CENX

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Vice President of Finance and Treasurer - Chad Grigg President and Chief Executive Officer - Jesse E. Gary Executive Vice President and Chief Financial Officer - Peter A. Trpkovski Operator: Hello, everyone. Thank you for joining us, and welcome to the Sentry Aluminum Company Second Quarter 26 Earnings Conference Call. After today's prepared remarks, we will host a Q&A session. If you would like to ask a question, please press *, and 1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Chad Grigg, Vice President of Finance and Treasurer. Please go ahead. Chad Rigg: Thank you, operator. Good afternoon, everyone. And welcome to the second quarter conference call. I am joined here today by Jesse E. Gary, Century's President and Chief Executive Officer. And Peter A. Trpkovski, Executive Vice President and Chief Financial Officer. After our prepared comments, we will take your questions. As a reminder, today's presentation is available on our website. At www.centuryaluminum.com. We use our website as a means of disclosing material information about the company and for complying with Regulation FD. Turning to slide 2, Please take a moment to review the cautionary statements with respect to forward-looking statements and non GAAP financial measures in today's discussion. And with that, I will hand the call to Jesse. Jesse E. Gary: Thank you, Chad, and thanks to everyone for joining. I will start today by reviewing our second quarter operational performance. Including the completion of the Mt. Holly expansion and the restart of Potline 2 at Grundartangi, before turning to the continued strong market conditions we are operating in today. Pete will then walk you through our Q2 results and Q3 outlook, before I conclude the call with the latest on our new Oklahoma smelter project and on President Trump's important new executive order incentivizing companies like Century that are building new American aluminum capacity. Before we get into the quarter, I want to thank the Century team across all of our sites for another strong quarter of safety performance. Over the last 6 months, our teams have executed 2 major capital projects on 2 continents. All while welcoming hundreds of new employees into our plants. And they did it safely. That is not luck. It is a product of planning, discipline, and a workforce that looks out for 1 another. Thank you to each of you. Turning to page 4. When we spoke with you in May, I told you that by the end of July, for the first time in over a decade, all Century assets should be operating at full capacity. I am very proud to report today that our team has delivered on that commitment. At Mount Holly, we completed the restart of the final 90 POTS in late June. On time and on budget. Returning the plant to full capacity. This project increases total US aluminum production by nearly 10% and has added over 150 full-time American manufacturing jobs to the plant. We were proud to host U.S. Commerce Secretary Howard Lutnick and South Carolina attorney general Alan Wilson to the plant last week to celebrate this major achievement. At Grundartangi, we completed the restart of Line 2 at the end of July. Roughly 6 months ahead of the timeline we first shared with you last October. It is worth taking a step back for a moment. 10 months ago, we had just lost a potline in Iceland following an unprecedented transformer failure. Mount Holly was running at only 75% capacity. Today, both plants are producing at full capacity into a market that needs every unit we can produce. That turnaround was accomplished by our operations and technical teams working across time zones in parallel on 2 of the most complex projects this company has undertaken. Congratulations to all of you. This is a remarkable achievement, and you should be proud of it. Staying with page 4 in operations, we saw strong performance across the portfolio in the second quarter while executing this level of major project work. At Mount Holly, the ramp up progressed on schedule throughout the quarter. With the plant reaching full production at the end of June. As a reminder, because of the incremental nature of the restart, Q2 reflects only a partial quarter of the expanded run rate. We will see the full benefit of these tons for the first time in Q3. Note that we have seen some instability of the plant following the restart. This is not unusual following a restart of this size. The team is working through it, and the impact is included in your Outlook. Note that we do not expect any impact beyond Q3 and the project remains fully on track to repay its capital costs by the end of 26. At Grundartangi, the Line 2 restart went smoothly, and the plant is now close to full production. As we discussed last quarter, we are running Line 2 at slightly reduced amperage until our new replacement transformers arrive and are installed in the fourth quarter. We are being deliberately conservative here to avoid putting undue stress on the units, and the team has managed that balance well. At Jamalco, we brought our new power generation turbine known as TG 4 online at the beginning of August. This is an important milestone. TG 4 allows us to run Jamalco on entirely self generated energy eliminating expensive, as we learned last winter, sometimes unreliable purchases from the Jamaican grid. The full benefit will phase in over the balance of the year and is as significant step change in the gemelco cost structure. Nice work by the Jamalco team in getting this 1 across the line. As we discussed last quarter, refinery does continue to see lower quality bauxite from certain of its mining areas. The team has the revised mining plan in place and is working through it. But we expect this will take another couple of quarters to fully implement. In the meantime, it remains a modest headwind to Jamalco's cost and volumes, and Pete has reflected that in our outlook. Finally, Sebree delivered another excellent quarter. This plan has now strung together quarter after quarter top tier operating and financial performance, and it continues to set the standard for the rest of the portfolio. Great work again by the entire Sebree team. Before I hand things to Pete, let's spend a few minutes on the market. Starting on page 5. The short version is that we are bringing these additional tons from Mount Holly and Grundartangi into a strong a market as this industry has seen in a very long time. Following the limited reopening of the Strait of Hormuz, prices have now returned to preconflict levels. LME is approximately $3.25 thousand per ton today, The US Midwest premium is approximately $1.11 per pound. And the European duty paid premium is approximately $500 per ton. The market continues to evaluate what is happening in the Gulf. Restarts have only been announced at EGA, and that is a welcome development for our friends there. But we have not yet seen restart announcements in Bahrain or Qatar, and I would be careful about assuming that the production levels in the Gulf as a whole will come back quickly. Restarting curtailed potlines is slow and difficult work. We know that better than most, having just done it twice ourselves. And these plants are doing it while their raw material supply chains are still not fully normalized. We do not have good visibility into how long it will take, nor can any of us say with confidence what further disruption to transit through the Strait would do to those timelines. On the demand side, The US picture is as strong as we have seen it in years. Monday's ISM manufacturing report for July came in well above expectations. The seventh consecutive month of expansion and the strongest reading since May of 2022. That is the strong environment our customers are operating in, we are seeing it directly when we speak with them. Aluminum demand is being driven by the power and data infrastructure build out. By commercial aerospace, and by defense and rearmament programs. As well as the continued reshoring of extrusion and downstream fabrication following President Trump's April action closing the valuation loopholes in the 232 program. When you take the supply and demand picture together, we continue to expect a global deficit of around 1 million tons this year. And we would expect deficit conditions to continue in 2027. With Middle Eastern smelters producing materially less metal in 2026 than they otherwise would have, A large portion of that shortfall is now locked in. No matter how the restarts go from here. You cannot make up lost tons in a market that was already short. The result is visible in the inventories. Global days of consumptions held in inventory have now fallen through the post financial crisis lows we have referenced on prior calls and are approaching all time lows. With deficits persisting through the balance of this year and into next, we expect that drawdown to continue. there is very little cushion left anywhere in the system. In a market with no slack, the value of secure domestic units goes up. And with the completion of both restarts, Century now has more of them to sell in both the US and EU markets. Peter will now take you through our second quarter financial performance and Q3 outlook. Peter A. Trpkovski: Thank you, Jesse. I will begin with the review of our Q2 financial performance and provide an update on the Mt. Holly expansion and restart of Grundartangi Line 2. Along with an update on cash flow for the business. Lastly, I will share our Q3 outlook. Turning to Slide 8. On a consolidated basis, second quarter shipments totaled approximately 131 thousand tons, a 6% increase from the prior quarter due to an additional production from the restart of Line 2 in Iceland and the Mt. Holly expansion. Net sales for the quarter were $752 million, a $103 million increase sequentially primarily due to higher realized LME and regional premiums as well as higher