Adjusted EBITDA was $68 million, down $6 million year-over-year, impacted by higher operating costs including start-up expenses and maintenance timing.
Aerospace and high-strength conversion revenue declined 5% due to a 4% shipment decrease amid commercial aircraft supply chain destocking.
Automotive conversion revenue declined 4% on a 15% shipment decrease due to tariff-related uncertainties, partially offset by better pricing and mix.
Cash flow from operations was $16 million with capital expenditures of $44 million; free cash flow guidance revised down to $50 million to $70 million due to working capital impacts from metal pricing and tariffs.
General engineering conversion revenue rose 3% with a 5% shipment increase driven by reshoring and strong pricing.
Kaiser Aluminum delivered second quarter results exceeding expectations, with conversion revenue of $374 million, up 1% year-over-year.
Liquidity remains strong with $13 million cash and $525 million borrowing availability; net debt leverage ratio increased to 4.2x from 3.9x.
Net income was $23 million or $1.41 per diluted share; adjusted net income was $20 million or $1.21 per diluted share, down from prior year adjusted net income of $27 million.
Packaging conversion revenue increased 9% year-over-year on improved product mix despite a 3% shipment decline due to ramp-up of new roll coat line.
Reported operating income was $38 million, up $2 million from prior year, but adjusted operating income was down $7 million after excluding prior year non-run rate charges.
Market Opening for Hawaii Commercial Real Estate Transactions
Management noted that the Hawaii transaction market is starting to open up, with increased opportunities across asset classes.
While specific deals are not detailed, management expressed optimism about placing additional capital before year-end, though they do not expect material earnings impact for 2025.
Operational Performance and Supply Chain Management
CF maintained a high utilization rate of 99% for ammonia production, with 5.2 million tons produced in H1 2025.
Operational safety was highlighted with only 3 recordable incidents and zero lost time days, demonstrating operational excellence at scale.
The company effectively managed logistics and inventory, delaying UAN fill programs to optimize supply and meet customer needs amid tight global inventories.
Dafinchi