D expense totaled $35.4 million and $30.8 million for the quarters ended March 31, 2026 and March 31, 2025, respectively. The increase in employee costs was primarily driven by higher incentive costs (in millions of dollars):
100
Employee costs
Other selling, general and administrative costs
4.6
Restructuring Costs. During the quarter ended March 31, 2025, we initiated a plan to reduce certain operating costs (the “2025 Restructuring Plan”). Restructuring costs of $1.8 million for the quarter ended March 31, 2025 represented severance and related benefits under the plan. Substantially all costs associated with the 2025 Restructuring Plan were incurred and expensed as of December 31, 2025. No restructuring costs were incurred during the quarter ended March 31, 2026.
23
Interest Expense. See Note 5 of Notes to Interim Consolidated Financial Statements included in this Report for a discussion of our debt and credit facilities that were in effect during the quarters ended March 31, 2026 and March 31, 2025 and interest expense capitalized as part of construction in progress.
Other Expense, Net. See Note 8 of Notes to Interim Consolidated Financial Statements included in this Report for details.
Income Tax Provision. See Note 9 of Notes to Interim Consolidated Financial Statements included in this Report for disclosure regarding our income tax provision.
Selected Operational and Financial Information
The following data should be read in conjunction with our consolidated financial statements and the notes thereto included in Part I, Item 1. “Financial Statements” of this Report. Interim results are not necessarily indicative of those for a full year.
The table below provides selected operational and financial information (in millions of dollars):
Non-run-rate items:
Environmental expenses1
Loss on disposition of operating property, plant and equipment
Total non-run-rate items
2.0
Adjusted EBITDA2
128.5
Adjusted EBITDA for the quarter ended March 31, 2026 was $55.1 million higher than Adjusted EBITDA for the quarter ended March 31, 2025. Adjusted EBITDA for the quarter ended March 31, 2026 was impacted by: (i) higher sales volume; (ii) improved product pricing; and (iii) favorable metal consumption and valuation impacts. This was partially offset by: (i) higher operating costs and (ii) higher employee and employee-related costs. See above in “Consolidated Results of Operations” for further details.
The following table provides our shipment and Conversion Revenue information (in millions of dollars, except shipments and Conversion Revenue per pound) by end market applications:
Aero/HS Products:
Shipments (mmlbs)
$ / lb
4.66
3.81
Less: Hedged Cost of Alloyed Metal
(156.3
(2.54
(94.2
(1.67
Conversion Revenue
130.5
2.12
120.5
2.14
Packaging:
3.40
2.41
(341.0
(2.33
(186.8
(1.43
157.4
1.07
127.4
0.98
GE Products:
3.75
2.79
(152.9
(2.39
(98.1
(1.51
87.4
1.36
83.5
1.28
Automotive Extrusions:
24.0
3.66
(52.2
(2.35
(35.1
(1.46
29.1
31.8
1.33
Total:
3.76
2.82
Less: Hedged Cost of Alloyed Metal1
(702.4
(414.2
(1.50
404.4
1.37
363.2
1.32
25
Liquidity and Capital Resources
Summary
The following table summarizes our liquidity (in millions of dollars):
Available cash and cash equivalents
Borrowing availability under Revolving Credit Facility, net of letters of credit1
540.2
Total liquidity
596.3
547.2
We place our cash in bank deposits with high credit quality financial institutions. See Note 11 of Notes to Interim Consolidated Financial Statements included in this Report for information regarding restricted cash at March 31, 2026.
We had no outstanding borrowings under the Revolving Credit Facility as of March 31, 2026. During the quarter, we repaid $93.8 million of borrowings, consisting of the full repayment of the $22.3 million outstanding balance as of December 31, 2025 and $71.5 million of borrowings incurred during the quarter ended March 31, 2026. See below in “Sources of Liquidity” for a further discussion of subsequent borrowing activity. See Note 5 of Notes to Interim Consolidated Financial Statements included in this Report.
Cash Flows
The following table summarizes our cash flows from operating, investing, and financing activities (in millions of dollars):
Total cash provided by (used in):
Operating activities
Investing activities
Financing activities
Cash provided by operating activities for the quarter ended March 31, 2026 reflected results of business activity described above in our “Consolidated Results of Operations” discussion, as well as the following working capital changes: (i) an increase in accounts payable of $217.6 million, primarily due to timing of payments and higher metal costs; (ii) an increase in receivables of $105.3 million, primarily due to increased metal prices; (iii) an increase in inventory of $73.8 million, primarily due to increased metal costs; (iv) a decrease in accrued liabilities of $46.2 million, primarily due to timing; and (v) an increase in contract assets of $12.5 million, primarily due to the timing of customer shipments.
