Century reports lower shipments on Iceland outage, guides 2026

A 15% year-over-year decline in Icelandic shipments offset a 2.5% gain in US deliveries, which rose 91,885 t from 89,613 t in the fourth quarter of 2024.

Shipments

For the year, primary aluminum shipments totaled 647,112 t, compared with 677,967 t in 2024.

Although US fourth-quarter shipments increased year over year, full-year US shipments declined to 371,708 t from 378,193 t in 2024.

Mt. Holly’s full-year shipment figure of 156,000 t declined from 161,000 t in 2024 and was about 9,000 t below the level initially discussed during fourth-quarter 2024 reporting.

Management said improved fourth-quarter operational performance at Mt. Holly increased volume and lowered operating costs compared with the third quarter.

Shipments from the Sebree plant totaled 215,000 t in 2025, a drop of 2,000 t from the prior year but in line with expectations outlined earlier in the year.

Fourth-quarter consolidated US shipments rose by 2,272 t year over year.

Looking ahead, Century expects consolidated shipments to decline to 630,000 t from 647,000 t in 2025, reflecting idled capacity in Iceland for a significant portion of the year.

Sebree shipments are projected at 215,000 t, down 1,000 t from 2025. Mt. Holly shipments are expected to increase to 200,000 t, from 156,000 t in 2025, as the company advances its restart of more than 50,000 t of idled capacity.

Century project Grundartangi shipments of 215,000 t in 2026, representing a reduction of about 60,000 t from the prior year.

Plant updates

Mt. Holly

While full-year US shipments were lower year over year, the fourth quarter showed a modest sequential increase.

The restart of more than 50,000 t of idled production at Mt. Holly remains scheduled for completion by the end of Q2’26. The company incurred restart project costs during the quarter.

As of the fourth quarter, the company had not disclosed that the 90 idled pots associated with the 50,000 t restart had returned to service.

Grundartangi

Century attributed the fourth-quarter shipment decline to idled production at its Iceland facility following to equipment failure.

Chief Financial Officer Peter Trpkovski said the company expects insurance reimbursements for business interruption losses on a one- to two-quarter lag and expects to receive a reimbursement of “close to $40 million” in the first quarter.

Management indicated that by late July, the Grundartangi should return to full production. Combined with the Mt. Holly ramp by late June, the company expects to enter August operating at full production and 100% utilization across its smelters.

Hawesville

Century previously announced the sale and redevelopment of the previously curtailed Hawesville smelter.

Management clarified that Hawesville is no longer part of Century’s operating aluminum platform but instead represents a retained financial asset tied to data center redevelopment.

An analyst asked whether the company intended to use the value of its 6.8% retained stake in the Hawesville data center ownership to help fund the planned Oklahoma smelter or hold the stake as a longer-term investment.

Chief Executive Officer Jesse Gary described the position as “a great liquidity option,” that provides certainty of exit if the company chooses. However, he said Century expects to generate sufficient cash flow from ongoing operations to fund the Oklahoma smelter without needing to monetize the Hawesville stake in the near term.

Management did not indicate if Century retains operating control, smelting rights, or a power contract structure that would allow a restart of aluminum production at Hawesville.

Inola

Century reiterated that development work continues on its planned joint venture primary aluminum smelter in Oklahoma.

Executives said Century and joint venture partner Emirates Global Aluminium (EGA) are working together to finalize a long-term power agreement with Public Service Company of Oklahoma (PSO), the regional utility provider.

Management described the engagement with PSO as ongoing and said negotiations are “making good progress.”

Q1 pricing outlook

Century’s bridge to first-quarter adjusted EBITDA guidance of $215 million to $235 million uses specified realized price assumptions in its earnings presentation, including LME of $2,850 per metric ton, a US Midwest premium of $2,140 per metric tons (about 97¢ per pound) and a European duty-paid premium of $315 per metric ton (about 10.5¢ per pound).

Under those assumptions, the presentation shows an estimated $70 million to $80 million contribution from LME and delivery premiums compared to fourth-quarter levels, with other line items including a negative impact from energy of $20 million and volume/mix of about $5 million.

For context, Century reported realized LME prices at $2,615 per metric ton and a realized US Midwest premium of $1,775 per metric ton (80¢/lb per pound). Trpkovski said the realized fourth-quarter LME price rose $105 per metric ton versus the prior quarter and the realized US Midwest premium increased $350 per metric ton.

Financial results

Net sales rose to $634 million in the fourth quarter from $631 million in the prior year period and full-year net sales increased more sharply to $2.53 billion from $2.22 billion in 2024.

Century net income attributable to stockholders fell significantly to $1.8 million in fourth-quarter 2025, compared with $47.7 million in fourth-quarter 2024. For the full year, profit dropped to $41.8 million in 2025, down from $339.4 million in 2024.

The sharp year-over-year decline in reported net income reflects the absence of significant nonrecurring benefits recorded in 2024, combined with several exceptional charges in 2025, rather than a deterioration in underlying operating performance.

Full-year 2024 net income included a $245.9 million bargain purchase gain related to the Jamalco acquisition, as well as Section 45X production tax credit impacts and other one-time accounting items. Those gains did not recur in 2025.