Century Aluminum (NASDAQ:CENX) Posts Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• Century Aluminum beat earnings expectations: Quarterly EPS was $2.46, exceeding the $2.33 consensus by $0.13, while revenue rose 59% year over year to $752.1 million but fell short of the $817.15 million estimate.
• Operational performance and outlook improved: Shipments increased 6% sequentially, adjusted EBITDA reached $327 million, and management forecast Q3 adjusted EBITDA of $325 million to $345 million after completing the Mount Holly expansion and restarting Grundartangi Line 2.
• Shares gained 11.5%, though analyst sentiment remains mixed: The balance sheet strengthened with $388 million in cash and no revolver borrowings, but analyst ratings produced a consensus “Hold” rating and an average price target of $76.

Century Aluminum (NASDAQ:CENX - Get Free Report) announced its earnings results on Thursday. The industrial products company reported $2.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.33 by $0.13, FiscalAI reports. The company had revenue of $752.10 million during the quarter, compared to analysts' expectations of $817.15 million. Century Aluminum had a net margin of 22.63% and a return on equity of 38.74%. The company's revenue was up 59.0% on a year-over-year basis.

Here are the key takeaways from Century Aluminum's conference call:

• Positive Sentiment: Century completed the Mount Holly expansion and restarted Grundartangi Line 2, bringing all major assets to full or near-full capacity. Mount Holly’s full production benefit will begin appearing in Q3, although post-restart instability is expected to weigh modestly on that quarter.
• Positive Sentiment: Q2 shipments rose 6% sequentially to approximately 131,000 tons, while adjusted EBITDA increased to $327 million on stronger aluminum prices, regional premiums, and higher volumes. Management expects Q3 adjusted EBITDA of $325 million–$345 million.
• Positive Sentiment: The balance sheet strengthened materially, with $388 million of quarter-end cash, $66 million of debt repayment, no revolver borrowings, and cash exceeding total debt by the end of July. Lower growth capital spending and expected working-capital recovery should support stronger second-half cash conversion.
• Positive Sentiment: Management highlighted a favorable aluminum market, citing an expected global deficit of roughly one million tons in 2026, continued deficits in 2027, and historically low inventories. The company also expects Jamalco’s new turbine to reduce energy costs by roughly $20 per ton and provide greater power reliability.
• Neutral Sentiment: Century continues targeting a final investment decision and groundbreaking for its Oklahoma smelter by year-end 2026, with first hot metal expected by late 2029. The project has potential support from a $500 million DOE grant, financing discussions, the Hawesville stake, and a new tariff incentive, but final energy contracts, engineering, financing, and community concerns remain execution milestones.

Century Aluminum Stock Up 11.5%

Shares of CENX stock traded up $5.28 on Friday, hitting $51.23. The stock had a trading volume of 3,739,269 shares, compared to its average volume of 1,841,968. The stock's 50 day moving average is $49.67 and its 200-day moving average is $53.89. The firm has a market capitalization of $5.07 billion, a price-to-earnings ratio of 8.85 and a beta of 1.96. Century Aluminum has a 52-week low of $20.91 and a 52-week high of $70.43. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.36 and a current ratio of 2.30.

Analyst Ratings Changes

Several research firms have commented on CENX. Weiss Ratings cut Century Aluminum from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, July 21st. Wall Street Zen lowered Century Aluminum from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 4th. B. Riley Financial cut their price objective on Century Aluminum from $86.00 to $74.00 and set a "buy" rating on the stock in a report on Tuesday, July 7th. Zacks Research downgraded shares of Century Aluminum from a "hold" rating to a "strong sell" rating in a research report on Wednesday, July 8th. Finally, Wells Fargo & Company lifted their price target on shares of Century Aluminum from $77.00 to $79.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $76.00.

Hedge Funds Weigh In On Century Aluminum

A number of institutional investors have recently added to or reduced their stakes in the company. Kestra Advisory Services LLC purchased a new position in Century Aluminum in the fourth quarter valued at about $164,000. ANB Bank purchased a new stake in Century Aluminum during the 4th quarter worth approximately $243,000. Systematic Alpha Investments LLC purchased a new stake in Century Aluminum during the 4th quarter worth approximately $243,000. Meeder Asset Management Inc. acquired a new position in shares of Century Aluminum in the 4th quarter valued at approximately $176,000. Finally, Vise Technologies Inc. purchased a new position in shares of Century Aluminum during the 3rd quarter valued at approximately $208,000. Institutional investors and hedge funds own 61.59% of the company's stock.

Century Aluminum Company Profile

Century Aluminum Company is a primary aluminum producer that develops and operates smelters designed to supply low-carbon, high-purity aluminum products to a range of industrial and commercial markets. Established in 1995, the company has grown to become a significant North American aluminum producer with an expanding international footprint. Century Aluminum is headquartered in the United States and is focused on energy-efficient operations and cost management.

The company's core operations include three primary aluminum smelting facilities located in Hawesville, Kentucky; Mount Holly, South Carolina; and Grundartangi, Iceland.

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