Kaiser Aluminum Q4 2025 Earnings Call Transcript

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Provided by Quartr
February 19, 2026

Key Takeaways

  • Positive Sentiment: Record EBITDA and margin expansion: 2025 adjusted EBITDA was $310 million (≈25% growth) with conversion-margin up to 21.3% and second-half margins near 24%, exceeding the company's October outlook.
  • Positive Sentiment: 2026 outlook targets growth: Management expects conversion revenue to rise ~5%–10% and EBITDA to grow ~5%–15%, calling for another record year driven primarily by operational execution and harvesting recent investments.
  • Positive Sentiment: Major growth projects complete but still ramping: Trentwood Phase Seven is online and the new Warrick coating line is commissioned (coated volumes now ~75%), with the coating line operating toward full production (∼80% utilization in 2026) and generating higher conversion revenue per pound despite a slower-than-expected ramp.
  • Neutral Sentiment: Mixed end‑market dynamics — aerospace conversion revenue fell in 2025 due to OEM plate destocking (expected to ease) with shipments forecast +10%–15% in 2026; packaging is strengthening (targeting 15%–20% conversion revenue growth) while automotive is expected to show a 5%–10% decline in 2026 shipments/revenue due to planned retooling outages that aim to enable multiyear demand capture.
  • Positive Sentiment: Stronger liquidity and capital plan: liquidity of ~$547 million after a $500 million 2034 note offering, net leverage improved to 3.4x, 2026 CapEx guidance of $120M–$130M, and free cash flow targeted at $120M–$140M (subject to metal-price working-capital swings).
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Earnings Conference Call
Kaiser Aluminum Q4 2025
00:00 / 00:00

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Operator

Greetings, everyone, and welcome to the Kaiser Aluminum Corporation Fourth Quarter and Full Year 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Orlando, Investor Relations. Thank you. You may begin.

Kimberly Orlando
SVP at Addo Investor Relations

Thank you. Hello, everyone, and welcome to Kaiser Aluminum's Fourth Quarter and Full Year 2025 Earnings Conference Call. If you have not seen a copy of our earnings release, please visit the Investor Relations page of our website at kaiseraluminum.com. We have also posted a PDF version of the slide presentation for this call. Joining me on the call today are Chairman, President, and Chief Executive Officer, Keith Harvey, and Executive Vice President and Chief Financial Officer, Neal West. Before we begin, I'd like to refer you to the first four slides of our presentation and remind you that the statements made by management and the information contained in this presentation that constitute forward-looking statements are based on management's current expectations.

Kimberly Orlando
SVP at Addo Investor Relations

For a summary of specific risk factors that could cause results to differ materially from the forward-looking statements, please refer to the company's earnings release and reports filed with the Securities and Exchange Commission, including the company's annual report on Form 10-K for the full year ended December 31st, 2024. The company undertakes no duty to update any forward-looking statements to conform the statements to actual results or changes in the company's expectations. In addition, we have included non-GAAP financial information in our discussion. Reconciliations to the most comparable GAAP financial measures are included in the earnings release and in the appendix of the presentation. Reconciliations of certain forward-looking non-GAAP financial measures to comparable GAAP financial measures are not provided, because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted or provided without unreasonable effort.

Kimberly Orlando
SVP at Addo Investor Relations

Any reference to EBITDA in our discussion today means Adjusted EBITDA, which excludes non-run rate items for which we have provided reconciliations in the appendix. Further, slide five contains definitions of terms and measures that will be commonly used throughout today's presentation. At the conclusion of the company's presentation, we will open the call for questions. I would now like to turn the call over to Keith Harvey. Keith?

