Kaiser raises outlook, continues expansion projects

Kaiser Aluminum is raising its full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) guidance to 10-15% above last year’s level, after the Tennessee-based manufacturer reported a better-than-expected second quarter.

The company now expects adjusted EBITDA to increase 10-15% above the prior year, an improvement over its previous forecast of a 5-10% year-over-year increase.

Second quarter results “enabled us to sustain margin levels above 19% for the first half of 2025,” said president and CEO Keith Harvey.

Otherwise, the market outlook for the year remains unchanged, with conversion revenue expected to grow 5-10%.

Kaiser reported net income of $20 million for the second quarter, down from $27 million in the same period last year. Net sales rose to $823 million over the same period, up from $773 million in Q2 2024.

Expansions underway

Meanwhile, Kaiser is expanding capacity at two facilities.

The company is commissioning its fourth coating line at its Warrick rolling mill in Indiana, which will be moving into the customer qualification phase soon. A full run-rate level is expected later this year.

Kaiser is also expanding its Trentwood plant in Spokane, Washington, which produces high-end aluminum products for the aerospace industry.

“Equipment has arrived on site and the team is currently conducting prep exercises to facilitate a seamless installation,” Harvey said.

“The Trentwood team has mastered this process over the course of six major expansions over nearly two decades, expanding our aerospace and general engineering heat-treated plate capacity by greater than 2.5 times. The timing for this investment is ideal as our key end markets are expected to recover over the next several quarters.”