shipments. For the quarter, we reported net income of $249 million or $2.39 per share. Our adjusted net income was $257 million or $2.46 per share. Excluding exceptional items. Exceptional items included the unrealized gains on our derivative contracts, business interruption losses in Iceland, and restart expenses at Mt. Holly. Adjusted EBITDA for the quarter was $327 million primarily attributable to higher LME regional premiums and increased volume resulting from expanded output at Mt. Holly. During the quarter, we continued our efforts to enhance the balance sheet. Our cash balance stood at $388 million at the end of June. We continue to prioritize debt reduction, with $66 million in debt repayments in the quarter, resulting in no outstanding borrowings on our credit facilities at the end of the quarter. Net debt was reduced to $98 million. And as of the end of July, our cash position exceeded our total debt. More on that in a couple of minutes. Turning to page 9. Adjusted EBITDA for the second quarter increased $96 million to $327 million. Realized LME was $3.25 thousand per ton, up $350 versus prior quarter, Our realized US Midwest premium was 2.48 thousand per ton, up $280, and higher European premium of $450 per ton was a $140. Taken together, LME and regional premiums pricing contribute an incremental $95 million compared with the prior quarter. Energy costs returned to normalized levels after winter, and raw material costs were higher. As anticipated. Volume and sales mix were up $8 million over prior quarter, This increased production volume was expected from our expansion at Mt. Holly, However, shipments at quarter end were affected by cutoff timing. This resulted in a sequential increase in finished goods inventory related to the Mt. Holly expansion. We expect that inventory to ship in Q3 and I will cover that in more detail shortly. As anticipated on our last call, operating expenses increased over prior quarter driven by the Mt. Holly expansion reflecting the 100% capacity run rate. Now let's turn to slide 10 for a look at cash flow. We began the quarter with $332 million in cash. We generated strong cash from operations during the quarter. We continue to accrue the 45X tax credit quarterly, with cash receipts following the filing of our annual tax return. In Iceland, we continue to have a cash impact as the insurance recoveries on the Line 2 loss profits lag on a quarterly basis. In the quarter, we received $46 million related to previous lost profit margin. Quarterly CapEx totaled $59 million, of which $37 million was related to the investment for the Mt. Holly expansion, and our new power generation unit TG 4 at Jamalco. We had $30 million in hedge settlements during the quarter. Cash interest for the quarter was roughly $5 million We had a working capital build this quarter as the expansion at Mt. Holly increased our working capital back to a 100% capacity as well as increased finished goods inventory that I mentioned earlier as a result of shipment timing. We expect to recoup cash from some of this finished goods inventory into Q3. We repaid $66 million related to our Icelandic revolver in Q2 and ended the quarter with no borrowings on our revolving credit facilities. We ended Q2 with $388 million in cash, and strong liquidity in place. As discussed, many of these items will convert to cash in future quarters. For example, at the end of July, we received $94 million in cash for 45X tax credits outstanding related to fiscal year 25. We also received $19 million in July for the Grundartangi insurance recoveries. All told, Century's balance sheet has never been stronger. With all short term debt repaid, And as of today, Century's cash on hand exceeds its total debt. Going forward, we are expecting even stronger cash flow conversion as investment CapEx related to the Mt. Holly and Grundartangi restarts are now complete. Just leaving primarily sustaining CapEx over the second half of the year. Now let's turn to slide 11, and I will have a look ahead to the next 90 days. For Q3, lagged LME of $3.33 thousand per ton is expected to be up about $75 versus Q2 realized prices. The Q3 lagged US Midwest premium is expected to be $1.09 per pound down 3 cents versus Q2 realized prices. The European duty paid premium is expected to be approximately $520 per ton in Q3 or up about $70 per ton. Taken together, the lagged LME and delivery premium changes are expected to have a $5 million to $10 million increase to Q3 adjusted EBITDA when compared with Q2 levels. We expect energy headwinds of $10 million to $15 million as we typically see due to warmer summer weather. Looking at our other raw materials, we continue to see moderate increases in our input costs. We see a small headwind of $5 million sequentially. We expect OpEx to be flat in the third quarter. Volume and sales mix is expected to improve $15 million to $25 million with increased production and shipments at Mt. Holly. All told, at expected realized prices, we expect Q3 adjusted EBITDA in the range of $325 million to $345 million Consistent with prior practice, we also include the estimated hedge and tax impacts to help model our business at the bottom of the page. We expect the $20 million to $25 million headwind from realized hedge settlements and $10 million to $15 million tax expense. Both flowing through our Q3 P&L and impacting adjusted net income and adjusted earnings per share. And with that, I will hand the call back to Jesse. Jesse E. Gary: Thank you, Pete. Before I turn to Oklahoma to finish the call, a brief word on Hawesville, which you can see on page 13. When we sold the site in February, we received $200 million in cash and retained a 6.8% non-dilutive interest in the completed data center. Since then, the project's taken a significant step forward. Our partner, TeraWulf, has signed Anthropic as a data center tenant to a 20 year lease that is expected to generate lease revenue of approximately $19 billion in total over its initial term. Energization is still expected in the second half of 2027, and our right to put our share in the data center back to TeraWulf becomes exercisable 1 year after that. We told you in February that we believe the stake would be worth well in excess of our initial cash proceeds. Assigned 20 year lease with 2 5-year extensions and a high quality tenant goes a long way towards proving that out. And Century has no obligation to fund any part of the development cost. The anticipated monetization timeline of our 6.8% stake lines up reasonably well with the construction in Oklahoma. Making it a further potential source of capital to help fund Century's share of that project if needed. Okay. Turning finally to our new Oklahoma smelter project with our joint venture partner, Emirates Global Aluminum. We made further progress in the second quarter. Bechtel continues its detailed engineering work. We advanced negotiations toward a final energy contract and we made significant progress on the financing for the smelter. Those 3 items the final energy contract, detailed engineering, and financing are the near term milestones we are focused on. And we continue to expect FID and groundbreaking by the end of this year. With first hot metal by the end of 29. That brings me to page 12 and to what I think is the most important policy development of the quarter. On July 20, President Trump issued a new executive order establishing an incentive for companies that build or expand primary aluminum production here in The United States. Under the program, approved companies will be able to annually import primary aluminum up to the amount of the new production they are building at a reduced tariff rate of 25%. Versus the 50% rate that would otherwise apply to imports. I want to underline what this represents. The section 32 program first leveled the playing field for American producers and workers. In April, the Trump administration closed evaluation loopholes that importers had been using to get around it. And now with this order, the program goes a step further and actually incentivizes the companies that are putting capital in the ground to build new American capacity. Each step is built on the last, and each has been enforced with no exceptions and no exemptions. For CENTURY, the effect is direct. We expect the Oklahoma project to be approved under the program to import up to 750 thousand metric tons at the reduced 25% rate beginning in 2027. That will be split 60% to EGA and 40% to Century. That means Century could begin importing up to 300 thousand metric tons per year at the reduced rate. Starting in 2027. And we intend to apply that benefit to help fund Century's share of the Oklahoma project. This is another well designed piece of policy and we are grateful to President Trump and his team for their support and commitment to restoring production of American aluminum. Taken together, a balance sheet where our cash now exceeds our total debt the tariff benefit under the new executive order, and the value we have created at Hawesville. Century has real and growing balance sheet capacity to fund its share of the Oklahoma project as well as to pursue other opportunities and priorities to create best in class value for our shareholders. To wrap up, earlier this year, we said we would have every asset running full by the end of July, and we did it. Next, we intend to bring the first new American smelter in nearly 50 years out of the ground. No company is investing more to restore American primary aluminum production than Century. We are already the largest producer of aluminum in The United States, We employ more American primary aluminum workers than any other company. And thanks to President Trump's leadership and the Section 232 program, we are investing billions more in new and expanded production in Mount Holly and in Oklahoma. We are laser focused on execution. We thank you for your time. We look