Century Aluminum 2025 Q2 Earnings Wider Losses Despite Revenue Growth

Century Aluminum reported mixed results in Q2 2025, posting a revenue increase but a wider-than-expected loss. While the company beat revenue expectations, it did not adjust full-year guidance, and no EPS or net income targets were provided for the upcoming quarter. The reported loss per share widened, reflecting ongoing operational challenges.

Revenue
Century Aluminum’s total revenue rose 12.0% year-over-year to $628.10 million in Q2 2025, driven by increased sales to both related parties and other customers. Revenue from related parties totaled $367.60 million, while other customers contributed $260.50 million, collectively supporting the company’s net sales growth.

Earnings/Net Income
The company’s earnings performance weakened significantly, with losses expanding to $0.05 per share in Q2 2025 from $0.03 per share in the prior-year period, marking a 66.7% increase in the loss. Meanwhile, the net loss widened to $9.10 million, up 35.8% from $6.70 million a year ago, underscoring the financial pressures the company continues to face.

Price Action
The stock price of Century Aluminum posted a strong performance in the short term, gaining 4.33% on the latest trading day, 6.89% over the previous week, and surging 21.85% month-to-date.

Post-Earnings Price Action Review
A strategy of purchasing Century Aluminum shares following a quarterly revenue increase and holding for 30 days has historically delivered strong returns, yielding 115.63% over the past three years versus a 47.91% return for the benchmark. This 67.72% excess return highlights the potential for leveraging positive earnings momentum, while the strategy’s zero maximum drawdown and Sharpe ratio of 0.42 suggest effective risk management even in volatile markets.

CEO Commentary
CEO Jesse Gary emphasized strategic moves to restart 50,000 metric tons of capacity at the Mt. Holly smelter, a decision driven by U.S. Section 232 tariffs and national security policies. He noted that this expansion would increase domestic aluminum production by nearly 10%, reinforcing the company’s commitment to U.S. onshoring. Despite a net loss in Q2, he highlighted an adjusted EBITDA of $74.3 million and expressed optimism about the company’s operational and financial resilience in a challenging environment.

Guidance
The company anticipates third-quarter Adjusted EBITDA to range between $115 to $125 million, supported by higher Midwest regional premiums. However, no specific targets for revenue, EPS, or net income were provided.

Additional News
Recent global headlines include geopolitical tensions over the Gaza plan, with rifts emerging ahead of cabinet meetings and UN warnings against potential occupation. Tariff discussions continue to dominate, with India pushing back against increased levies and EU pharma companies bracing for U.S. tariff impacts. In the Americas, Trump’s policy moves include excluding illegal immigrants from the U.S. census and nominating an economic adviser to the Federal Reserve Board. In Asia-Pacific, Cambodia and Thailand signed a ceasefire agreement, and Myanmar’s acting president passed away. In Africa, central banks are turning to gold to stabilize economies, and tragic incidents include a helicopter crash in Ghana and multiple plane crashes.