Cash provided by operating activities for the quarter ended March 31, 2025 reflected results of business activity described above in our “Consolidated Results of Operations” discussion, as well as the following working capital changes: (i) an increase in receivables of $48.0 million, primarily due to increased metal prices; (ii) a decrease in accrued liabilities of $14.3 million, primarily due to timing; (iii) an increase in accounts payable of $20.3 million, primarily due to the timing of payments and higher metal costs; (iv) a decrease in inventory of $29.5 million, primarily due to our continued focus on inventory management; and (v) a decrease in contract assets of $5.5 million, primarily due to the timing of customer shipments.
See Statements of Consolidated Cash Flows included in this Report for further details on our cash flows from operating, investing, and financing activities for the quarters ended March 31, 2026 and 2025.
Sources of Liquidity
Our most significant sources of liquidity include available cash and cash equivalents, available credit under the Revolving Credit Facility, and funds generated from operations. We believe we have sufficient liquidity to fund our operations and meet our short-term and long-term obligations.
26
Our Revolving Credit Facility and outstanding Senior Notes have covenants that, we believe, allow us to operate our business with limited restrictions and significant flexibility for the foreseeable future. We do not believe that the covenants contained in the Revolving Credit Facility are reasonably likely to limit our ability to raise additional debt or equity to satisfy our foreseeable liquidity needs during the next 12 months, should we choose to do so, nor do we believe it is likely that during the next 12 months we will trigger the availability threshold that would require measuring and maintaining a fixed charge coverage ratio.
At April 20, 2026, we had no outstanding borrowings under the Revolving Credit Facility. See Note 9 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for a description of our Revolving Credit Facility.
We engage in certain customer-based supply chain financing programs to accelerate the receipt of payment for outstanding accounts receivable from certain customers. Costs of these programs are typically reimbursed to us by the customer. Receivables transferred under these customer-based supply chain financing programs generally meet the requirements to be accounted for as sales resulting in the derecognition of such receivables from our consolidated balance sheets. Receivables involved with these customer‑based supply chain finance programs for the quarter ended March 31, 2026 constituted approximately 27% of our Net sales. See Note 8 of Notes to Interim Consolidated Financial Statements included in this Report for further details with respect to these supply chain financing programs.
Material Cash Requirements
See Note 9 of Notes to Consolidated Financial Statements included in Part II, Item 8. “Financial Statements and Supplementary Data” in our Annual Report on Form 10-K for the year ended December 31, 2025 for mandatory principal and cash interest payments on the outstanding borrowings. We do not believe that covenants in the indentures governing the Senior Notes are reasonably likely to limit our ability to obtain additional debt or equity financing should we choose to do so during the next 12 months. Except as otherwise disclosed in this Report, there has been no material change in our material cash requirements from significant contractual obligations, commercial commitments, or off-balance sheet arrangements other than in the ordinary course of business since December 31, 2025.
Capital Expenditures and Investments
We strive to strengthen our competitive position across our end markets through strategic capital investment aimed at increasing our capacity and expanding our manufacturing capabilities. While some of our recent capital projects have focused on further enhancing manufacturing cost efficiency, improving product quality, and promoting operational security, a significant portion over the past several years related to our investment in a fourth coating line at Warrick to increase our capacity for higher margin coated aluminum material for packaging applications and the Trentwood modernization projects, which focused on equipment upgrades throughout the process flow to reduce conversion costs, increase efficiency, and further improve our competitive cost position on all products produced at Trentwood. A significant portion of the Trentwood investment also focused on modernizing legacy equipment and the process flow for heat-treated plate to achieve KaiserSelect® quality enhancements for these Aero/HS Products and GE Products. These improvements have allowed us to gain incremental manufacturing capacity to enable future sales growth.
Our capital investment plans remain focused on supporting demand growth through capacity expansion, sustaining our operations, enhancing product quality and increasing operating efficiencies. We anticipate total capital spending in 2026 of approximately $120.0 million to $130.0 million. We expect to continue to deploy capital thoughtfully so that investment decisions align with demand expectations in order to maximize the earnings potential of the business and maintain financial strength and flexibility.
Capital investments will be funded using cash generated from operations, available cash and cash equivalents, borrowings under the Revolving Credit Facility and/or other third-party financing arrangements. The level of anticipated capital expenditures may be adjusted from time to time depending on our business plans, our price outlook for fabricated aluminum products, our ability to maintain adequate liquidity, and other factors. No assurance can be provided as to the timing of any such expenditures or the operational benefits expected therefrom.
