[Century Aluminum Company First Quarter 2025 Results](index=1&type=section&id=Century%20Aluminum%20Company%20Reports%20First%20Quarter%202025%20Results) [First Quarter 2025 Financial and Business Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Business%20Highlights) In Q1 2025, Century Aluminum's net sales increased slightly by $3.0 million sequentially to $633.9 million, driven by higher aluminum prices and premiums, while net income and Adjusted EBITDA decreased due to higher input and energy costs Q1 2025 vs Q4 2024 Financial Results | $ million (except shipments and per share data) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Aluminum shipments (tonnes) | 168,672 | 166,677 | | Net sales | $633.9 | $630.9 | | Net income attributable to Century stockholders | $29.7 | $45.2 | | Diluted earnings per share | $0.29 | $0.44 | | Adjusted net income | $36.6 | $43.5 | | Adjusted earnings per share | $0.36 | $0.42 | | Adjusted EBITDA | $78.0 | $80.9 | - Net sales increased by **$3.0 million** sequentially, driven by higher LME aluminum prices, regional premiums, and favorable volume, partially offset by lower third-party alumina sales[4](index=4&type=chunk) - Net income decreased by **$15.5 million** sequentially to **$29.7 million**, primarily due to higher input costs and losses on derivative instruments, with Adjusted net income at **$36.6 million**, a **$6.9 million** sequential decrease[5](index=5&type=chunk) - Adjusted EBITDA decreased by **$2.9 million** from the prior quarter to **$78.0 million**, mainly due to higher energy and raw material costs, partially offset by improved LME and regional price premiums[6](index=6&type=chunk) - Key operational achievements include a **38% increase** in the realized Midwest premium, a new five-year labor contract for the Grundartangi smelter, and an extension of the power purchase agreement in Iceland through Q1 2032[7](index=7&type=chunk) [Second Quarter 2025 Outlook](index=2&type=section&id=Second%20Quarter%202025%20Outlook) The company anticipates an improvement in financial performance for the second quarter of 2025, with Adjusted EBITDA expected to be in the range of $80 to $90 million - The company expects second quarter Adjusted EBITDA to range between **$80 million to $90 million**[8](index=8&type=chunk) - The expected increase in Adjusted EBITDA is driven by higher Midwest regional premiums and lower energy costs, partially offset by planned major maintenance and seasonal labor expenses[8](index=8&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2025, including the Statements of Operations, Balance Sheets, and Cash Flows, detailing the company's financial performance, position, and cash movements [Consolidated Statements of Operations](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, the company reported total net sales of $633.9 million and a gross profit of $60.6 million, resulting in a net income attributable to Century stockholders of $29.7 million, or $0.29 per diluted share Q1 2025 Statement of Operations (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total net sales | $633.9 | $630.9 | | Gross profit | $60.6 | $66.3 | | Operating income | $46.1 | $49.3 | | Net income attributable to Century stockholders | $29.7 | $45.2 | | Diluted EPS | $0.29 | $0.44 | [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Century Aluminum's total assets stood at $1,954.5 million, with total equity increasing to $690.7 million and cash and cash equivalents rising to $44.9 million Balance Sheet Highlights (in millions) | | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $44.9 | $32.9 | | Total current assets | $821.9 | $802.8 | | Total assets | $1,954.5 | $1,939.4 | | Total current liabilities | $447.4 | $463.7 | | Total equity | $690.7 | $662.7 | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, the company generated $72.3 million in net cash from operating activities, a significant turnaround from a $14.8 million use of cash in Q1 2024, ending the quarter with a $12.0 million increase in total cash Cash Flow Summary (in millions) | | Three months ended Mar 31, 2025 | Three months ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $72.3 | $(14.8) | | Net cash used in investing activities | $(15.5) | $(29.7) | | Net cash (used in) provided by financing activities | $(44.8) | $49.2 | | Change in cash, cash equivalents and restricted cash | $12.0 | $4.7 | [Selected Operating Data](index=7&type=section&id=SELECTED%20OPERATING%20DATA) Total primary aluminum shipments increased by 1% sequentially to 168,672 tonnes in Q1 2025, with an increase from United States operations and a slight decrease from Iceland Primary Aluminum Shipments (Tonnes) | | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | United States | 94,601 | 89,613 | 97,602 | | Iceland | 74,071 | 77,064 | 77,025 | | **Total** | **168,672** | **166,677** | **174,627** | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES) This section provides a detailed reconciliation from GAAP to non-GAAP financial measures, adjusting net income to $36.6 million and calculating Adjusted EBITDA at $78.0 million for Q1 2025 Reconciliation to Adjusted Net Income (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income attributable to Century stockholders (GAAP) | $29.7 | $45.2 | | Unrealized loss (gain) on derivative contracts, net of tax | $3.0 | $(5.8) | | Mt. Holly emergency energy charges | $3.5 | $— | | **Adjusted net income attributable to Century stockholders (Non-GAAP)** | **$36.6** | **$43.5** | Reconciliation to Adjusted EBITDA (in millions) | | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net income attributable to Century stockholders (GAAP) | $29.7 | $45.2 | | Adjustments (Interest, Tax, D&A, etc.) | $48.3 | $35.7 | | **Adjusted EBITDA attributable to Century stockholders (Non-GAAP)** | **$78.0** | **$80.9** | [Legal Disclosures](index=2&type=section&id=Legal%20Disclosures) This section contains important legal information, explaining the company's rationale for using non-GAAP financial measures and providing a cautionary statement about forward-looking statements and associated risks - The company uses non-GAAP measures like adjusted net income and adjusted EBITDA to facilitate period-to-period comparisons by excluding items management believes are not indicative of ongoing operating performance[10](index=10&type=chunk) - The report contains forward-looking statements concerning future events and performance, which are based on current expectations but are subject to significant risks and uncertainties[11](index=11&type=chunk)[13](index=13&type=chunk) - Key risk factors include global economic conditions, aluminum and raw material prices, power availability and costs, geopolitical events like the wars in Ukraine and the Middle East, and the impact of trade actions like Section 232 tariffs[11](index=11&type=chunk)