forward to taking your questions today. Operator? Operator: We will now begin the Q&A Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. The first question comes from the line of Nick Giles with B Riley Securities. Line is now open. Nick Giles: Yeah. Thanks, operator. Good afternoon, guys. Just first wanted to ask about the executive order kind of, where you will ultimately source the metal and just how you value this benefit in terms of EBITDA and cash flow? Thanks. Jesse E. Gary: Hey, Nick. Yeah. As I mentioned, the executive order is very important. And provides a nice opportunity, for Century and, of course, anyone else who is investing in new US aluminum production. For us, there will be a number of different sources we believe we will be able to source the metal from. Obviously, our own resources in Iceland but we anticipate also other sources. But what we will do is commerce will ultimately promulgate some rules for the EO. And we will wait for those to come out, and then we will give you know, the final analysis there. Just to scope the opportunity for us, again, you know, we will wait for the final opportunities to get part numbers here. You can just simply take that reduced tariff level So if we are paying 25% versus the 50%, kind of quick rule of thumb, you just take that choose your LME. So today, we are at $32.50. Apply that. That will give you a sense of the benefit per ton. And then Century will be should be able to import our share of the new production, which is 300 thousand tons. And you just multiply those together, and you can see it would be quite material. The benefit should be the same on both the EBITDA and cash flow side there. Nick Giles: Got it. No. Thanks, Jesse. that is very helpful. Maybe just on the project itself. it would be good to get an update on the DOE grant, when you would expect for us to have more information there. And then maybe just on financing sources more broadly, what kind of work is ongoing today in terms of project financing? And, you mentioned stake as well at Hawesville. Curious for your thoughts there. Thanks. Jesse E. Gary: Sure. Just a reminder on the DOE grant. So that is secured. Of course, there are a number of milestones that we need to work through for the project. And DOE, to release that grant. But the grant pays out basically dollar for dollar for investments that we make into the project. To release that $500 million. So really no change from what we have told you before Everything remains in place there. All looks good. On the broader financing picture, we are working on a number of different potential sources. Once those are secure, we will obviously come out to you with the details. But we are talking with a number of parties and that includes some potential government sources of financing. Operator: The next question comes from the line of Katja Jancic with BMO Capital Your line is now open. Katja Jancic: Hi. Thank you for taking my question. Jesse, you mentioned multiple there are multiple sources of potential cash to finance the smelter. And your free cash flow conversion is expected to improve from here Can you talk about a bit about how you are thinking about shareholder returns at this point, especially with your balance sheet being in a very good place? Jesse E. Gary: Absolutely. So if you just look at slide 22, you, as you mentioned,, we have had some very strong cash flow generation already. As Pete mentioned, we after the quarter, we did receive our $94 million 45 x refund as well as another nearly $20 million in insurance recoveries, which put us in a position where our cash exceeds our total outstanding debt. As of the end of July. And you can see also our liquidity $785 million. Significantly exceeds our target. So the balance sheet is in a good position, and we anticipate keeping it in a very good position and we have got a lot of opportunity with a lot of cash flow coming in to do so. Did tell you we would come back to you on capital returns once we clear these targets, and we will. But what we have also said is we have a clear priority for capital allocation. Of course, that is to maintain the liquidity through the cycle, then to ensure we have enough sustaining capital, and then we would look first to organic growth opportunities. Obviously, the new smelter in Oklahoma falls into that category. And what we just ask is as we are proving out the final details there, so we are working through the final engineering numbers and CapEx numbers, and getting the FID. if people remain patient with us. But we do fully anticipate that we will find ourselves in a position where we have plenty of cash to finance the smelter including our equity piece, and also to pursue other priorities whatever those may be, and, of course, including capital returns. Katja Jancic: And maybe shifting gears a little bit to Iceland. In Q4, you are going to install the new transformers will that impact production volumes, or how should we think about that? Jesse E. Gary: Yeah. So as I said on the call, we are now back to close to full production, but we are being a little bit conservative with the amount of amperage that we are running through the repaired transformers. This is not--this is not we are not talking huge amounts. We are we are pretty close to full production. But once we do get those new transformers installed in Q4, you should see us increase the amperage, which will further increase the volume coming out of Grundartangi, and you will see it return back to that normalized run rate that you saw before the interruption, that full normalized run rate. Peter A. Trpkovski: And I can just add, Katja. I think maybe your question was when we start installing them and putting those into service, will we have any interruption of production. And because of the redundancy we will have with the repair transformers, we will come back to you in 3 months and give you our Q4 outlook, but I would not expect interruption to production. sitting here today any interruption to production. Jesse E. Gary: No. No. There should not be any The next question comes from the line of Timna Tanners with Wells Fargo. Operator: Your line is now open. Timna Tanners: Yeah. Hey. Good afternoon. I wanted to ask about Mt. Holly first off. You did not mention them as a potential beneficiary of the new executive order with the 50 thousand ton restart. So is that not potentially eligible, or is it? And then also regarding that I think, Pete, at Mt. Holly, can you quantify the instability and the impact into Q3? Jesse E. Gary: No. Because we are now complete with Mount Holly and that new production is coming out, We do not anticipate that being eligible. The program is designed to allow as we understand it at least today, and as allowed, it is designed to allow imports during the dependency of investment while new production is coming online. But then once it is online, you cannot bring in additional imports. So Mount Holly, given that it is done, we do not anticipate it being eligible today. Peter A. Trpkovski: The instability as I said, that is this is something that sometimes happens during restarts. Of course, a plant is sort of used to operating at a lower level of production, and some of the corollary areas of the plant suddenly need to operate a higher level of production. Have more metal going through the cast house. You have more anodes being produced in the carbon area. Sometimes you get a little instability there. This is nothing material. it is in our Q3 guide. It does have some impact on Q3, Timna. But we do think we will get it fully resolved in Q3. So then you should actually get a little bit more volume coming back in Q4 than what you are seeing already in 3? Timna Tanners: Okay. Helpful. Thank you. And my second question, if you could help us understand the dynamics in the new Oklahoma smelter, you know, being far away from the situation. We just see the headlines and some of the pushback and debates on the local level. Can you help us understand what is happening there and your conviction? It sounds like it is pretty clear for it moving forward, but we would just like to understand it from your perspective better, please. Jesse E. Gary: Sure. And, of course, you can understand the communities wanna understand what is going on when the major project gets announced in their area. And I think we are working very closely with the community, and I know elsewhere in Oklahoma to better understand what their concerns are and to make sure that they have all the facts about our technology and process. And then we are very confident that the smelter will pose no harm to anyone. And that everyone will be comfortable with what is going on and get to see the benefits to the state and to the local community of all of the investment and jobs that are created. I mean, we are talking very, very substantial benefits to everybody. But we are working closely to understand their concerns and to make sure that they get comfortable. Operator: The next question comes from the line of Matthew Key with Texas Capital. Your line is now open. Matthew Key: Good afternoon, and thanks for taking my question. You mentioned that you would be completing some power capacity at Jamalco in August. Was wondering if you could maybe help quantify the potential financial benefit there. Would you only experience cost benefits during times of like, an energy outage, or would this be a more sustainable benefit long term? Jesse E. Gary: it is really twofold, Matthew. So 1, as I mentioned, we will have the ability to be fully self sufficient in our energy generation within our foreign walls. In other words, we will be able to operate as an island within the island, if you will. But, of course, under normal circumstances, we will remain connected to the grid for stability reasons. But if there are problems in the grid, then we will be able to operate as an island. The other part of it is the cost savings. So energy is expensive. In The Caribbean, of course. And we will be able to generate energy ourselves through t g 4 that is fully meets our energy needs. So we will be able to stop those grid purchases going forward. From the beginning of August. And you will see savings. Of course, it depends on where market prices are in Jamaica, what those savings are. But if you kind of think of about a $20 per ton benefit there, that would get you close. Peter A. Trpkovski: And I would just add, Matthew, yep. I already reflected that in the outlook for you. On the Q3. Matthew Key: Got it. Okay. that is it for me. Best of luck moving forward. Jesse E. Gary: Thank you, Matt. Operator: The next question comes from the line of Nick Giles with B. Riley Securities. Your line is now open. Nick Giles: Thanks for taking my follow-up. I just was curious, and sorry if I missed this, if you could just kind of outline some of the working capital unwind and just cash flow considerations in the second half, whether it be on the insurance or other side? Thanks. Peter A. Trpkovski: Yeah. Sure, Nick. I can take that. To start. I talked a little bit about the working capital build this quarter in the second quarter. it is--I did not quantify the breakdown, but if you just think of it as 2 buckets. 