Century Aluminum (NASDAQ:CENX) reported a robust second quarter, marked by increased shipments, higher sales, and a significant boost in adjusted EBITDA, fueled by expanded output at its Mount Holly plant and the successful restart of operations in Iceland.
Operational Milestones and Growth
Shipments for the second quarter climbed 6% sequentially to approximately 131,000 tons. Net sales followed suit, rising $103 million to reach $752 million. This growth was primarily driven by favorable London Metal Exchange (LME) aluminum prices, stronger regional premiums, and higher volume outputs.
The company posted a net income of $249 million, or $2.39 per share. Excluding non-recurring items—such as derivative gains, business-interruption losses, and restart expenses—adjusted net income stood at $257 million, or $2.46 per share. Adjusted EBITDA saw a substantial jump of $96 million from the previous quarter, totaling $327 million.
Mount Holly and Grundartangi Plant Updates
CEO Jesse Gary confirmed that Century reached its objective of operating all company assets at full capacity by the end of July. At the Mount Holly facility in South Carolina, the restart of the final 90 pots was completed on time and within budget. This expansion increases U.S. primary aluminum production by nearly 10% and has created over 150 full-time jobs.
While the second quarter only captured a partial benefit from the Mount Holly restart, the company anticipates full production gains in the third quarter. In Iceland, the Grundartangi facility achieved a major win by restarting Line 2 at the end of July, roughly six months ahead of the original October schedule.
Energy Efficiency and Strategic Developments
Century also successfully brought its new TG4 power-generation turbine online at the Jamalco refinery in Jamaica. This move allows the site to operate on self-generated electricity, insulating the refinery from volatile grid pricing. CEO Jesse Gary estimates this will provide a financial benefit of approximately $20 per ton. However, the company is still navigating challenges related to lower-quality bauxite, with a revised mining plan expected to take another two quarters to normalize costs and volumes.
Financial Position and Future Outlook
Chief Financial Officer Peter Trpkovski noted that the company ended June with $388 million in cash, having successfully reduced net debt to $98 million. The company’s growth-related capital expenditures for the Mount Holly and Grundartangi projects are now largely complete.
Looking ahead to the third quarter, Century forecasts adjusted EBITDA between $325 million and $345 million. The outlook incorporates expectations of higher LME prices and increased European duty-paid premiums.
Expanding the Future: Oklahoma and Policy Incentives
Century continues to advance its proposed Oklahoma smelter project in partnership with Emirates Global Aluminium. Engineering work is underway, with a final investment decision and groundbreaking targeted for late 2026. The project could receive a significant boost from a recent executive order, which offers reduced-tariff import incentives for companies expanding U.S. primary aluminum production. Century estimates it could import up to 300,000 metric tons per year at a 25% tariff rate, aiding the funding of the Oklahoma venture.
Data Center Stake
Beyond aluminum, Century retains a 6.8% non-dilutive interest in a data-center project at the former Hawesville site. Partner TeraWulf has secured a 20-year lease with Anthropic, potentially generating $19 billion in revenue. Century holds no funding obligations for this development and maintains the right to sell its stake back to TeraWulf one year after the project’s energization, expected in late 2027.
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