CENX Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Shipments: 131,000 tons, a 6% increase from Q1 2026.

Net Sales: $752 million, up $103 million sequentially, driven by higher LME prices and increased shipments.

Net Income: $249 million ($2.39 per share); adjusted net income was $257 million ($2.46 per share).

Adjusted EBITDA: $327 million, an increase of $96 million from the previous quarter.

Cash Position: $388 million at the end of Q2, with net debt reduced to $98 million and no outstanding borrowings on credit facilities.

CapEx: $59 million, primarily for the Mt. Holly expansion and new power generation unit at Jamalco.

2Strategic Updates and Business Highlights

Operational Performance: All Century assets are now operating at full capacity for the first time in over a decade, with successful project completions at Mt. Holly and Grundartangi.

Market Conditions: Strong demand for aluminum driven by infrastructure build-outs, aerospace, and reshoring efforts, with a projected global deficit of approximately 1 million tons for 2026.

Jamalco Update: New power generation turbine (TG 4) operational, allowing the plant to run on self-generated energy, significantly reducing reliance on the Jamaican grid.

Oklahoma Smelter Project: Progressing on financing and energy contracts, with expectations for final investment decision (FID) and groundbreaking by year-end 2026.

3Forward Guidance and Outlook

Q3 Expectations: Anticipated adjusted EBITDA in the range of $325 million to $345 million, with expected increases in production and shipments from Mt. Holly.

Pricing Outlook: Expected increases in lagged LME prices and European premiums, though energy costs are anticipated to rise due to seasonal factors.

Cash Flow: Strong cash flow conversion expected in the second half of 2026, bolstered by tax credits and insurance recoveries.

4Bad News, Challenges, or Points of Concern

Instability Post-Restart: Some operational instability at Mt. Holly following the restart, expected to impact Q3 but anticipated to resolve by Q4.

Bauxite Quality Issues: Jamalco facing challenges with lower quality bauxite affecting costs and volumes, with a revised mining plan in place but expected to take time to implement.

Market Uncertainties: Potential risks associated with geopolitical factors affecting aluminum supply chains, particularly in the Gulf region.

5Notable Q&A Insights

Executive Order Impact: The recent executive order by President Trump is expected to provide Century with significant tariff benefits for aluminum imports, enhancing EBITDA and cash flow.

Shareholder Returns: Management indicated a focus on maintaining liquidity and pursuing organic growth opportunities before considering capital returns to shareholders.

Oklahoma Smelter Community Engagement: Management is actively engaging with local communities to address concerns regarding the new smelter project, emphasizing the benefits of job creation and investment. Overall, Century Aluminum reported a strong quarter with significant operational achievements and positive market conditions, while also navigating some challenges related to production stability and raw material quality. The outlook remains optimistic with continued focus on strategic growth initiatives and community engagement.