| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 81 | 11.7x | 17.8x | Top tier | |
Growth | 89 | 32.8% | 7.1% | Top tier | |
Quality | 53 | 13.8% | 4.5% | Around median | |
Safety | 60 | 2.0x | 2.6x | Around median | |
Capital Return | 52 | 1.96% | 2.12% | Around median | |
Momentum | 80 | 144.4% | 2.9% | Top tier | |
Sentiment | 70 | 3 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Kaiser Aluminum Corporation produces high-value semi-fabricated aluminum products for the aerospace and high-strength applications, packaging, general engineering, and automotive markets. Its operating revenue model is clearly reflected in “conversion revenue,” which reached $437 million in Q2 FY2026, as the company benefits from shipment volumes, pricing, and the mix of value-added products, alongside metal-related factors such as scrap spreads and the impact of aluminum price timing lags. Conversion revenue was distributed approximately among packaging at $174 million, aerospace and high-strength applications at $136 million, general engineering at $96 million, and automotive at $32 million.
In Q2 FY2026, the company recorded revenue of $1.3 billion, gross profit of $199.0 million, net income of $96.8 million, and earnings per share of $5.72. This equates to a gross margin of approximately 15.3% and a net income margin of approximately 7.4%, compared with net income of $23 million and earnings per share of $1.41 in the comparable period, according to the earnings call. Reported operating income also reached $134 million, while adjusted EBITDA reached $166 million, an increase of $99 million year over year.
Packaging was the largest contributor to conversion revenue in Q2 FY2026, accounting for approximately 40%, after its revenue increased 34% year over year and shipments rose 10% due to the shift toward higher-value coated products. Aerospace and high-strength applications conversion revenue increased 7% to $136 million, general engineering increased 12% to $96 million, while automotive remained stable at $32 million despite an 11% decline in shipments. On a latest-twelve-month basis in FY2026, the latest EDGAR data showed revenue of $4.1 billion, gross profit of $600.7 million, net income of $227.0 million, and earnings per share of approximately $13.42.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on KALU is “Neutral,” with an average price target of $168 and targets ranging from $137 to $184, a difference of $47 between the two ends. The average target is approximately 16% below the 52-week range high of $199.89, while the annual range extends from $73.08 to $199.89, a breadth consistent with the reassessment of the company’s strong earnings against the possibility of fading metal gains and higher expenses in the second half of FY2026. No valid price-to-earnings ratio was provided in the data, so the valuation here is based on the target range, Neutral consensus, and 52-week range rather than an unavailable earnings multiple.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Kaiser Aluminum’s net income reached approximately $96.8 million and earnings per share reached $5.72 in Q2 FY2026, compared with $23 million and earnings per share of $1.41 in the comparable period. Adjusted EBITDA increased to $166 million, a year-over-year increase of $99 million. Pricing, shipments, and mix contributed $41 million of the improvement, while a net $58 million was related to exceptionally favorable metal factors.
Roll Coat 4 is central to the shift toward higher-value coated packaging products at the Warwick facility. The line was operating at approximately 80% of its targeted capacity in Q2 FY2026, yet the facility recorded the highest conversion revenue in its history, and packaging conversion revenue reached $174 million. The business’s revenue increased 34% and shipments rose 10% year over year, but the company is still working to address equipment and design issues and complete the qualification of additional coatings and business.
In Q2 FY2026, packaging conversion revenue reached $174 million, aerospace and high-strength applications reached $136 million, general engineering reached $96 million, and automotive reached $32 million. Aerospace benefited from higher production rates among original equipment manufacturers and demand in defense, space, and business jets, while Semi-K plate and inventory restocking supported general engineering. Packaging benefited from higher-value coated products, while automotive remained stable in terms of conversion revenue despite an 11% decline in shipments.
The company expects conversion revenue growth to approach the upper end of the 10%–15% range in FY2026 and adjusted EBITDA to increase 45%–55%. It also expects free cash flow of between $150 and $175 million and capital expenditures of between $120 and $130 million. Conversely, its outlook includes a more normalized metal contribution, fewer shipping days, maintenance and shutdowns, and higher spending in the second half of FY2026.
Cash totaled approximately $59 million on June 30, 2026, and available capacity under the revolving credit facility totaled approximately $570 million, bringing total liquidity to $628 million. The net debt-to-adjusted EBITDA ratio improved to 2.1 times, within the targeted range of 2.0–2.5 times, and there are no debt maturities before 2030. On July 13, 2026, the board of directors declared a quarterly dividend of $0.77 per common share.
The most significant financial risk is that the metal factors that contributed a net $58 million to the year-over-year improvement in adjusted EBITDA in Q2 FY2026 will not recur. Operationally, Roll Coat 4 remains at approximately 80% of targeted capacity, with qualification work and equipment and design issues remaining, while delivery performance is targeting 90% after exceeding only 70% in some weeks. The company also faces fewer shipping days and higher maintenance in the second half, continued destocking in some aerospace plate products, and an 11% year-over-year decline in automotive shipments.