1, we brought back Mount Holly and the expansion to a 100% capacity, so you kind of got supplies and inventory growth there in receivables to sort of reflect that. And then you also had because of the production increase, we had the conversion of shipments and quarter end is a snapshot in time. So we had some cutoff timing of those shipments. So that was the working capital build in Q2. And I would say going forward, obviously, you are you are not gonna get back working capital you need to operate Mt. Holly at 100%. But, certainly, you will get back a good portion of those finished goods inventory sitting on the balance sheet at the end of Q2. In Q3. So that should be a good tailwind of cash And then really just going forward on cash flow conversion, like I said in my remarks, expecting that to convert even stronger than what we had been thus far. As we continue. Like I already said, we have the $94 million from 45 x credit. We got additional $20 million on the insurance recovery. Continue to work on that. And then the growth CapEx really falls off. You know, we are we are we are complete on the Mt. Holly expansion. We are complete on bringing Line 2 back on in Iceland. And we should only really have sustaining CapEx going forward. So just given where we are on the balance sheet, I think you will see that strong cash flow conversion going forward. Nick Giles: Got it. No. that is really helpful, Pete. Maybe just back to Oklahoma. Was curious for any update that you might have on just the power contract negotiations. Are there any gating items that you could call out? Or when should we expect to see that finalized, ahead of the ultimate FID and groundbreaking later this year? Jesse E. Gary: Yeah, Nick. We continue to work really well with our counterparty there. Both with our partners, EGA, but also with the utility counterparty. In progressing that work. We are making progress These are complex contracts. They do take some time. To get fully negotiated through the lawyers and all of that. But I would just say things continue to move forward well and make good progress. Of course, we will have that done before we make FID, but I do not really wanna handicap it further for now. Just know that we are working hard and continue to make progress. Operator: There are no further questions at this time. I will now turn the call back to Jesse E. Gary for closing remarks. Jesse E. Gary: Thank you, everyone, for joining the call today. We are proud of the quarter. We look forward to Q3 and what is next to come for Sentry. Thanks a lot. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Century Aluminum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Century Aluminum wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Century Aluminum (CENX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Century Aluminum Company CENX reported earnings of $2.39 per share for the second quarter of 2026. It compares favorably with the prior-year quarter’s loss of 5 cents per share. The bottom line missed the Zacks Consensus Estimate of $2.40. Adjusted EBITDA was $326.9 million, up from $74.3 million in the prior-year quarter. Century Aluminum Company price-consensus-eps-surprise-chart | Century Aluminum Company Quote The company reported net sales of $752.1 million, up 19.7% year over year. The figure missed the Zacks Consensus Estimate of $835.3 million by around 10%. The increase in sales was primarily driven by higher realized metal prices and higher shipments sequentially, supported by increased production from the Mt. Holly expansion and the restart of Line 2 at Grundartangi. Primary aluminum shipments were 130,632 tons, down around 25.7% year over year but up around 6.3% sequentially. At the end of the quarter, the company had cash and cash equivalents of $343.4 million, up 40.7% from the previous quarter. The company forecasts third-quarter 2026 adjusted EBITDA attributable to Century in the range of $325 million to $345 million. Shares of Century Aluminum have risen 104.5% in the past year compared with the industry’s 37.2% growth. Image Source: Zacks Investment Research CENX currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Flowserve Corporation’s FLS second-quarter 2026 adjusted earnings of 95 cents per share beat the Zacks Consensus Estimate of 86 cents by 10.5%. The bottom line increased 4.4% year over year. Flowserve now expects organic sales to decline approximately 1% compared with the previous expectation of a 1% decline to 2% growth. FLS raised the low end of its adjusted earnings guidance and now expects adjusted earnings per share of $4.05-$4.20 compared with the earlier range of $4.00-$4.20. DNOW Inc. DNOW reported second-quarter 2026 adjusted earnings of 12 cents per share, down 55.6% year over year but beating the Zacks Consensus Estimate of 8 cents by 50%. For the third quarter, DNOW expects revenues to increase in the low-to-mid single-digit percentage range sequentially. Adjusted EBITDA margin is projected between 5% and 5.5% of revenues. IDEX Corporation IEX delivered second-quarter 2026 adjusted earnings of $2.32 per share, topping the Zacks Consensus Estimate of $2.10. IEX raised its full-year 2026 guidance, projecting organic sales growth of 5-6% compared with prior expectations of 3-4%. IDEX also lifted its full-year adjusted earnings outlook to $8.70-$8.85 per share from $8.35-$8.55 previously. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Century Aluminum Company (CENX) : Free Stock Analysis Report Flowserve Corporation (FLS) : Free Stock Analysis Report IDEX Corporation (IEX) : Free Stock Analysis Report DNOW Inc. (DNOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Century Aluminum (CENX) posted Q2 2026 results on August 6, with revenue of $752.1 million and net income of $249.3 million, compared with a net loss in the prior year period. The first half of 2026 also showed higher revenue of $1,401.3 million and net income of $586.8 million, compared with much lower profit a year earlier, giving investors new financial data to assess the stock. See our latest analysis for Century Aluminum. Century Aluminum’s strong Q2 earnings and progress on bringing all its smelters to full capacity have coincided with an 11.49% 1-day share price gain and a 25.13% year-to-date share price return, while the 1-year total shareholder return of 122.64% shows powerful long-term momentum despite a 90-day share price decline of 14.87%. If this earnings reaction has you looking beyond a single aluminum producer, it may be a good time to scan other commodity linked opportunities using our focused screener for 8 top copper producer stocks Century Aluminum has just delivered a sharp earnings swing and a powerful 1 year share price run. After this jump, does the current valuation still offer an attractive balance of risk and reward for new buyers? Compared with the last close at $51.23, the most followed narrative puts Century Aluminum’s fair value at $74, which is a sizeable gap for investors to assess. Read the complete narrative. Want to understand why this narrative assigns such a high earnings and margin profile to Century Aluminum? The model leans on aggressive growth, richer profitability and a lower future P/E than many metals peers. The mix of volume, pricing and tax credits is doing the heavy lifting. The exact assumptions sit just beneath the surface. Result: Fair Value of $74 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Century Aluminum narrative still leans heavily on supportive U.S. tariffs and stable energy and raw material costs, which could shift and quickly reset expectations. Find out about the key risks to this Century Aluminum narrative. With Century Aluminum posting these latest results and such a wide fair value debate, the mix of potential risks and rewards is clearly in focus. If this leaves you curious rather than convinced, move quickly and review the full picture for yourself by weighing the 5 key rewards and 1 important warning sign. If Century Aluminum has sharpened your focus on new opportunities, do not stop here. Use the Simply Wall Street Screener today so you are not chasing the next move after it happens. Target dependable income streams by reviewing companies in the 8 dividend fortresses and see which payouts might fit your goals. Spot potential value opportunities early with the screener containing 19 high quality undiscovered gems before they sit firmly on everyone else’s radar. Prioritize resilience by scanning the 79 resilient stocks with low risk scores and compare businesses with steadier risk profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CENX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Century