Core Insights - Century Aluminum Company reported a net income attributable to stockholders of $29.7 million for Q1 2025, a decrease of $15.5 million from Q4 2024, primarily due to higher input costs and losses on derivative instruments [4][8] - Adjusted net income for the same period was $36.6 million, down $6.9 million sequentially, influenced by exceptional items including emergency energy charges and unrealized losses on derivatives [4][8] - The company expects Q2 2025 Adjusted EBITDA to range between $80 to $90 million, driven by increased regional premiums and lower energy costs [6] Financial Performance - Net sales for Q1 2025 were $633.9 million, an increase of $3.0 million from Q4 2024, attributed to higher LME aluminum prices and favorable volume and mix [3][8] - Aluminum shipments increased by 1% sequentially to 168,672 tonnes [8] - Adjusted EBITDA for Q1 2025 was $78.0 million, a decrease of $2.9 million from the previous quarter, mainly due to higher energy prices and raw material costs [5][8] Operational Highlights - The Midwest premium realized was $602, reflecting a 38% increase from the prior quarter [8] - The company recorded a positive impact of $16.2 million from the increase in Section 232 aluminum tariffs to 25% [8] - Century Aluminum's liquidity position as of March 31, 2025, was $339.1 million, consisting of cash and cash equivalents of $44.9 million and $294.2 million in borrowing availability [5][8] Strategic Developments - A new five-year labor contract was approved for the Grundartangi smelter [8] - The power purchase agreement with ON Power, the largest power provider in Iceland, was extended through Q1 2032 [8]

Group 1 - Century Aluminum Company will report first quarter 2025 earnings on May 7, 2025, after market close [1] - A follow-up conference call will be held on the same day at 5:00 p.m. Eastern time [1] - The earnings call will be webcast live on the company's website, with a replay available approximately two hours after the live call [2] Group 2 - Investors are advised to begin the registration process at least 10 minutes before the live call [2] - Contact information for investor relations and media inquiries is provided [2]

Core Viewpoint - Century Aluminum (CENX) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the changing earnings picture of a company [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Century indicate an improvement in the company's underlying business, which is expected to positively impact its stock price [5][10]. Earnings Estimate Revisions for Century - For the fiscal year ending December 2025, Century is projected to earn $3.80 per share, representing a 15.5% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Century has increased by 37.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Century to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9][10].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Century Aluminum (CENX) as a strong value stock based on its metrics and rankings [2][3][6] Company Metrics - Century Aluminum (CENX) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the strongest value stocks currently available [3] - CENX's Price-to-Book (P/B) ratio is 2.20, which is significantly lower than the industry average of 6.59, suggesting it may be undervalued [4] - The stock's P/B ratio has fluctuated between a high of 3.53 and a low of 1.91 over the past year, with a median of 2.63 [4] - CENX's Price-to-Sales (P/S) ratio is 0.65, compared to the industry's average P/S of 0.73, further indicating potential undervaluation [5] Investment Outlook - The combination of CENX's strong earnings outlook and favorable valuation metrics positions it as an impressive value stock at the moment [6]

Steven Cress is VP of Quantitative Strategy and Market Data at Seeking Alpha. Steve is also the creator of the platform’s quantitative stock rating system and many of the analytical tools on Seeking Alpha. His contributions form the cornerstone of the Seeking Alpha Quant Rating system, designed to interpret data for investors and offer insights on investment directions, thereby saving valuable time for users. He is also the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool design ...

