Building & Construction
April 24, 2026
Kaiser Q1 shipments rise on aerospace and packaging; 2026 outlook increased
Written by Nicholas Bell
Kaiser Aluminum began 2026 with stronger shipment momentum across its highest-value end markets, led by aerospace and high-strength products and packaging, as recently completed capital projects began feeding into volumes, mix, and conversion revenue.
The company shipped 133,538 metric tons (mt) in the first quarter of 2026, up 7% from 125,010 mt in the prior year period. Conversion revenue rose 11% year over year to $404.4 million, while conversion revenue per pound increased to $1.37/lb from $1.32/lb over the same period.
Quarterly revenue increased to $1.1 billion from $777.4 million in the first quarter of 2025, while adjusted EBITDA increased to $129 million from $73 million.
Product mix
Shipment results by end market did not move in a uniform direction or magnitude.
Aerospace
Aerospace and high-strength aluminum shipments increased 9% year over year to 27,896 mt from 25,537 mt the previous year. Conversion revenue slipped slightly to $2.12 per pound ($/lb) from $2.14/lb in Q1 2025.
Management attributed the increase in shipments to higher commercial aircraft production, easing destocking, and stronger business jet, defense and space demand.
Packaging
Shipments in Kaiser’s largest category by volume rose 13% year over year to 66,497 metric tons from 59,058 mt a year earlier. Conversion revenue rose to $1.07/lb from $0.98/lb over the same period.
The company attributed the increase to stronger coated product demand and the continued ramp-up of the fourth coating line at Warrick in Indiana, where prior upgrade work constrained 2025 output.
Chief Executive Officer Keith Harvye said the shift toward higher-value coated volume at Warrick is “fundamental to Warrick’s long-term success,” adding that the company expects the improvement to continue through the balance of the year.
Management also said the fourth coating line has achieved eight monthly output records since 2025, although Kaiser still plans to operate the line at about 80% utilization while it works on quality and consistency.
General engineering
General engineering shipments decreased 2% year over year to 29,075 mt from 29,529 mt in the prior year period. However, conversion revenue on a per pound basis increased to $1.36/lb from $1.28/lb, pointing to pricing and mix rather than volume as the main driver.
Kaiser said customer inventories remain at multiyear lows, while lead times and pricing are moving out across most products.
Automotive extrusions
Automotive extrusions remained the weakest end market. Shipments declined 8% year over year to 10,070 mt in the first quarter of 2026, down from 10,886 mt the previous year. Conversion revenue also edged lower to $1.31/lb from $1.33/lb over the same period.
Kaiser said demand for light trucks and SUVs remains healthy, but broader auto conditions remain pressured by borrowing costs and tariff uncertainty.
2026 outlook
The company raised its 2026 outlook.
Kaiser now expects aerospace and high-strength aluminum shipments to rise to 15% to 20% this year, with conversion revenue up 10% to 15%, a revision from guidance of 10% to 15% and 5% to 10%, respectively, provided in February.
Packaging shipments are also now expected to increase by 10% to 15%, while packaging conversion revenue is anticipated to grow to 20% to 25%. The adjustment is from a predicted 5% to 10% rise in shipments and 15% to 20% growth in conversion revenue forecast during the presentation of the fourth quarter 2025 earnings presentation.
Despite the dip in first-quarter sales, general engineering shipments and conversion revenue are now expected to move higher by 5% to 10%, up from 3% to 5% in previous guidance, while Kaiser anticipates automotive extrusions to be flat to down 5% on both shipments and conversion revenue, an improvement from the prior outlook for a 5% to 10% decline.