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Thanks, Kim, and good morning, everyone. Thank you for joining us. I'll begin on slide seven. I'm pleased to report that our fourth quarter results continued to build on the momentum we've established throughout the year. This marks our fifth consecutive quarter of performance ahead of our internal expectations, and we exceeded the full-year outlook we provided in October. Startup costs moderated versus the prior two quarters, while metal pricing remained a tailwind. For the full year, we delivered more than 25% EBITDA growth, with margins above 21% and second half margins improving to nearly 24%, driven by our packaging investment that enhanced our mix, along with modest operational progress in multiple areas of the business. Overall, we achieved record EBITDA in 2025 and established a solid foundation for continued growth as we move into 2026.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

We are positioned to harvest the returns from our recent investments, continue strengthening margins, and generate free cash flow as we execute efficiently across the portfolio. With that, I'll turn the call over to Neal to review the quarter and full year financial results. I'll then return to discuss our end market trends, our 2026 outlook, and the strategic priorities that will guide us in the years ahead.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

Thank you, Keith, and good morning, everyone. I'll now turn to slide nine for an overview of our shipments and conversion revenue. Our full year total net sales were $3.4 billion. After adjusting for the hedge costs of alloy metal of $1.9 billion, our conversion revenue for the year was $1.5 billion, relatively consistent with 2024. Our total shipments were 1.1 billion pounds, down 64 million pounds, or 5% from 2024.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

Looking at each of our end markets in detail, aerospace and high-strength conversion revenue totaled $457 million, down $73 million or approximately 14%, primarily due to a 16% decrease in shipments attributed to the commercial aerospace OEM destocking of plate products and the impact of the planned Phase VII investment, which occurred in the second half of the year. Commercial aerospace OEM destocking began to ease exiting the fourth quarter of 2025. Across our other aerospace high-strength applications, that includes the business jet, defense, and space end markets, demand has remained strong. Packaging conversion revenue for the year totaled $544 million, up $54 million or approximately 11%, driven by our planned transition to coated products as we finalized commissioning of the new coating line.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

While shipments declined by 32 million pounds during this transition, reflecting a slower ramp-up of the coating line than originally anticipated, the shift is generating higher conversion revenue per pound, supported by the strong underlying market demand. General engineering conversion revenue for the year totaled $331 million, up $14 million, or approximately 4% year-over-year, on a 6% increase in shipments. Tariff-driven reshoring activity and KaiserSelect quality attributes continued to create a favorable demand backdrop, supporting both volumes and pricing. And finally, automotive conversion revenue for the year totaled $122 million, up 2% year-over-year, on a 6% decrease in shipments, primarily due to persistently high interest rates and tariff-related customer uncertainty affecting the automotive industry on the whole. However, improved pricing and product mix helped offset the lower shipments.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

Additional details on conversion revenue and shipments by end market application can be found in the appendix of this presentation. Now moving to slide 10. Reported operating income for 2025 was $189 million. After adjusting for non-run rate income of approximately $1 million, our 2025 adjusted operating income was $188 million, up $63 million from 2024. In addition, 2025 operating income included a $6 million increase in depreciation expense associated with the Trentwood Rolling Mill Phase VII expansion project and the commissioning of the new coating line at Warrick. An effective tax rate for the full year was 25%, comparable to 2024.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

For the full year 2026, we expect our effective tax rate before discrete items to be in the mid-20% range, including the impacts related to the new tax bill recently signed into law. Additionally, we anticipate that the 2026 cash tax payments for federal and state foreign taxes will be in a $5 million-$7 million range. Reported net income from 2025 was $113 million, or $6.77 per net income per diluted share, compared to net income of $66 million, or $4.02 net income per diluted share in the prior year.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

After adjusting for net pre-tax, non-run rate income of approximately $15 million, primarily related to legacy land sales and insurance settlements associated with prior year claims, adjusted net income for the year was $100 million, or $6.03 adjusted net income per diluted share. This compares to adjusted net income of $60 million, or $3.67 adjusted net income per diluted share in 2024. Now turning to slide 11. Adjusted EBITDA for the year was $310 million, up approximately $69 million from 2024. Adjusted EBITDA as a percentage of conversion revenue improved to 21.3%, approximately 470 basis points above our 2024 margin of 16.6%.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