Core Insights - Investors prioritize businesses that consistently generate profits, with net profit margin being a crucial metric for assessing profitability and operational efficiency [1][2] Group 1: Importance of Net Profit Margin - A higher net profit margin indicates a company's efficiency in converting sales into actual profits, providing insights into operational effectiveness and challenges faced [1] - The net profit margin is calculated as Net Profit divided by Sales multiplied by 100, serving as a valuable indicator of operational strength and cost management [2] - A strong net profit margin is preferred by investors as it reflects a company's business model, including pricing policy, cost structure, and manufacturing efficiency [3] Group 2: Limitations of Net Profit Margin - The net profit margin varies significantly across industries, making it less relevant for certain sectors like technology [3] - Differences in accounting treatments, particularly for non-cash expenses, can complicate comparisons of net profit margins across companies [3][4] - Companies that grow through debt may incur higher interest expenses, negatively impacting net profit and the effectiveness of the net profit margin as a performance measure [4] Group 3: Investment Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are key elements sought in a business model [5] - Screening parameters include a net margin of at least 0%, positive percentage change in EPS, and a high broker rating indicating bullishness on the stock [6][7] Group 4: Company Highlights - Willdan Group, Inc. (WLDN) provides professional technical and consulting services, with a Zacks Rank of 1 and a VGM Score of A; its 2025 earnings estimate was revised upward to $2.75 per share [7][8] - Limbach Holdings, Inc. (LMB) offers building systems and has a Zacks Rank of 1 with a VGM Score of A; its 2025 earnings estimate increased to $3.45 per share [8][9] - Century Aluminum Company (CENX) produces primary aluminum and has a Zacks Rank of 1 with a VGM Score of A; its 2025 earnings estimate was revised downward to $3.75 per share [10][11] - Dave Inc. (DAVE) is a financial technology company with a Zacks Rank of 1 and a VGM Score of B; its 2025 earnings estimate increased by 28.9% to $6.65 per share [11][12]

Group 1 - Shares of Century Aluminum (CENX) have increased by 11.2% over the past four weeks, closing at $19.32, with a mean price target of $25 indicating a potential upside of 29.4% [1] - The average price targets range from a low of $22 to a high of $27, with a standard deviation of $2.65, suggesting a relatively high agreement among analysts [2][7] - Analysts have shown strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases [4][9] Group 2 - The Zacks Consensus Estimate for CENX has increased by 35.9% due to one estimate moving higher over the last 30 days without any negative revisions [10] - CENX holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [11] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [12]

CHICAGO, March 21, 2025 (GLOBE NEWSWIRE) -- Century Aluminum Company (NASDAQ:CENX) announced today that its Board of Directors has appointed Peter Trpkovski to be the Company’s next Executive Vice President and Chief Financial Officer. As CFO, Trpkovski will build on his 12-years of experience at Century and focus on advancing the Company’s strategic initiatives, strengthening financial operations, and driving value for stakeholders. Trpkovski will also continue to serve as Century’s Treasurer. He succeeds ...

