Second Quarter 2026
Filed Aug 6, 2026Century Aluminum Company Reports Second Quarter 2026 Results
Sequential net sales, adjusted net income, and Adjusted EBITDA increased, supported by realized metal prices, shipments, sales mix, operating expenses, and power-price realization. GAAP net income declined sequentially because the first quarter included a one-time gain on sale of Hawesville of $287.9 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Aluminum shipmentsother | 130,632 tonnes | – | – |
| Net salesGAAP | $752.1 million | $102.9 million increase | – |
| Net income attributable to CenturyGAAP | $249.3 million | $88.2 million decrease | – |
| Diluted earnings per share attributable to CenturyGAAP | $2.39 | – | – |
| Adjusted net income attributable to Centurynon-GAAP | $257.3 million | $86.6 million increase | – |
| Adjusted earnings per common sharenon-GAAP | $2.46 | – | – |
| Adjusted EBITDA attributable to Centurynon-GAAP | $326.9 million | $95.5 million increase | – |
| Liquidity positionother | $784.9 million | – | – |
| Cash and cash equivalentsother | $343.4 million | – | – |
| Restricted cashother | $44.8 million | – | – |
| Combined borrowing availabilityother | $396.7 million | – | – |
| 2025 45X refundother | $94.3 million | – | – |
Third Quarter 2026 outlook
- NoteAdjusted EBITDA attributable to Century to range between $325 million to $345 million
What drove it
- Net sales increased sequentially primarily driven by an increase in realized metal prices and higher shipments attributable to increased production from the Mt. Holly expansion and restart of Line 2 at Grundartangi during the quarter.
- Adjusted EBITDA increased mainly from favorable realized metal prices, sales mix and operating expenses, and favorable power price.
- Completed restart of last 90 pots at Mt. Holly.
- Returned Line 2 at Grundartangi to near full production.
- New Jamalco power generation turbine (TG4) online in August.
Concerns
- GAAP net income declined sequentially primarily because of the one-time gain on sale of Hawesville of $287.9 million in the first quarter.
- Unfavorable raw material price realization partially offset favorable realized LME and regional premium prices and favorable power price realization.
- Second quarter results were impacted by $8.0 million of net exceptional items, including $61.3 million related to equipment failures in Iceland, net of tax.
- The release cited $38.9 million of unrealized gains on derivative instruments, net of tax, $2.5 million of share-based compensation and Mt. Holly expansion project expenses of $10.7 million as second-quarter result impacts.
What to watch
- Third quarter Adjusted EBITDA attributable to Century is expected to range between $325 million to $345 million.
- The timing for Grundartangi to return to 100% and the future impact of the equipment failure at Grundartangi and related events.
- The timing for Jamalco to return to full and normal operation following the restart after Hurricane Melissa.
- The availability of $500 million DOE funding for the new smelter project and the ability to raise additional capital to support construction.
- The likelihood of formalizing a joint venture with Emirates Global Aluminium for the new smelter project and the ability to secure power arrangements on commercially reasonable terms.
Balance sheet and cash flow
- Century's liquidity position at June 30, 2026 was $784.9 million, comprised of cash and cash equivalents of $343.4 million, restricted cash of $44.8 million, and $396.7 million in combined borrowing availability.
- Received 2025 45X refund totaling $94.3 million in July.
- As of the end of July, Century cash exceeded total debt.
Analysis
Century reported a sequential improvement in operating performance in the second quarter of 2026. Net sales were $752.1 million versus $649.2 million in the first quarter, while aluminum shipments were 130,632 tonnes versus 122,865 tonnes. The company attributed the sales increase to higher realized metal prices and increased production from the Mt. Holly expansion and the restart of Line 2 at Grundartangi.
Profitability was mixed on a GAAP basis but improved materially on the company’s adjusted measures. Net income attributable to Century was $249.3 million, down from $337.5 million, principally because the prior quarter included a one-time gain on sale of Hawesville of $287.9 million. Adjusted net income attributable to Century rose to $257.3 million from $170.7 million, and Adjusted EBITDA attributable to Century rose to $326.9 million from $231.4 million.
The EBITDA increase reflected favorable realized metal prices, sales mix, operating expenses and power-price realization, partially offset by unfavorable raw material price realization. The release also identified $8.0 million of net exceptional items and cited equipment failures in Iceland, unrealized derivative gains, share-based compensation and Mt. Holly expansion project expenses among the impacts on second-quarter results. Production execution improved with the restart of the last 90 pots at Mt. Holly and Line 2 at Grundartangi returned to near full production.
Liquidity at June 30, 2026 was $784.9 million, including $343.4 million of cash and cash equivalents, $44.8 million of restricted cash and $396.7 million of combined borrowing availability. The company also received a 2025 45X refund totaling $94.3 million in July and stated that cash exceeded total debt as of the end of July. No capital-return activity was reported in the provided filing text.
For the third quarter of 2026, Century expects Adjusted EBITDA attributable to Century to range between $325 million to $345 million. That outlook centers on maintaining the second-quarter adjusted earnings level while the company monitors raw-material pricing, power availability and pricing, recovery from Iceland equipment failures, and operating progress at Grundartangi and Jamalco.
Not in the filing
stated, not guessed- Prior-year values and year-over-year changes for all reported metrics
- Gross profit and gross margin
- Operating income and operating margin
- Total operating expenses
- Income tax expense and tax rate
- Cash flow from operating activities
- Free cash flow
- Capital expenditures
- Total debt amount
- Net debt
- Share repurchases
- Dividends
- Segment revenue, segment profitability and segment comparisons
- Third-quarter revenue guidance
- Third-quarter gross-margin guidance
- Third-quarter operating-expense guidance
- Third-quarter tax-rate guidance
- Reconciliation of third-quarter Adjusted EBITDA to the corresponding GAAP measure
- Named executive commentary or named executive quotes
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.