Aluminum Company CENX used its second-quarter 2026 earnings call to emphasize production restarts, balance-sheet strength and progress on its Oklahoma smelter. Reported earnings of $2.39 per share missed the Zacks Consensus Estimate of $2.4, while net sales of $752.1 million missed the $835.3 million estimate. Adjusted earnings were $2.46 per share. Century Aluminum Company price-consensus-eps-surprise-chart | Century Aluminum Company Quote CEO Jesse Gary said that Mt. Holly restarted its final 90 pots in late June, returning the plant to full capacity. Gary added that Grundartangi’s Line 2 restart was completed at the end of July, about six months ahead of the timeline outlined last October. The plant is near full production at reduced amperage until new transformers arrive. In response to a Wells Fargo analyst, CEO Jesse Gary said that Mt. Holly has experienced post-restart instability but expects it to be resolved in the third quarter, with volume improvement in the fourth quarter. CFO Peter Trpkovski guided third-quarter adjusted EBITDA attributable to Century to $325 million to $345 million compared with $326.9 million in the second quarter. Trpkovski expects lagged LME and regional premium changes to add $5 million to $10 million sequentially. Higher Mt. Holly production and shipments should contribute $15 million to $25 million through volume and mix. Trpkovski also expects $10-$15 million of seasonal energy headwinds, about $5 million of raw-material pressure and a $20-$25 million drag from realized hedge settlements. Gary described U.S. aluminum demand as the strongest Century has seen in years, citing power and data infrastructure, commercial aerospace, defense programs and reshoring of downstream fabrication. Gary expects a global aluminum deficit of 1 million tonnes in 2026 and deficit conditions to continue in 2027. He said that global inventory coverage is approaching all-time lows. Gary cautioned that curtailed Middle Eastern production may not return quickly because restarting potlines and normalizing raw-material supply chains take time. Century is bringing additional U.S. and Icelandic output into that environment. Gary said that detailed engineering, energy-contract negotiations and financing work are progressing for Century’s Oklahoma smelter project with Emirates Global Aluminum. He still expects a final investment decision and groundbreaking by year-end, with first hot metal by the end of 2029. Gary said that the secured $500 million Department of Energy grant remains in place, subject to project milestones. In a Q&A with a B. Riley Securities analyst, he added that Century is discussing other financing sources, including government funding. Gary expects the project to qualify for a new U.S. tariff incentive. Century could import up to 300,000 metric tons annually at a 25% tariff rate beginning in 2027, versus 50% otherwise, and use the benefit to help fund its share. Trpkovski said that Century ended the quarter with no borrowings on its revolving credit facilities. In July, it received $94 million in 45X tax-credit cash and $19 million in Iceland insurance recoveries, leaving cash above total debt. Trpkovski also said that working capital rose as Mt. Holly returned to full capacity and finished-goods inventory increased on shipment timing. He expects part of that inventory to convert to cash in the third quarter as growth capital spending declines. Asked by a BMO Capital Markets analyst about shareholder returns, CEO Gary said that Century remains focused first on liquidity, sustaining capital and organic growth. Capital returns remain a potential priority once Oklahoma’s engineering and financing needs are clearer. Gary’s closing message centered on execution after completing the Mt. Holly expansion and restoring Grundartangi Line 2. Attention now shifts to stabilizing output, improving cash conversion and advancing Oklahoma. Gary emphasized balance-sheet capacity and policy support as tools for funding Oklahoma while preserving flexibility for other priorities. CENX carries a Zacks Rank #5 (Strong Sell). It has a Value Score of C, a Growth Score of A, a Momentum Score of C and a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The A Growth Score and B VGM Score show favorable growth and blended style characteristics. However, the Zacks framework prioritizes the Rank, and a Zacks Rank #5 reflects declining earnings estimate revisions. The Rank can change as estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Century Aluminum Company (CENX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved full capacity across all assets for the first time in over a decade following the completion of the Mt. Holly expansion and the accelerated restart of Grundartangi Line 2. Capitalized on a global aluminum deficit of approximately 1 million tons, driven by supply constraints in the Middle East and robust demand from power, data infrastructure, and aerospace sectors. Improved the Jamalco cost structure by bringing the TG 4 power generation turbine online, enabling self-sufficient energy production and eliminating reliance on the Jamaican grid. Strengthened the balance sheet to a net cash position, with cash on hand exceeding total debt as of July, providing the capacity to fund the Oklahoma smelter project. Benefited from the reshoring of downstream fabrication following federal actions to close valuation loopholes in the Section 232 program. Managed operational headwinds at Jamalco related to lower quality bauxite, with a revised mining plan expected to take several quarters to fully implement. Expect to reach Final Investment Decision (FID) and groundbreaking for the new Oklahoma smelter by the end of 2026, with first hot metal targeted for late 2029. Anticipate a material financial benefit starting in 2027 from a new Executive Order allowing Century to import up to 300,000 metric tons at a reduced 25% tariff rate. Project continued global aluminum deficit conditions through 2027 as Middle Eastern production levels are expected to remain materially lower in the near term. Forecast Q3 adjusted EBITDA between $325 million and $345 million, accounting for increased volumes from Mt. Holly offset by seasonal energy headwinds of $10 million to $15 million. Plan to monetize a 6.8% non-dilutive interest in the Hawesville data center project, which recently secured a 20-year lease expected to generate $19 billion in total revenue. Reported a working capital build in Q2 due to the Mt. Holly expansion and shipment timing, which is expected to partially unwind and provide a cash tailwind in Q3. Identified minor operational instability at Mt. Holly following the restart, though management expects this to be fully resolved within the third quarter. Noted that Grundartangi Line 2 is currently running at reduced amperage to protect equipment until new replacement transformers are installed in Q4. Highlighted the receipt of $94 million in 45X tax credits in July, significantly boosting the company's liquidity position post-quarter end. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained the benefit is calculated as the difference between a 25% and 50% tariff rate applied to the LME price for up to 300,000 tons. Confirmed the benefit will impact both EBITDA and cash flow equally, with metal potentially sourced from Iceland or other international resources. Stated that while the balance sheet is at record strength, the primary priority remains maintaining liquidity and funding the equity portion of the Oklahoma smelter. Indicated that capital returns will be evaluated once final engineering and CapEx numbers for the new smelter are solidified. Acknowledged local community questions regarding the project and stated they are working to provide facts about the technology to ensure stakeholders of its safety. Expressed high conviction in the project's timeline, noting that power contract negotiations and detailed engineering are progressing toward a year-end FID.

Interested in Century Aluminum Company? Here are five stocks we like better. Strong second-quarter results: Shipments rose 6% sequentially to about 131,000 tons, while sales increased to $752 million and adjusted EBITDA climbed to $327 million, supported by higher aluminum prices, premiums and volumes. Production capacity expanded: Century completed the Mount Holly restart and restarted Line 2 at its Grundartangi facility, bringing its assets to full capacity by late July. The company expects the full Mount Holly benefit in the third quarter, although temporary operational instability and raw-material issues at Jamalco remain headwinds. Positive outlook and strategic projects: Century forecast third-quarter adjusted EBITDA of $325 million to $345 million and ended June with $388 million in cash and $98 million of net debt. It continues to target a final investment decision on its Oklahoma smelter by the end of 2026, with potential tariff incentives helping fund the project. Forging Profits: The Executive Order Sparking Aluminum Century Aluminum (NASDAQ:CENX) reported higher second-quarter shipments, sales and adjusted EBITDA as it expanded output at its Mount Holly plant and advanced the restart of a potline at its Grundartangi facility in Iceland. The company said second-quarter shipments rose 6% from the prior quarter to approximately 131,000 tons. Net sales increased by $103 million sequentially to $752 million, driven by higher realized London Metal Exchange aluminum prices, stronger regional premiums and increased shipment volumes. → 3 Drone Stocks That Should Soar After the Summer Slump 2 Aluminum Stocks Poised for Big Tariff-Related Gains Century reported net income of $249 million, or $2.39 per share, for the quarter. Adjusted net income was $257 million, or $2.46 per share, excluding exceptional items including unrealized derivative gains, business-interruption losses in Iceland and Mount Holly restart expenses. Adjusted EBITDA increased $96 million from the prior quarter to $327 million. President and Chief Executive Officer Jesse Gary said Century had achieved its goal of having all company assets operating at full capacity by the end of July. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Smelting Hot: The Mideast Conflict Sparks an Aluminum Squeeze At Mount Holly, Century completed the restart of its final 90 pots in late June, returning the South Carolina plant to full capacity. The project was completed on time and on budget, according to Gary. He said the expansion increases total U.S. primary aluminum production by nearly 10% and added more than 150 full-time jobs at the facility. The company said the second quarter included only a partial contribution from Mount Holly’s higher run rate because the restart occurred incrementally. Century expects to see the full production benefit in the third quarter. Gary noted that Mount Holly has experienced some operational instability following the restart, which he characterized as not unusual after a project of that scale. The impact is included in the company’s third-quarter outlook, and Century does not expect effects beyond the third quarter. → Jersey Mike's Serves Fresh Gains After IPO Stumble At Grundartangi, Century completed the restart of Line 2 at the end of July, about six months sooner than the timeline management had first discussed in October. The plant is operating near full production, though Line 2 is being run at slightly reduced amperage until replacement transformers arrive and are installed in the fourth quarter. Management said it does not expect the installation work to interrupt production. Century also brought its new TG4 power-generation turbine online at Jamalco in early August. Gary said the turbine enables the Jamaican alumina refinery to operate using entirely self-generated electricity, reducing reliance on costly and sometimes unreliable purchases from the Jamaican grid. He said the financial benefit will phase in through the remainder of the year. During the question-and-answer session, Gary estimated the benefit at about $20 per ton, depending on Jamaican energy prices. Jamalco continues to encounter lower-quality bauxite from certain mining areas. The company has implemented a revised mining plan, but Gary said it could take another couple of quarters to fully execute, leaving a modest near-term headwind to costs and volumes. Chief Financial Officer Peter Trpkovski said second-quarter adjusted EBITDA benefited primarily from higher aluminum prices and premiums. Century’s realized LME price was $3,250 per ton, up $350 per ton from the prior quarter. Its realized U.S. Midwest Premium was $2,480 per ton, up $280, while the European premium increased $140 to $450 per ton. Combined pricing changes contributed an incremental $95 million to adjusted EBITDA compared with the first quarter, Trpkovski said. Higher volumes and sales mix added another $8 million, though shipment timing at quarter-end increased finished-goods inventory tied to the Mount Holly expansion. Century expects that inventory to ship during the third quarter. The company ended June with $388 million in cash after repaying $66 million of debt during the quarter. It had no outstanding borrowings under its revolving credit facilities and reduced net debt to $98 million. Century said that, by the end of July, cash on hand exceeded total debt after it received $94 million related to 45X tax credits for fiscal 2025 and another $19 million in insurance recoveries tied to the Grundartangi interruption. Quarterly capital expenditures totaled $59 million, including $37 million for the Mount Holly expansion and TG4 project. Management said growth capital expenditures associated with the Mount Holly and Grundartangi projects are now complete, leaving primarily sustaining capital expenditures during the second half of 2026. Century forecast third-quarter adjusted EBITDA of $325 million to $345 million. The outlook assumes a lagged LME price of $3,325 per ton, about $75 above the company’s second-quarter realized price, and a U.S. Midwest Premium of $1.09 per pound, down $0.03 from the second-quarter realized level. The company expects the European duty-paid premium to rise about $70 per ton to approximately $520 per ton. Pricing and delivery-premium changes are expected to add $5 million to $10 million to adjusted EBITDA sequentially. Higher summer energy costs are expected to create a $10 million to $15 million headwind. Higher raw-material costs are expected to reduce EBITDA by approximately $5 million. Higher Mount Holly production and shipments are expected to add $15 million to $25 million through volume and sales mix. Century also expects realized hedge settlements to reduce third-quarter adjusted net income by $20 million to $25 million, while tax expense is projected at $10 million to $15 million. Management said it continues to advance its proposed Oklahoma aluminum smelter with joint-venture partner Emirates Global Aluminium. Bechtel is conducting detailed engineering work, while Century is negotiating a final energy agreement and progressing financing discussions. The company continues to target a final investment decision and groundbreaking by the end of 2026, with first hot metal expected by the end of 2029. Gary also highlighted a July 20 executive order from President Trump that establishes a reduced-tariff import incentive for approved companies building or expanding U.S. primary aluminum production. Under the program described by Century, approved companies could import primary aluminum equal to the amount of new production being built at a 25% tariff rate rather than the otherwise applicable 50% rate. Century expects the Oklahoma project to qualify for imports of up to 750,000 metric tons annually beginning in 2027, with 60% allocated to EGA and 40% to Century. That would allow Century to import up to 300,000 metric tons per year at the reduced rate, subject to Commerce Department rules and project approval. Gary said the company intends to use the benefit to help fund its portion of the Oklahoma project. Century also retained a 6.8% non-dilutive interest in a Hawesville data-center project after selling the site in February for $200 million in cash. Gary said the company’s partner, TeraWulf, has signed Anthropic to a 20-year lease expected to generate approximately $19 billion in lease revenue over its initial term. Century has no obligation to fund the project’s development costs and may exercise a right to sell its stake back to TeraWulf one year after expected energization in the second half of 2027. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Century Aluminum Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Shipments: Approximately 131,000 tonnes in Q2, a 6% increase from the prior quarter. Net Sales: $752 million, up $103 million sequentially. Net Income: $249 million, or $2.39 per share. Adjusted Net Income: $257 million, or $2.46 per share, excluding exceptional items. Adjusted EBITDA: $327 million, up $96 million from the prior quarter. Realized LME: $3,250 per tonne, up $350 versus prior quarter. Realized US Midwest Premium: $2,480 per tonne, up $280. Realized European Premium: $450 per tonne, up $140. Cash Balance: $388 million at the end of June. Debt Repayments: $66 million in the quarter, with no outstanding borrowings on credit facilities. Net Debt: Reduced to $98 million. Capital Expenditures: $59 million in the quarter, including $37 million for Mt. Holly expansion and TG4 at Jamalco. Q3 Adjusted EBITDA Outlook: Expected in the range of $325 million to $345 million. Warning! GuruFocus has detected 5 Warning Signs with CENX. Is CENX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Century Aluminum Co (NASDAQ:CENX) successfully completed the Mt. Holly expansion and the restart of Grundartangi's Line 2, bringing all assets to full capacity for the first time in over a decade, ahead of schedule. The company reported strong Q2 2026 financial results with adjusted EBITDA of $327 million, a $96 million increase sequentially, driven by higher LME prices, regional premiums, and increased volumes. Century Aluminum Co (NASDAQ:CENX) strengthened its balance sheet, ending Q2 with $388 million in cash, no outstanding borrowings on credit facilities, and net debt reduced to $98 million; by end of July, cash exceeded total debt. The new executive order provides Century Aluminum Co (NASDAQ:CENX) with a significant tariff benefit, allowing imports of up to 300,000 metric tons per year at a reduced 25% rate starting in 2027, which will help fund the Oklahoma smelter project. The Jamalco refinery brought its new TG4 turbine online, enabling self-generated energy, which is expected to reduce costs by approximately $20 per ton and eliminate reliance on expensive grid purchases. Market conditions remain robust with a projected global aluminum deficit of around 1 million tonnes in 2026 and 2027, supporting strong pricing and demand for Century Aluminum Co (NASDAQ:CENX)'s output. Century Aluminum Co (NASDAQ:CENX) experienced some operational instability at Mt. Holly following the restart, which is expected to have a negative impact on Q3 2026 results, though it is anticipated to be resolved by Q4. The Grundartangi plant is running at slightly reduced amperage until new transformers are installed in Q4, limiting production volumes and potentially affecting output in the near term. Jamalco continues to face headwinds from lower quality bauxite in certain mining areas, which is expected to modestly impact costs and volumes for another couple of quarters. Q3 2026 outlook includes energy headwinds of $10 million to $15 million due to warmer summer weather, and moderate increases in raw material costs are expected to be a $5 million sequential headwind. The company faces a $20 million to $25 million headwind from realized hedge settlements and $10 million to $15 million in tax expenses in Q3, which will impact adjusted net income and EPS. The Oklahoma smelter project faces uncertainties, including ongoing negotiations for a final energy contract and community concerns in Oklahoma, which could delay the FID and groundbreaking timeline. Q: How will Century value the benefit from the new executive order that allows importing primary aluminum at a reduced tariff rate, and where will the metal be sourced from?A: Jesse Gary (CEO) explained that the executive order provides a significant opportunity for Century. The company will source metal from various places, including its own resources in Iceland and potentially other sources. While final rules from the Commerce Department are pending, Gary provided a rule of thumb: the benefit is calculated by taking the difference between the 25% and 50% tariff rates, applying it to the LME price (currently ~$3,250/tonne), and multiplying by Century's share of 300,000 metric tons. This would be quite material and would impact both EBITDA and cash flow equally. Q: With the balance sheet in a strong position and multiple sources of cash to finance the Oklahoma smelter, how is management thinking about shareholder returns?A: Jesse Gary (CEO) noted that the company's cash position now exceeds total debt, and liquidity of $785 million significantly exceeds its target. While the company previously committed to revisiting capital returns once targets were cleared, the immediate priority remains funding the Oklahoma smelter project. Gary asked for patience as the company finalizes engineering and CapEx numbers ahead of FID, but stated they fully anticipate having plenty of cash to finance the smelter's equity piece while also pursuing other priorities, including capital returns. Q: Will the installation of new transformers at Grundartangi in Q4 impact production volumes?A: Jesse Gary (CEO) confirmed the plant is back to near full production but is running at slightly reduced amperage to avoid stressing repaired transformers. Once new transformers are installed in Q4, amperage will increase, returning the plant to its full normalized run rate. Peter Trpkovski (CFO) added that due to redundancy from the repaired transformers, they do not expect any interruption to production during the installation. Q: Is the Mt. Holly expansion eligible for the new executive order's tariff benefits, and can you quantify the instability impact on Q3?A: Jesse Gary (CEO) clarified that Mt. Holly is not eligible because the expansion is complete and the program is designed to allow imports only while new production is coming online. Regarding instability, Gary noted it's a normal post-restart issue related to higher throughput in areas like the cast house and carbon operations. The impact is not material, is included in Q3 guidance, and is expected to be fully resolved by Q4, which should see slightly higher volumes than Q3. Q: Can you quantify the financial benefit of the new TG4 power turbine at Jamalco, and is it a sustainable long-term benefit?A: Jesse Gary (CEO) explained the benefit is twofold: Jamalco can now operate as an "island within the island" during grid disruptions, and it eliminates expensive grid power purchases. The cost savings are estimated at approximately $20 per ton, depending on market prices. Peter Trpkovski (CFO) confirmed this benefit is already reflected in the Q3 outlook. Q: What are the working capital unwind and cash flow considerations for the second half of the year?A: Peter Trpkovski (CFO) detailed that the Q2 working capital build was due to bringing Mt. Holly to 100% capacity and shipment cutoff timing. While the permanent working capital needed for full operations won't be recovered, a good portion of the finished goods inventory will convert to cash in Q3. Additionally, the company received $94 million in 45X tax credits and $19 million in insurance recoveries in July. With growth CapEx now complete, only sustaining CapEx remains, leading to stronger cash flow conversion going forward. Q: What is the status of the power contract negotiations for the Oklahoma smelter, and are there any gating items ahead of FID?A: Jesse Gary (CEO) stated that negotiations with the utility counterparty and partner EGA are progressing well, though these are complex contracts that take time to finalize. The contract will be completed before FID, but Gary declined to handicap a specific timeline, emphasizing that work is moving forward with good progress. Q: How is Century addressing local community concerns about the Oklahoma smelter project?A: Jesse Gary (CEO) acknowledged that communities naturally have questions when a major project is announced. Century is working closely with the community in Inola and across Oklahoma to understand concerns and provide facts about the technology and process. Gary expressed confidence that the smelter poses no harm and that the substantial investment and job creation benefits will ultimately reassure stakeholders. Q: What is the status of the DOE grant for the Oklahoma project, and what other financing sources are being pursued?A: Jesse Gary (CEO) confirmed the $500 million DOE grant remains secured, with funds released dollar-for-dollar as investments are made into the project. On broader financing, the company is in discussions with multiple parties, including potential government sources, and will provide details once secured. Q: How should we think about the Hawesville data center stake as a potential funding source for Oklahoma?A: Jesse Gary (CEO) highlighted that partner TeraWulf signed Anthropic as a tenant for a 20-year lease expected to generate approximately $19 billion in total revenue. The company's 6.8% nondilutive stake is expected to be worth well in excess of the initial $200 million cash proceeds. The monetization timeline aligns well with Oklahoma's construction schedule, making it a potential source of capital if needed, with no obligation for Century to fund development costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NN Inc. (NNBR) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +175.00%. A quarter ago, it was expected that this industrial parts maker would post a loss of $0.05 per share when it actually produced earnings of $0.02, delivering a surprise of +140%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. NN, which belongs to the Zacks Metal Products - Procurement and Fabrication industry, posted revenues of $128.74 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.98%. This compares to year-ago revenues of $107.92 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NN shares have added about 200.8% since the beginning of the year versus the S&P 500's gain of 13%. While NN has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for NN was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $116 million in revenues for the coming quarter and $0.16 on $465.95 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Metal Products - Procurement and Fabrication is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Century Aluminum (CENX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This aluminum producer is expected to post quarterly earnings of $2.40 per share in its upcoming report, which represents a year-over-year change of +4900%. The consensus EPS estimate for the quarter has been revised 10% lower over the last 30 days to the current level. Century Aluminum's revenues are expected to be $835.3 million, up 33% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NN, Inc. (NNBR) : Free Stock Analysis Report Century Aluminum Company (CENX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Century Aluminum (CENX) came out with quarterly earnings of $2.39 per share, missing the Zacks Consensus Estimate of $2.4 per share. This compares to a loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -0.42%. A quarter ago, it was expected that this aluminum producer would post earnings of $1.16 per share when it actually produced earnings of $1.06, delivering a surprise of -8.62%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Century, which belongs to the Zacks Metal Products - Procurement and Fabrication industry, posted revenues of $752.1 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 9.96%. This compares to year-ago revenues of $628.1 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Century shares have added about 19.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While Century has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Century was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.97 on $959 million in revenues for the coming quarter and $11.34 on $3.41 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Metal Products - Procurement and Fabrication is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Industrial Products sector, Resideo Technologies (REZI), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This residential comfort and security systems maker is expected to post quarterly earnings of $0.68 per share in its upcoming report, which represents a year-over-year change of +3%. The consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level. Resideo Technologies' revenues are expected to be $1.93 billion, down 0.