Kaiser Aluminum Posts $62.5M Profit as Q1 Revenue Jumps 42% to $1.11 Billion

Kaiser Aluminum Corporation, a manufacturer of semi-fabricated specialty aluminum products, reported net income of $62.5 million for the first quarter of fiscal 2026, up 189% from $21.6 million in the same quarter of 2025. Diluted earnings per share came in at $3.71, up from $1.31 a year earlier. Read more earnings reports.

Revenue for the quarter ending March 31, 2026 reached $1.11 billion, a 42% increase from $777.4 million in the prior-year period. Operating income more than doubled to $97.8 million from $41.4 million, reflecting improved margins as the company scaled production.

Cost of goods sold rose to $943.2 million from $673.4 million, tracking with the revenue growth but leaving gross profit significantly higher. The company's operating margin expanded as revenue gains outpaced cost increases.

Balance Sheet Strengthens

Total assets climbed to $2.79 billion as of March 31, 2026, up from $2.56 billion at year-end 2025. Current assets increased to $1.49 billion from $1.26 billion, driven primarily by a $105.3 million jump in accounts receivable to $528.6 million and a $73.8 million increase in inventory to $799 million.

Cash and cash equivalents stood at $30 million at quarter-end, up from $7 million at the end of December 2025. Combined cash and restricted cash totaled $50 million, compared to $26.9 million three months earlier.

Accounts payable surged to $494.1 million from $274.6 million, reflecting the company's expanded production activity. Total liabilities increased to $1.91 billion from $1.74 billion, while long-term debt declined slightly to $1.04 billion from $1.06 billion.

Cash Flow and Capital Allocation

Cash from operations totaled $87.9 million for the quarter, up from $57 million in the first quarter of 2025. The company deployed $19.4 million in investing activities, down from $38.2 million a year earlier, while cash used in financing activities reached $45.4 million compared to $15.4 million in the prior-year period.

Stockholders' equity rose to $877.3 million from $826.1 million at year-end 2025. Retained earnings increased to $191.4 million from $142.5 million. The company declared a dividend of $12.8 million on April 13, 2026.

Common shares outstanding stood at 16.34 million as of March 31, 2026, up from 16.21 million at the end of December 2025. Weighted average diluted shares outstanding for the quarter were 16.84 million.

Key Financial Metrics

The company's income tax expense for the quarter was $19.9 million, up from $7.2 million in the prior-year quarter. Total liabilities and equity stood at $2.79 billion as of March 31, 2026.