v3.26.1
Business, Product and Geographical Area Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business, Product and Geographical Area Information

12. Business, Product, and Geographical Area Information

Our primary line of business is the production of semi-fabricated specialty aluminum mill products, such as plate and sheet, bare and coated coils, and extruded and drawn products, primarily used in our Aero/HS Products, Packaging, GE Products, and Automotive Extrusions end markets. We operate production facilities in the United States and Canada. We have one operating and reportable segment. Our determination that we operate as a single segment is consistent with the financial information regularly viewed by the chief operating decision maker (“CODM”) to evaluate performance and make decisions regarding resource allocation. The CODM uses Net income to measure segment profitability in deciding whether to reinvest profits into the segment or into other parts of the entity, such as for acquisitions or to pay dividends.

The following table presents the significant segment expenses that are provided to the CODM:

 

 

 

Quarter Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net sales

 

$

1,256.6

 

 

$

823.1

 

 

$

2,363.4

 

 

$

1,600.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold, excluding depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

Hedged cost of alloyed metal1

 

 

819.6

 

 

 

448.9

 

 

 

1,522.0

 

 

 

863.1

 

Manufacturing costs2

 

 

151.5

 

 

 

191.9

 

 

 

313.7

 

 

 

373.7

 

Plant overhead3

 

 

47.9

 

 

 

44.0

 

 

 

95.2

 

 

 

90.1

 

Freight costs

 

 

28.0

 

 

 

21.2

 

 

 

50.3

 

 

 

42.0

 

Other cost of products sold4

 

 

10.6

 

 

 

16.8

 

 

 

19.6

 

 

 

27.3

 

Depreciation and amortization

 

 

29.6

 

 

 

29.6

 

 

 

60.0

 

 

 

59.6

 

Selling, general, administrative, research and development

 

 

 

 

 

 

 

 

 

 

 

 

Research and development costs

 

 

0.7

 

 

 

0.3

 

 

 

1.3

 

 

 

0.6

 

Employee costs5

 

 

26.1

 

 

 

22.7

 

 

 

52.8

 

 

 

45.2

 

Other selling, general and administrative costs6

 

 

8.9

 

 

 

9.6

 

 

 

17.0

 

 

 

17.6

 

Restructuring costs

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

1.9

 

Interest expense

 

 

14.5

 

 

 

12.5

 

 

 

28.9

 

 

 

23.7

 

Other income, net – Note 8

 

 

(7.1

)

 

 

(4.4

)

 

 

(6.1

)

 

 

(3.0

)

Income tax provision

 

 

29.5

 

 

 

6.7

 

 

 

49.4

 

 

 

13.9

 

Net income

 

$

96.8

 

 

$

23.2

 

 

$

159.3

 

 

$

44.8

 

 

1.
Hedged cost of alloyed metal includes cost of aluminum at the MWTP and the cost of alloying elements used in the production process. This metric is net of metal price exposure on shipments that we hedged with realized gains upon settlement of $11.4 million and $0.6 million for the quarters ended June 30, 2026 and June 30, 2025, respectively, and $18.9 million and $5.2 million for the six months ended June 30, 2026 and June 30, 2025, respectively.
2.
Manufacturing costs primarily includes labor, utilities, supplies, metal valuation impacts, metal profits, and other materials, excluding alloys, incurred at our various production facilities.
3.
Plant overhead includes salaried employee costs, property taxes, and insurance associated with our various production facilities.
4.
Other cost of products sold primarily includes accretion expense related to conditional asset retirement obligations, gains and losses on operating asset disposals, and major maintenance costs.
5.
Employee costs include indirect labor salaries, benefits, and incentive compensation.
6.
Other selling, general and administrative costs primarily includes professional services, computer hardware and software costs, office rent, and utilities.

The CODM does not review asset and capital expenditure information by reportable operating segment as such information is presented to the CODM on a consolidated basis.

The following table presents Net sales by end market applications and by timing of control transfer:

 

 

 

Quarter Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

Aero/HS Products

 

$

305.3

 

 

$

227.9

 

 

$

592.1

 

 

$

442.6

 

Packaging

 

 

580.4

 

 

 

340.9

 

 

 

1,078.8

 

 

 

655.1

 

GE Products

 

 

280.7

 

 

 

185.4

 

 

 

521.0

 

 

 

367.0

 

Automotive Extrusions

 

 

90.2

 

 

 

68.9

 

 

 

171.5

 

 

 

135.8

 

Total net sales

 

$

1,256.6

 

 

$

823.1

 

 

$

2,363.4

 

 

$

1,600.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

Products transferred at a point in time

 

$

992.0

 

 

$

626.6

 

 

$

1,845.2

 

 

$

1,217.4

 

Products transferred over time

 

 

264.6

 

 

 

196.5

 

 

 

518.2

 

 

 

383.1

 

Total net sales

 

$

1,256.6

 

 

$

823.1

 

 

$

2,363.4

 

 

$

1,600.5

 

The following table presents geographic information for income taxes paid:

 

 

 

Quarter Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Income taxes paid:

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

7.6

 

 

$

2.6

 

 

$

7.9

 

 

$

2.6

 

Foreign

 

 

0.6

 

 

 

0.9

 

 

 

1.3

 

 

 

2.7

 

Total income taxes paid

 

$

8.2

 

 

$

3.5

 

 

$

9.2

 

 

$

5.3