In 2025, we also incurred approximately $47 million of non-recurring operating and other related costs, primarily associated with our new coating line startup at Warrick and planned Trentwood outage, which were more than offset by the impact of metal lag gain from rising metal prices. The improvement in Adjusted EBITDA, even with the 5% year-over-year decline in shipments, reflects resilient underlying fundamentals across our business and our end markets, along with a richer mix of value-added products. Now turning to a discussion on our balance sheet and cash flow. At the end of December 31st, 2025, total cash of approximately $7 million and approximately $540 million of net borrowing availability in our revolving credit facility resulted in a strong liquidity position of $547 million.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

As a reminder, the October extension of our $575 million revolving credit facility further demonstrates the strength of our balance sheet and the continued confidence our lenders have in our long-term strategy. The extended facility is set to mature in October 2030. Additionally, in November, we completed a $500 million offering of senior notes due in 2034 with favorable terms. We used the proceeds along with revolver borrowings and available cash to redeem our 2028 notes, effectively completing a planned refinancing that extends our long-term debt maturity profile and supports our long-term financial flexibility. Our senior notes interest costs are fixed, fixed at $54 million annually, and as of the year-end, our net debt leverage ratio was 3.4 times, an improvement from the 4.3 times at December 31st, 2024.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

Our full year 2025 capital expenditures came in at $137 million, following the completion of our major growth projects at Warrick and Trentwood. It is important to note that a $168 million usage of working capital during 2025 was a direct impact of rising metal prices through the year. For 2026, we expect capital expenditures to be in a range of $120 million-$130 million, with free cash flow anticipated being in a range of $120 million-$140 million, subject to metal price movement and resulting impact in working capital. As a reminder, we define free cash flow as cash flow from operations less capital expenditures.

Neal West
Neal West
EVP and CFO at Kaiser Aluminum Corporation

Additionally, in 2025, we returned approximately $51 million to our shareholders through dividend payments, marking our 19th consecutive year of dividend payments to our shareholders. On January 13th, we announced that our board of directors declared a quarterly dividend of $0.77 per common share, reflecting our ongoing commitment to disciplined capital allocation and delivering long-term value to our stockholders. With that, I'll turn the call back over to Keith to discuss our outlook. Keith?

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Thanks, Neal. Let me now turn to our outlook and priorities as we move into 2026 on slide 13. In 2026, Kaiser will celebrate its 80th anniversary, a milestone that speaks to the resilience of our operations and the durability of our long-standing customer relationships. Fittingly, our outlook reflects what we expect will be record years for both conversion revenue and EBITDA. I'll begin with aerospace and high-strength products. We expect shipments to increase in a range of 10%-15% in 2026, with conversion revenue expected up approximately 5%-10%. This implies conversion revenue per pound, consistent with our first half 2025 run rate, as last year's second half benefited from a richer aerospace extrusion mix as we upgraded plate lines at Trentwood.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

The Phase VII install was executed seamlessly and timed well to support the demand growth we expect in 2026 and beyond. Commercial aircraft production continues to recover, with increasing build rates at our OEM partners. We are well-positioned to support that growth with the additional plate capacity from Trentwood. As we've discussed previously, destocking at commercial OEMs has continued to temper near-term sell-through of plate products. However, we expect this to largely dissipate as we exit the year, if not earlier. We will continue to update you throughout 2026 on supply chain conditions. Importantly, I am very encouraged by the momentum building in one of our premier markets, momentum that should benefit results in 2026 and continue to build through the end of the decade. Defense and business jet demand remains consistent, and we continue to benefit from new opportunities across space and specialty platforms.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Now moving to packaging. Packaging demand and fundamentals continue to improve, supported by our long-term contracts that provide excellent visibility. Importantly, we completed our final contract commitment at this facility during the fourth quarter of 2025. For 2026, we are targeting shipment growth of 5%-10% and conversion revenue growth of 15%-20%. Our fourth coating line at Warrick is fully commissioned, qualified, and progressing toward full production. This investment shifts our mix toward higher-coated volumes, now at approximately 75% and growing, and supports the margin uplift we've targeted. The progress at Warrick reflects a multiyear journey that began with the strategic decision to acquire the facility in 2021. In 2026, we expect to see a step change in financial and customer satisfaction performance in this business.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