Dividends
We have consistently paid a quarterly cash dividend since the second quarter of 2007 to holders of our common stock, including holders of restricted stock. Nevertheless, as in the past, the future declaration and payment of dividends, if any, will be at the discretion of our Board of Directors and will depend on a number of factors, including our financial and operating results, including the availability of surplus and/or net profits, liquidity position, anticipated cash requirements and contractual restrictions under our Revolving Credit Facility, the indentures for our Senior Notes or other indebtedness we may incur in the future. We can give no assurance that dividends will be declared and paid in the future.
27
We also pay quarterly dividend equivalents to the holders of certain restricted stock units. Holders of performance shares are not paid a quarterly dividend equivalent, but instead are entitled to receive, in connection with the issuance of underlying shares of common stock for performance shares that ultimately vest, a one-time payment equal to the dividends such holders would have received if the number of such shares of common stock so issued had been held of record by such holders from the date of grant of such performance shares through the date of such issuance.
See our Statements of Consolidated Stockholders’ Equity and Note 13 of Notes to Interim Consolidated Financial Statements included in this Report for information regarding dividends paid during the quarters ended March 31, 2026 and March 31, 2025, and declared subsequent to March 31, 2026.
Repurchases of Common Stock
We have not completed any share repurchases since March 2020. We will continue to assess share repurchases as a part of our capital allocation priorities and strategic investment opportunities identified to support further growth in our business. At March 31, 2026, $93.1 million remained authorized and available for future repurchases of common stock under our stock repurchase program.
See our Statements of Consolidated Stockholders’ Equity included in this Report for information regarding minimum statutory tax withholding obligations arising during the quarters ended March 31, 2026 and March 31, 2025 in connection with the vesting of non‑vested shares, restricted stock units, and performance shares.
Critical Accounting Estimates and Policies
Our consolidated financial statements are prepared in accordance with GAAP. In connection with the preparation of our financial statements, we are required to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets, liabilities, revenue and expenses and the related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates and such differences could be material.
Our significant accounting policies are discussed in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. We discuss our critical accounting estimates in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10‑K for the year ended December 31, 2025. There have been no material changes in our critical accounting estimates and policies since December 31, 2025.
New Accounting Pronouncements
Information regarding new accounting pronouncements is included in Note 1 of our Interim Consolidated Financial Statements in this Form 10-Q.
28
Availability of Information
We file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements, any amendments to those reports and statements and other information with the SEC. You may obtain the documents that we file electronically from the SEC’s website at http://www.sec.gov. Our filings with the SEC are made available free of charge on our website at http://www.kaiseraluminum.com as soon as reasonably practicable after we file or furnish the materials with the SEC. News releases, announcements of upcoming earnings calls and events in which our management participates or hosts with members of the investment community and an archive of webcasts of such earnings calls and investor events and related investor presentations, are also available on our website. Information on our website is not incorporated into this Form 10-Q unless expressly noted.
The following quantitative and qualitative disclosures about market risk should be read in conjunction with Note 4 and Note 7 of Notes to Interim Consolidated Financial Statements included in this Report. Our operating results are sensitive to changes in the prices of primary aluminum, certain alloying metals, natural gas, electricity, and foreign currency, and also depend to a significant degree upon the volume and mix of products sold to customers. We have historically utilized hedging transactions to lock in a specified price or range of prices for certain products which we sell or consume in our production process, and to mitigate our exposure to changes in energy prices.
During the quarters ended March 31, 2026 and 2025, settlements of derivative contracts were for 39.1 million pounds and 27.2 million pounds, respectively, of hedged shipments sold on pricing terms that created aluminum price risk for us. At March 31, 2026, we had derivative contracts with respect to approximately 60.9 million pounds and 1.5 million pounds to hedge sales to be made during the remainder of 2026 and 2027, respectively, on pricing terms that create aluminum price risk for us.
Based on the aluminum derivative positions held by us to hedge firm-price customer sales agreements, we estimate that a $0.10/lb decrease in the LME market price of aluminum as of March 31, 2026 and December 31, 2025, with all other variables held constant, would have resulted in an unrealized mark-to-market loss of $6.2 million and $2.5 million, respectively, with corresponding changes to the net fair value of our aluminum derivative positions. Additionally, we estimate that a $0.05/lb decrease in the Midwest premium for aluminum as of March 31, 2026 and December 31, 2025, with all other variables held constant, would have resulted in an unrealized mark-to-market loss of $3.1 million and $0.8 million, respectively, with corresponding changes to the net fair value of our aluminum derivative positions.