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Century Aluminum Company (CENX) : Free Stock Analysis Report Resideo Technologies, Inc. (REZI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CHICAGO, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Century Aluminum Company (NASDAQ: CENX) today announced its second quarter 2026 results. Second Quarter 2026 Financial Results Business Highlights 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 Received 2025 45X refund totaling $94.3 million in July As of the end of July, Century cash exceeded total debt Net sales for the second quarter ended June 30, 2026 increased by $102.9 million 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. Century reported Net income attributable to Century of $249.3 million for the second quarter of 2026, a $88.2 million decrease sequentially. The decrease in net earnings during the second quarter of 2026 was primarily attributable to the one-time gain on sale of Hawesville of $287.9 million in the first quarter, offset by favorable realized LME and regional premium prices, and an increase in gain on insurance proceeds related to Iceland equipment failure of $7.1 million and favorable power price realization due to improved weather conditions in the United States, partially offset by unfavorable raw material price realization. Second quarter results were also impacted by $8.0 million of net exceptional items, in particular, $61.3 million related to equipment failures in Iceland, net of tax; $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. Therefore, Century reported an Adjusted net income attributable to Century of $257.3 million for the second quarter of 2026, a $86.6 million increase sequentially. Adjusted EBITDA attributable to Century for the second quarter of 2026 was $326.9 million. This was an increase of $95.5 million from the prior quarter, mainly from favorable realized metal prices, sales mix and operating expenses, favorable power price, partially offset by unfavorable raw material price realization. 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. Third Quarter 2026 Outlook The Company expects third quarter Adjusted EBITDA attributable to Century to range between $325 million to $345 million. About Century Aluminum Company With its corporate headquarters located in Chicago, IL, Century Aluminum owns and operates primary aluminum smelting facilities in the United States and Iceland and is the majority owner and managing partner of the Jamalco alumina refinery in Jamaica. Visit www.centuryaluminum.com for more information. Non-GAAP Financial Measures Adjusted net income (loss), adjusted earnings (loss) per share and adjusted EBITDA are non-GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Century’s ongoing operating performance and ability to generate cash. Management believes these non-GAAP financial measures enhance an overall understanding of Century’s performance and our investors’ ability to review Century’s business from the same perspective as management. The tables below, under the heading "Reconciliation of Non-GAAP Financial Measures," provide a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Century's reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, adjusted net income (loss), adjusted earnings (loss) per share and adjusted EBITDA included in this press release may not be comparable to similarly titled measures of other companies. Investors are encouraged to review the reconciliations in conjunction with the presentation of these non-GAAP financial measures. We do not provide a reconciliation of forward-looking Adjusted EBITDA because the corresponding forward-looking GAAP financial measures is not currently available and management cannot reliably predict all the necessary components of such forward-looking GAAP measures without unreasonable effort or expense due to the inherent difficulty of forecasting and quantifying certain amounts that are necessary for such a reconciliation, including adjustments that could be made for restructuring, the variability of our tax rate, the impact of foreign currency fluctuation, and other charges reflected in our historical results. The probable significance of each of these items is high and, based on historical experience, could be material. Cautionary Statement This press release and statements made by Century Aluminum Company management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to the "safe harbor" created by section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words "believe," "expect," "hope," "target," "anticipate," "intend," "plan," "seek," "estimate," "potential," "project," "scheduled," "forecast" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," "might," or "may." Forward-looking statements, for example, may include statements regarding: Our assessment of global and local financial and economic conditions; Our assessment of the aluminum market and aluminum prices (including premiums); Our assessment of prices of our key raw materials and supply and availability of those key raw materials, including alumina, coke, pitch and aluminum fluoride; Our assessment of power prices and availability, including any potential curtailments or other disruptions in the supply of power; The impact of the wars in Ukraine and in the Middle East, including any sanctions and export controls targeting Russia and businesses or individuals tied to Russia; The future financial and operating performance of the Company and its subsidiaries; Our ability to successfully manage market risk and to control or reduce costs; Our plans and expectations with respect to future operations of the Company and its subsidiaries, including any plans and expectations to curtail or restart production, including the expected impact of any such actions on our future financial and operating performance; Our plans and expectations with regards to the restart of curtailed production at Mt. Holly including the timing, costs and benefits associated with restarting curtailed production; Any future impact of the equipment failure at Grundartangi and related events on our financial and operating performance; The timing of our ability to return our operating facilities to full and normal operation following equipment failure or other extraordinary events including our expectations as to timing for bringing our Grundartangi facility back to 100% and returning Jamalco to full and normal operation following the restart after Hurricane Melissa; Our ability to recover losses from our insurance, including with respect to losses incurred in connection with the October 2025 equipment failure at Grundartangi; The timing and terms of the data center being constructed on our former Hawesville site to commence commercial operations and our ability to require Raylan Data Holdings LLC to repurchase our minority interest therein; The impact of Section 232 and 301 and other trade actions, including tariffs or other trade remedies, the extent to which any such remedies may be changed, including through exclusions or exemptions, and the duration of any trade remedy; The impact of any new or changed law or regulation, including, without limitation, sanctions or other similar remedies or restrictions or any changes in interpretation of existing laws or regulations; Our anticipated tax liabilities, benefits or refunds including the realization of U.S. and certain foreign deferred tax assets and liabilities; Our ability to qualify for and realize potential tax benefits under the Inflation Reduction Act of 2022 and the anticipated amounts of such benefits; Our expectations regarding the availability of the $500 million DOE funding to our new smelter project, including our ability to raise additional capital through additional grants, incentives, subsidized loans and other debt and equity funding to support construction of a new aluminum smelter and our ability to successfully complete our new smelter project; The likelihood of our formalizing a joint venture with Emirates Global Aluminium for the new smelter project, and if we do, our ability to secure necessary power arrangements for the project on commercially reasonable terms, to timely complete construction of the project on budget, and to commence profitable operations; Our ability to access existing or future financing arrangements and the terms of any such future financing arrangements; Our ability to repay or refinance debt in the future; Our assessment and estimates of our pension and other postretirement liabilities, legal and environmental liabilities and other contingent liabilities; Our assessment of any future tax audits and expected outcomes; Negotiations with current labor unions or future representation by a union of our employees; Our assessment of any information technology-related risks, including the risk from cyberattacks or other data security breaches; Our plans and expectations regarding potential M&A and joint venture activity including our ability to consummate such transactions and our assessments of certain risks associated with the same, including, for example, unforeseen costs and expenses associated with unidentified liabilities, and difficulties integrating an acquired asset into our existing operations; and Our future business objectives, plans, strategies and initiatives, including our competitive position and prospects. Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings made with the Securities and Exchange Commission. Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause actual results or events to differ from those anticipated, estimated or intended. Many of these factors are beyond our ability to control or predict. Given these uncertainties, the reader is cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. (1) Excludes scrap aluminum sales, purchased aluminum and alumina sales. (1) Represents impact of property damage and business interruption as a result of equipment failure at Grundartangi(2) Represents Century's 55% share of incremental and fixed costs incurred while alumina production at Jamalco was restarted after Hurricane Melissa(3) Represents incremental costs associated with the Mt. Holly expansion project (1) Represents impact of property damage and business interruption as a result of equipment failure at Grundartangi(2) Represents incremental and fixed costs incurred while alumina production at Jamalco was restarted after Hurricane Melissa(3) Represents incremental costs associated with the Mt. Holly expansion project