As we've previously stated, while profitability will improve meaningfully in 2026, the line will not yet be operating at its optimal rate. We plan to operate at approximately 80% utilization as we continue to fine-tune quality and reliability. Customer service remains a core tenet of Kaiser's values and a key differentiator in all our markets. Now turning to general engineering. We expect another year of growth, supported by improving GDP and strengthening demand in the semiconductor market. Shipments and conversion revenue are expected to grow approximately 3%-5% year-over-year, with the potential for even stronger growth, depending on the strength of the North American economy, as inventory levels at most customers remain at multiyear lows. Our businesses are well-positioned to respond quickly as these markets continue to improve. Now turning to automotive.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Automotive opportunities continue to expand, even as we remain highly selective in the products and services we provide to this market. The shift towards more internal combustion engine vehicles in the light truck and SUV category are driving demand for several of our products at a faster pace than previously anticipated. To support this expected multiyear demand outlook, we will be retooling select facilities and adding incremental capacity. While shipments and conversion revenue in 2026 are expected to decline approximately 5%-10% year-over-year. This primarily reflects planned outages, most notably at our Bellwood facility, associated with retooling rather than underlying demand. These actions position us to support higher demand and higher returns as market conditions evolve. Now turning to slide 14 and our summary outlook.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

With our two major growth investments now behind us, 2026 will mark a shift toward harvesting returns through margin expansion. With the execution risk of large-scale projects largely behind us, we are proactively intensifying our focus on reducing both manufacturing and operating costs to drive additional operating leverage and maximize the return on these investments. These actions are expected to also strengthen cash flow, continue reducing our debt leverage ratios, and improve our customer service standards. As we look ahead, we are establishing an initial outlook for 2026 of 5%-10% conversion revenue improvement year-over-year, with resulting EBITDA growth of 5%-15%, setting the stage for another record EBITDA performance year for the company.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

While metal pricing was a meaningful contributor to our performance in 2025, our expectations for 2026 are driven primarily by operational execution, with metal assumptions aligned with current future curves. In closing, we entered 2026 with a strong foundation, clear visibility into our end markets, and the assets firmly in place to deliver meaningful improvement in profitability and cash generation. We look forward to updating you on our progress throughout the year. With that, I will now open the call to any questions you may have. Operator?

Operator

Thank you. We will now conduct a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one to ask a question at this time. One moment while we poll for questions. The first question comes from Bill Peterson with JPMorgan. Please proceed.

Bill Peterson
Bill Peterson
Equity Research Analyst at JPMorgan

Yeah. Hi, good morning. Thanks for taking the questions, and yeah, really nice results for the year. My first question is on the 2026 outlook at a higher level. So I think it looks like the aerospace conversion revenue is below shipments, while packaging conversion revenue is above shipments. Is there anything to call out on mix? If we think about aero, for example, commercial business jet or defense, or is this more, you know, just more high strength and non-aero? And then on packaging, similarly, is this a pricing statement or a mix towards more coated products? Just any sort of color for the difference between the shipments and conversion revenue outlooks.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Sure. Hey, good morning, Bill. Let me hit aero first. You know, we called out some specifics because, as you recall, we had an outage at Trentwood mainly through the third quarter. So if you looked at the two halves of the year, our shipments in the second half were actually down 25% from the first half of the year. That was mainly plate related, and you saw a pretty higher number there because extrusions generally carry a higher price than the plate. We expect to come back rapidly on the plate in this year, so that the numbers we're reflecting there says we're back to having that full plate capacity. And so you'll see that in the numbers. The prices have remained very strong and consistent.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Of course, the majority of that is backed up by long-term agreements in place. And so, you know, as we've noted, as the industry continues to improve, continue to get improved shipments output by our customers, we should see those numbers pop up. From a mix perspective, what you will also see out of our flat roll shipments, Bill, we're starting to see activity again on the semiconductor side. So, as you know, we put that capacity in that can service both aero and general engineering. I'm really encouraged by the activity at the beginning of the year on semiconductor. So I think after maybe a two-year hiatus there, we're gonna start to see some good activity through the balance of the year that should really support that increased capacity at Trentwood.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

