Nasdaq:CENX
CENTURY ALUMINUM CO
A leading US-based primary aluminum producer utilizing low-cost power and strategic global assets to supply refined metal and alumina.
Key Metrics
Investment Thesis
Bull Case
Century Aluminum offers compelling value due to its low-cost production structure derived from abundant domestic bauxite reserves and cheap energy, providing a defensive margin floor even during aluminum price downturns. The company's strong free cash flow generation supports shareholder returns and allows for strategic acquisitions or debt reduction, enhancing financial stability in the cyclical metals sector.
Bear Case
Investors should be cautious of the recent decline in net income from $320.7M to $15.8M, which may signal margin pressure from high energy costs or lower metal prices despite high revenue. The significant retained earnings deficit of $-1.63B suggests ongoing historical losses or large equity adjustments that could limit future growth flexibility and increase vulnerability to economic slowdowns.
About CENTURY ALUMINUM CO
Century Aluminum Co. is a premier global producer of primary aluminum oxide (alumina) and refined aluminum metal, serving markets in the United States, Europe, Asia, and South America through its extensive network of mining and processing facilities. The company leverages low-cost energy sources to manufacture high-purity aluminum products for automotive, aerospace, construction, and packaging industries.
Analysis
Management Discussion
Century Aluminum reported revenue of $2.53B in the latest period, reflecting a recovery from previous years' volatility despite a net profit margin compression evident in the 2025 figures compared to the exceptional $320.7M gain in 2024. The company generated robust operating cash flow of $185.0M and maintained a healthy liquidity position with $134.2M in cash and equivalents, while capital expenditures of $100.2M indicate continued investment in maintaining production capacity.
Industry Overview
The global aluminum industry is characterized by a highly competitive landscape dominated by major producers in China, Canada, and Russia, with margins heavily influenced by energy costs and supply chain logistics. Century Aluminum competes globally but maintains a strategic advantage through its US-based assets which avoid carbon tariffs and benefit from stable domestic regulatory environments.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.78B | $2.19B | $2.22B | $2.53B |
| Cost of Revenue | $2.73B | $2.09B | $2.04B | $2.27B |
| Gross Profit | $46.7M | $91.9M | $185.0M | $256.4M |
| Operating Expenses | $196.9M | $60.1M | $63.6M | $98.3M |
| Operating Income | $-150.2M | $31.8M | $121.4M | $158.1M |
| G&A | $37.5M | $44.3M | $56.8M | $79.9M |
| Stock-Based Comp | $-600.0K | $6.6M | $15.4M | $47.0M |
| D&A | $73.4M | $74.7M | $81.8M | $91.8M |
| Depreciation | $73.4M | — | — | — |
| Other OpEx | $159.4M | $15.8M | $6.8M | $18.4M |
| Non-Operating Income | $183.6M | $-98.6M | $202.4M | $-155.4M |
| Interest Income | $500.0K | $2.0M | $2.1M | $9.2M |
| Pre-Tax Income | $33.4M | $-66.8M | $323.8M | $2.7M |
| Income Tax | $47.4M | $-14.6M | $3.2M | $-13.1M |
| Continuing Ops | $-14.0M | $-52.2M | $320.6M | $15.8M |
| Discontinued Ops | $-100.0K | $-100.0K | $100.0K | $0 |
| Net Income | $-14.1M | $-52.3M | $320.7M | $15.8M |
| Minority Interest | $0 | $-9.2M | $-16.1M | $-26.0M |
| Net to Common | $-14.1M | $-43.1M | $336.8M | $41.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $677.8M | $767.1M | $802.8M | $1.03B |
| Cash & Equivalents | $54.3M | $88.8M | $32.9M | $134.2M |
| Accounts Receivable | $66.9M | $53.7M | $75.8M | $109.9M |
| Inventory | $398.8M | $477.0M | $539.0M | $519.6M |
| Prepaid Expenses | $24.5M | $27.5M | $28.3M | $24.4M |
| Other Current Assets | $133.3M | $120.1M | $126.8M | $243.2M |
| Long-Term Assets | $794.2M | $1.08B | $1.14B | $1.24B |
| PP&E (Net) | $744.4M | $1.00B | $978.3M | $1.17B |
| Operating Leases | $20.9M | $24.7M | $21.0M | $24.4M |
| Other LT Assets | $28.9M | $50.5M | $137.3M | $46.0M |
| Total Assets | $1.47B | $1.85B | $1.94B | $2.27B |
| Current Liabilities | $410.7M | $763.0M | $463.7M | $523.6M |
| Current Leases | $1.8M | $2.3M | $3.0M | $2.6M |
| Other Current Liab | $348.2M | $709.8M | $418.7M | $485.4M |
| Long-Term Liabilities | $662.0M | $739.4M | $813.0M | $815.8M |
| Long-Term Debt | — | $430.9M | — | — |
| LT Operating Leases | $20.9M | $21.9M | $18.7M | $22.0M |
| Other LT Liab | $641.1M | $286.6M | $794.3M | $793.8M |
| Total Liabilities | $1.07B | $1.50B | $1.28B | $1.34B |
| Shareholders' Equity | $399.3M | $344.1M | $662.7M | $929.9M |
| Paid-In Capital | $2.54B | $2.54B | $2.55B | $2.57B |
| Retained Earnings | $-1.96B | $-2.00B | $-1.67B | $-1.63B |
| AOCI | $-94.0M | $-97.9M | $-103.3M | $-55.2M |
| Treasury Stock | $86.3M | $86.3M | $86.3M | $86.3M |
| Total L&E | $1.47B | $1.85B | $1.94B | $2.27B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-14.1M | $-52.3M | $320.7M | $15.8M |
| Non-Cash Adjustments | $102.0M | $178.5M | $-402.2M | $142.3M |
| Working Capital Changes | $-62.0M | $-20.6M | $56.9M | $26.9M |
| Cash from Operations | $25.9M | $105.6M | $-24.6M | $185.0M |
| Capital Expenditures | $86.3M | $95.0M | $82.3M | $100.2M |
| Cash from Investing | $-85.5M | $-57.8M | $-67.3M | $-100.2M |
| Cash from Financing | $74.4M | $-13.0M | $37.3M | $15.1M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $14.8M | $34.8M | $-54.6M | $99.9M |
| Beginning Cash | $40.7M | $55.5M | $90.3M | $35.7M |
| Ending Cash | $55.5M | $90.3M | $35.7M | $135.6M |
Frequently Asked Questions
How does CENTURY ALUMINUM CO make money?
Production of primary aluminum oxide (alumina) from bauxite ore; Refining of alumina into primary aluminum metal; Global sales and distribution networks serving automotive, construction, and industrial sectors.
What are the main risks for CENX?
High sensitivity to volatile global aluminum prices which directly impact operating margins; Regulatory and geopolitical risks associated with international mining operations and cross-border trade policies; Exposure to climate-related physical risks affecting hydroelectric power generation capacity and supply chain disruptions.
What is CENX's competitive advantage?
Access to extremely low-cost hydroelectric power generation reducing per-ton production costs significantly below industry averages; Strategic ownership of high-grade bauxite reserves ensuring long-term supply security; Established global logistics network optimizing delivery to major manufacturing hubs in North America and Europe.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.