Kaiser Aluminum Forecasts More Than $200 Million in 2026 Free Cash Flow

Kaiser Aluminum expects 2026 free cash flow to exceed $200 million while keeping its adjusted EBITDA growth outlook at 45%–55%, with results expected near the lower end of that range.

CFO Neal West gave the full-year cash-flow forecast during Kaiser’s earnings call Thursday, Oct. 22, which began at 10 a.m. ET (14:00 UTC). The company generated $72 million in free cash flow in the third quarter and $176 million in the first nine months of 2026.

Kaiser defines free cash flow, a non-GAAP measure, as operating cash flow less capital expenditures. For the first nine months, operating cash flow was $248.1 million and capital expenditures were $72.2 million, leaving $175.9 million before rounding to the reported $176 million.

For the quarter ended Sept. 30, adjusted EBITDA increased 3% year over year to $84 million. Conversion revenue rose 25% to $439.1 million, while net income totaled $31 million, or $1.84 per diluted share.

Kaiser maintained its full-year adjusted EBITDA growth range of 45%–55% compared with 2025 but expects growth near the low end. Kaiser cited planned downtime, operating execution, customers adjusting inventories at year-end and pressure related to metal. The company also kept its 2026 conversion revenue growth outlook near the high end of its 10%–15% range.

Kaiser said lower scrap use raised metal consumption costs, while operating inefficiencies and packaging roll-coat start-up costs also contributed to roughly 640 basis points of third-quarter adjusted EBITDA margin pressure. The efficiency impact primarily reflected a planned partial outage at the Bellwood facility.

Kaiser makes semi-fabricated aluminum products for aerospace and high-strength applications, packaging, general engineering and automotive markets. Its conversion revenue measure excludes hedged alloyed-metal costs, separating processing revenue from metal costs passed through to customers.

Chairman, President and CEO Keith A. Harvey said, “Our results reflected continued strength in customer demand, improved Conversion Revenue, and favorable pricing and product mix.” Adjusted EBITDA is also a non-GAAP measure.