Market Risks - The company faces significant risks related to declines in the market price of primary aluminum, which can adversely affect its financial condition and results of operations[83]. - Excess capacity and overproduction in the aluminum market may disrupt pricing and negatively impact the company's sales, margins, and profitability[87]. - The company is exposed to market price volatility due to its reliance on market-based electricity contracts, which can lead to increased operational costs[89]. - The company is exposed to price risk for raw materials, with significant fluctuations affecting profitability and operational costs[106]. - Changes in trade laws or regulations could adversely affect sales margins and profitability, particularly regarding import tariffs on primary aluminum[161]. Operational Challenges - Increases in energy costs, particularly electricity, are critical to the company's profitability and can lead to operational disruptions[88]. - The company has experienced power supply disruptions that have previously impacted its operational results, highlighting the importance of stable energy supply[90]. - The company relies on a limited number of suppliers for key raw materials, and disruptions in supply could lead to production inefficiencies and increased costs[104]. - The company has curtailed operations at its Hawesville smelter and is exploring strategic alternatives, with no assurance of profitable restart[100]. - A new power agreement at the Mt. Holly smelter may allow for the potential restart of 25% of its curtailed production capacity, subject to market conditions[98]. - Future production curtailments may incur substantial ongoing expenses, impacting the company's financial position and liquidity[97]. - Unpredictable events, such as natural disasters and extreme weather, have previously disrupted operations and could lead to increased costs and operational challenges[118]. Financial Position - The company requires substantial resources to fund operating expenses and capital expenditures, which may necessitate access to financial markets[112]. - As of December 31, 2024, the company had approximately $528.2 million of outstanding debt, including $250.0 million of 7.5% senior secured notes due 2028 and $86.3 million of convertible senior notes due 2028[135]. - The company's ability to pay interest and repay or refinance its debt depends on access to liquidity and future operating performance, which are subject to various uncontrollable factors[135]. - The company is vulnerable to adverse economic conditions due to substantial indebtedness, which limits operational flexibility and reduces cash available for other purposes[137]. - The company is subject to interest rate risk, as its borrowings are at variable interest rates, which could increase debt service obligations and adversely affect cash flow[138]. - Existing debt instruments contain covenants that restrict business operations and limit the ability to incur additional debt or pay dividends, potentially impairing liquidity and growth[139]. - The company relies on intercompany transfers from subsidiaries to meet debt service obligations, making it dependent on their operating results[140]. Customer Concentration - Approximately 59.1% of the company's consolidated net sales for the year ended December 31, 2024, were derived from Glencore, highlighting a concentrated customer base[110]. - For the year ended December 31, 2024, approximately 59.1% of consolidated sales were derived from Glencore and its affiliates[34]. - The company expects to sell a significant portion of its production to Glencore in 2025, maintaining a concentrated customer base[35]. Acquisition and Integration - The acquisition of a 55% interest in Jamalco in May 2023 significantly expanded the company's operations, adding bauxite mining and alumina refining capabilities[125]. - The company identified material weaknesses in internal controls over financial reporting related to the acquisition of Jamalco, which were remediated in fiscal 2024[130]. - The company may face risks associated with integration activities following the Jamalco acquisition, which could impact operational performance[126]. - The acquisition of a 55% interest in Jamalco secures a long-term supply of alumina, enhancing supply chain control[61]. Environmental and Regulatory Risks - The company is subject to various environmental laws and regulations that may adversely affect its business and financial position[156]. - Changes in climate change legislation or environmental regulations could lead to increased costs and impact the company's operations and profitability[155]. - The company is subject to various environmental laws and regulations that may impose significant costs and liabilities, potentially affecting financial condition and liquidity[158]. Labor Relations - Labor agreements for approximately 59% of the total workforce are currently under negotiation, with some agreements effective through 2025 and others expiring in 2026 and 2028[132]. Production and Capacity - Key production costs, including alumina, electrical power, carbon products, and labor, represented over 76% of the cost of goods sold for the year ended December 31, 2024[36]. - Approximately 327,000 tonnes, or 30% of Jamalco's alumina production, was sold to the company's aluminum smelters for the year ended December 31, 2024[37]. - The company completed a project to restart approximately 172,000 tonnes of production capacity at Mt. Holly, achieving 75% of its maximum capacity[58]. - The Grundartangi Casthouse Project can produce up to 150,000 tonnes of billet and 120,000 tonnes of primary foundry alloys[59]. Government Support and Incentives - The company entered into a Cooperative Agreement with the U.S. Department of Energy for up to $500 million in funding to build a new aluminum smelter in the United States[168]. - The Inflation Reduction Act provides a production tax credit equal to 10% of certain eligible production costs, which may benefit the company[166]. - The company may seek additional government grants and incentives to support the construction of the new aluminum smelter, which is subject to competitive application processes[169]. Cybersecurity - Cybersecurity incidents are increasing in frequency and sophistication, posing risks to the company's information technology systems and potentially impacting business operations[151]. Corporate Governance and Transparency - Century Aluminum provides access to periodic filings through the SEC's EDGAR system, including annual reports on Form 10-K and quarterly reports on Form 10-Q[74]. - The company offers free copies of its Forms 10-K, 10-Q, and 8-K upon request, highlighting transparency in financial reporting[74]. - Century Aluminum's Investor Relations Department can be contacted for document requests, indicating a commitment to shareholder communication[74].