KAISER ALUMINUM CORP Q3 FY2024 earnings call

• Third quarter EBITDA was approximately $50 million, including a ~$4 million GAAP LIFO expense. • On track to meet 2024 conversion revenue outlook and year-over-year margin expansion. • Aerospace market drivers healthy with OEMs having strong aircraft backlogs. • Packaging shipment levels rose for the fourth consecutive quarter, with new coating line at Warrick nearing completion to boost margin. • General engineering: destocking run its course, service center inventory for long products at 2013 levels. • Automotive: shipment levels up modestly, on track for conversion revenue target with higher value-added products.

Conversion revenue for the third quarter was $362 million, an increase of $5 million or 1% compared to the prior year period. Aero and high-strength conversion revenue totaled $128 million in Q3 2024, a 5% decline on a 7% decrease in shipments. Packaging conversion revenue was $128 million, up 9% y/y with shipments down 2% but underlying demand strong. General engineering products conversion revenue was $76 million, up 1% y/y with a 5% increase in shipments. Automotive conversion revenue was $29 million, up 3% y/y with shipments down 2% due to higher pricing and improved product mix.

• Overall conversion revenue expected to remain stable with 0% to 1% growth y/y in 2024. • EBITDA margin estimated up 50 to 100 basis points y/y, excluding GAAP LIFO impact. • Aerospace: on track with healthy market drivers, monitoring Boeing-Machinist Union negotiation. • Packaging: shipment momentum continuing, new coating line to contribute 300-400 basis points of margin expansion. • General engineering: low service center inventory for long products, signs of order recovery for semiconductor plate. • Automotive: shipment levels up, on track for conversion revenue target.

• Supply chain challenges in aerospace impacting shipments. • Potential short-term impact of prolonged Boeing strike on demand and shipments. • Tight scrap spreads compressing margin benefit. • Adverse impact of extended destocking and contracting manufacturing PMI on pricing.

Q: Probe on aerospace destocking and Boeing strike impact A: Yes, inventory in aerospace supply line, but Kaiser's exposure to prolonged outage minimal as bulk of large OEM declarations shipped. Monitoring Boeing-Machinist Union negotiation.

Q: Potential impact of further tariffs A: Additional tariffs helpful for North American manufacturing, momentum building with Canada and Mexico imposing higher tariff levels Q: Packaging shipments and 4Q outlook A: Q3 had catch-up mode due to prior backlog, 4Q outlook strong, new coating line expected to boost output Q: Metal sourcing strategy and scrap spreads A: Scrap spreads compressed, preparing to utilize more scrap, no prediction on when spreads revert Q: Automotive impact and leverage A: Automotive shipment levels up, levered to light, heavy truck and SUV platforms which outperform broader market