You know, as I move over to the packaging side and look at our business, I really think we're, we're positioned for a very strong year. The, we're in our seventh month of increasing output from our Roll Coat Four, the new investment that we made. So we're beginning to see the better throughput, throughput that was expected. We're beginning to, you know, get all the qualifications behind us. We're ramping up speeds.... So the opportunities there continue to exist, quite frankly, beyond what we have. We are working with some of our converters to try to get their performance up, improved, as I think the opportunities there exceed even all of our capacities there together. So as we also mentioned in our notes, we're really pleased to complete the final contract, multi-year contractual opportunity for the new capacity.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

So what you're gonna begin seeing, and what you have seen, is that the mix shift has begun in earnest. You'll start seeing some improved pricing on that side as a result of those investments and the contractual commitments that were made. And so we're really positioned there. You know, we talked about bringing that an additional 300-400 basis points impact on the total company. We're beginning to already see that, and they were a major influence into what happened for us, even at the end of the year. So a lot of expectations for that for 2026. Food market, the food packaging side is very strong. It's even stronger than beverage, and as you know, we're a major player there, so we see full output.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

You know, the surprise to me, and I'll, I'll just continue if I can. The surprise to me is the automotive opportunity that we, that we highlighted in our, in our comments. You know, with the move back toward the internal combustion engines, man, we're, we're seeing demand on trucks and SUVs. So we made a decision to make an investment that we really hadn't contemplated in the last 12 months, but we'll, we'll be making that, that decision to increase our capacity through some of our, highly specialty products, and that all services trucks and SUVs. So that's gonna be a unexpected focus for continued growth for us, in that category.

Bill Peterson
Bill Peterson
Equity Research Analyst at JPMorgan

Can I pick up on that last point? This auto opportunity, it sounds like it's capacity expansion, but it's not. I'm just trying to get a sense, would this take away from other markets? How much capacity growth does this, you know, imply? You know, when will this be—I guess, when will you be ready to sort of support this effort? And maybe taking a step back, similar to my question on the guidance, you're looking for this year to be down, following a pretty rich, I guess, mixed last year. Anything to call out from the market environment or, you know, platforms that you're on or things like that within the 2026 guidance?

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Yeah. No, the only difference, we don't expect any price deterioration there in any of the markets, Bill. The only change that was gonna be highlighted probably on the aero side was a slight adjustment as you bring back more plate as opposed to extrusion on the aero. On the automotive piece that I was just referring to, we're actually—these are actually fairly high margin products for us. They're all specialty products. They're actually products that Kaiser has 100% or close to 100% supply position, and as the markets turn back to stronger growth on planned, on trucks, especially around ICE vehicles, we're the only play. So there's gonna be an outage that—a couple of outages that we'll take through the year to prepare for that.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

So you may be actually, that may impact some of the shipments this year, but certainly preparing us for 2027 strength, continued strength, and we see these as multiyear. We don't think that the change, the shift that's gone to EV is just a single year or a temporary slope. We see this focus on ICE vehicles for trucks to be multiyear. That's what our customers are telling us. So we're gonna ramp up the investment, and I would expect to see... We, we'll highlight it more in April, but our automotive component here on very specialized products has the opportunity to increase substantially within the next 12-18 months.

Bill Peterson
Bill Peterson
Equity Research Analyst at JPMorgan

Okay, maybe picking up again on this. So, you know, CapEx guidance is, looks to be a little higher than expected. Is a lot of this driven by this auto opportunity, or maybe you could parse out, you know, the CapEx guide, maybe in the context, you know, I guess Phase VII, I think, came a bit under budget. Just any sort of context on the CapEx guidance?