We are exposed to the risk of fluctuating prices of certain alloying metals, especially copper, zinc, and magnesium, to the extent that changes in their prices do not highly correlate with price changes for aluminum. Copper, zinc, magnesium, and certain other metals are used in our remelt operations to cast rolling ingot and extrusion billet with the proper chemistry for our products. From time to time, we enter into forward contract swaps and/or physical delivery commitments with third parties to mitigate our risk from fluctuations in the prices of these alloys. As of March 31, 2026, we had forward swap contracts with settlement dates designed to align with the timing of scheduled purchases of zinc and copper by our manufacturing facilities. We estimate that a $0.10/lb decrease in the market price of zinc and copper as of both March 31, 2026 and December 31, 2025, with all other variables held constant, would have resulted in an unrealized mark‑to‑market loss of $0.6 million at each date, with corresponding changes to the net fair value of our zinc and copper derivative positions.
Energy
We are exposed to the risk of fluctuating prices for natural gas and electricity. We, from time to time, in the ordinary course of business, enter into hedging transactions and/or firm-price physical delivery commitments with third parties to mitigate our risk from fluctuations in natural gas and electricity prices. We estimate that a $1.00 per mmbtu decrease in natural gas prices would have resulted in an unrealized mark-to-market loss of $3.5 million and $3.1 million as of March 31, 2026 and December 31, 2025, respectively, with corresponding changes to the net fair value of our natural gas derivative positions. We estimate that a $5.00 per Mwh decrease in electricity prices would have resulted in an unrealized mark-to-market loss of $1.6 million, as of March 31, 2026, with corresponding changes to the net fair value of our electricity derivative positions. We had no outstanding electricity derivative positions as of December 31, 2025.
Foreign Currency
As of March 31, 2026, we hedged the foreign currency exchange rate risk related to certain lease transactions and equipment purchases denominated in Euros using forward swap contracts with settlement dates through July 2027. We estimate that a 10% decrease in the exchange rate of our hedged foreign currencies to U.S. dollars would have resulted in an unrealized mark-to-market loss of $0.1 million as of both March 31, 2026 and December 31, 2025, with corresponding changes to the net fair value of our foreign currency derivative positions.
Evaluation of Disclosure Controls and Procedures. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the principal executive officer and principal financial officer, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures was performed as of the end of the period covered by this Report under the supervision of and with the participation of our management, including the principal executive officer and principal financial officer. Based on that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of March 31, 2026 at the reasonable assurance level.
Changes in Internal Control Over Financial Reporting. We had no changes in our internal control over financial reporting during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II – OTHER INFORMATION
Reference is made to Part I, Item 3. “Legal Proceedings” included in our Annual Report on Form 10-K for the year ended December 31, 2025 for information concerning material legal proceedings with respect to the Company. There have been no material developments since December 31, 2025.
Reference is made to Part I, Item 1A. “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025 for information concerning risk factors. There have been no material changes in risk factors since December 31, 2025.
The following table provides information regarding our repurchases of our common shares during the quarter ended March 31, 2026:
Equity Incentive Plan
Stock Repurchase Plan
TotalNumberof SharesPurchased1
AveragePriceper Share
TotalNumberof SharesPurchased2
MaximumDollar Valueof Sharesthat MayYet BePurchasedUnder thePrograms(millions)2
January 1, 2026 - January 31, 2026
93.1
February 1, 2026 - February 28, 2026
76
127.05
March 1, 2026 - March 31, 2026
69,980
125.84
70,056
n/a
None.
Not applicable.
Rule 10b5-1 Trading Arrangements. During the quarter ended March 31, 2026, no director or officer of the Company adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" as each term is defined in Item 408 of Regulation S-K.
*Item 6. Exhibits
Exhibit
Provided
Incorporated by Reference
No.
Exhibit Description
Herewith
Form
File Number
Filing Date
2026 Short-Term Incentive Plan for Key Managers
X
2026-2028 Long-Term Incentive Plan Performance Shares
10.3
2026 Form of Executive Officer Restricted Stock Unit Award Agreement
10.4
2026 Form of Executive Officer Performance Shares Award Agreement
Transition Letter between the Company and Blain A. Tiffany
8-K
001-09447
January 7, 2026
31.1
Certification of Keith A. Harvey pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2
Certification of Neal E. West pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1
Certification of Keith A. Harvey pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2
Certification of Neal E. West pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH
Inline XBRL Taxonomy Extension Schema
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
/s/ Neal E. West
Neal E. West
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
/s/ Vijai Narayan
Vijai Narayan
Vice President and Chief Accounting Officer
(Principal Accounting Officer)
Date: April 23, 2026