Century sees more Mt. Holly output in second half

Century finished restarting the remaining 90 pots at its Mt. Holly smelter in South Carolina in late June.

The company previously said the restart would add more than 50,000 metric tons of idled capacity.

Century said in its Q2 2025 presentation that the project would raise US primary aluminum production by nearly 10%. At that point, Mt. Holly was operating at 75% of its 230,000-metric-ton annual capacity.

Mt. Holly shipped 82,000 metric tons through June, compared with 81,000 metric tons in the prior-year period. Century’s Sebree smelter shipped 107,000 metric tons, down from 108,000 metric tons over the same period. Combined, US shipments totaled 189,000 metric tons in both periods.

Mt. Holly output moves into the second half

Century attributed the limited Q2 shipment effect partly to the timing of the restart. The final pots came online in late June and the plant reached full production at the end of the quarter.

Management said Q2 captured only part of the higher Mt. Holly output. It expects Q3 to show the full quarterly benefit from the additional tonnages.

Century also said quarter-end cutoff timing increased finished goods inventory tied to the smelter expansion. The company expects that inventory to ship during Q3.

The company’s full-year shipment outlook points to a much larger second-half contribution from Mt. Holly.

Century expects the smelter to ship 200,000 metric tons during 2026 after shipping 82,000 metric tons through June. That would leave 118,000 metric tons for the second half if the company reaches its full-year target.

A year earlier, the company projected 165,000 metric tons of full-year shipments from Mt. Holly. Its Sebree outlook in Kentucky remains at 215,000 metric tons. Therefore, Century raised its combined US plant shipment outlook to 415,000 metric tons from 380,000 metric tons in the comparable 2025 presentation.

Consolidated shipments reflect lower Iceland volume

Century shipped 130,632 metric tons of primary aluminum overall in Q2, up from 122,865 metric tons in the first quarter. Shipments fell from 175,741 metric tons in Q2 2025.

The year-over-year decline resulted from the production interruption at Century’s Grundartangi smelter in Iceland. Iceland shipments fell to 35,575 metric tons from 81,222 metric tons a year earlier.

Century returned Line 2 to near-full production during the quarter and completed the restart at the end of July.

Grundartangi continues to operate at slightly reduced amperage until Century installs replacement transformers in Q4. Management said it does not currently expect the installation to interrupt production.

Century expects total aluminum shipments of 630,000 metric tons for 2026.

Sales increase as realized prices rise

Century reported $752.1 million in second-quarter net sales, up from $628.1 million a year earlier. Sequentially, revenue rose from $649.2 million in the Q1 2026.

Primary aluminum sales totaled $693.5 million, compared with $558.1 million in Q2 2025. The primary aluminum sales excludes scrap sales, purchased aluminum and alumina sales.

The company did not disclose value-added product shipments separately. It said volume and sales mix contributed $8 million of sequential EBITDA growth in Q2.

Adjusted EBITDA attributable to Century increased to $326.9 million from $74.3 million in the prior-year period. Sequentially, it rose from $231.4 million in the first quarter.

Q3 outlook on realized prices

Century expects lagged realized LME prices of $3,325 per metric tons during Q3. That would be an increase of roughly $75 per metric ton from its Q2 realized level of $3,250.

Meanwhile, the company expects its realized Midwest Premium to decline to $1.09 per pound, down three cents from Q2.

Century’s pricing convention utilize an even split between a one- and three-month lag for LME pricing, while the Midwest Premium carries about a one-month lag.