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Yeah. Actually, we were expecting to be probably somewhere between $100-$112 million this year, and that change in range for us is purely that automotive opportunity. You know, our customers would take it today. They're actually utilizing some steel products because they don't have the availability of the aluminum products in the quantities that they need. So we've updated that opportunity, and that's the reason it's probably a slightly higher CapEx than you may have expected.

Bill Peterson
Bill Peterson
Equity Research Analyst at JPMorgan

Great. Maybe just my last one. Obviously, you mentioned earlier that you're not expecting any changes, I guess, to sort of, Midwest premiums or things like that. I assume that also may be somewhere around where scrap spreads are. But given the high prices that were or costs, I guess, for your customers, given that where aluminum pricing is today, are you hearing any evidence of demand destruction, or what areas would you be concerned with? And then maybe secondarily, you know, we're hearing more about derivative tariffs. Any potential impact to your business? And I realize it's early days on that, on that second point.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Yeah, no. You know, it's fascinating what's going on. You know, I can tell you this, Bill, this is a way to look at 2025 and 2026 for Kaiser. No question, we had some significant tailwinds. We had some significant higher operating costs as we put in these capacities. We don't expect those to extend into 2026, so you're gonna see a recovery on those costs that were out in 2026 versus, excuse me, 2025 versus 2026. Our outlook also has the expectation that you won't necessarily—you won't see that tailwind reoccur in 2026. Now, it may. You know, we're still seeing favorable higher prices than expected in Q1, but our outlook did not assume that to continue throughout the year.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

And so that gain that we're talking about here is purely operational gain based on the investments we've made, the cost and the efficiency gains we expect to make in our operations. So any continued higher price tailwinds are going to be a tailwind above what we're talking about on this call. So, you know, it could conceivably go higher than what we're, you know, it's why we gave the initial outlook the way we did. You know, I have to tell you, as you ask the question, and I look at it constantly, Bill, we've seen absolutely no demand destruction in any of our product lines. We're seeing the general market, the general business, start out very strong. We see continued bookings, shipments going through the months.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

I'm more encouraged than I had been on the general engineering, you know, with GDP, so I'm feeling better about that side of our business. Our packaging business, as I talked about, we can sell every pound we can make. Food business is up to the high single digits, year-over-year growth. And then when I look at what's going on, I know the market corrected, felt like, wow, those 232 tariffs were gonna fall off. All indications that we're getting are that what they're considering is more downstream type products, and not removing the tariffs, but perhaps loosening tariffs, but addressing the full end product versus just the raw material.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

And at this point, we really don't see those tariffs coming off, and even if we did, you know, we've commented, we're neutral to positive, slightly positive there. And we've said all along, while we appreciate and enjoy the tariffs, excuse me, some of the tailwinds we get from metal pricing, you know, we should state at any point, if we saw a rapid decline, those could turn into headwinds. And so we'll call those out, and that's why we remain super, uber focused on operational gains in our business, which we've highlighted here in our comments this morning.

Bill Peterson
Bill Peterson
Equity Research Analyst at JPMorgan

Well, I appreciate all those comments. I'll pass it on, but thanks for the call, and we'll look forward to following the progress and, you know, good luck on the execution ahead.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

Thank you, Bill.

Operator

Thank you. There are no questions in queue at this time. I would like to turn the call back to Mr. Keith Harvey for closing comments.

Keith Harvey
Keith Harvey
Chairman, President, and CEO at Kaiser Aluminum Corporation

All right. Well, thank you for joining us today. We're off to a strong start of the year, and we're excited for our 2026 prospects, and I look forward to sharing details on our continued progress in April. Have a good day.

Operator

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

Executives
Analysts
    • Bill Peterson
      Equity Research Analyst at JPMorgan
    • Kimberly Orlando
      SVP at Addo Investor Relations
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