Century Aluminum (NASDAQ:CENX) executives used the company’s fourth-quarter 2025 earnings call to highlight progress on major growth and redevelopment initiatives, provide updates on operational disruptions and recovery timelines, and outline expectations for first-quarter performance and fiscal 2026 shipments and capital spending.
Oklahoma smelter partnership with EGA moves into next engineering phase
President and CEO Jesse Gary said Century made “substantial progress” in 2025 on its proposed Oklahoma smelter, culminating in a newly announced partnership with Emirates Global Aluminium (EGA) that would create the first new U.S. smelter in nearly 50 years. Under the joint venture, EGA will own 60% and Century will own 40% of the project, which is expected to benefit from a previously announced $500 million grant from the U.S. Department of Energy.
Management said the expected size of the Oklahoma smelter has increased to 750,000 metric tons, which Gary said would more than double total U.S. aluminum production. On the call, he emphasized the importance of finalizing a power contract with EGA and PSO, the regional utility. In response to analyst questions, Gary said Century is making “good progress” on the power contract but did not provide pricing guidance, adding that the agreement must be “enabling and attractive” for the investment to meet return requirements. He also said the company is pursuing multiple financing options, including potential government-related alternatives beyond the DOE grant.
Hawesville redevelopment: $200 million cash proceeds and retained equity interest
Century also discussed the sale and redevelopment of its Hawesville site into a digital infrastructure campus for high-performance computing and AI workloads by TeraWulf. Gary described the transaction as a positive outcome for the site and local community, citing expected job creation tied to data center development.
Under the terms described on the call, Century will receive $200 million in cash and retain a 6.8% interest in the completed data center. Gary said the site has 482 megawatts of “immediately available power,” and that “speed-to-power” has driven demand from hyperscalers and could support attractive lease rates. He added that TeraWulf indicated a data center could be online in the second half of 2027.
Both Gary and CFO Peter Trpkovski stressed that Century’s 6.8% interest is non-dilutive and does not require additional funding for the multi-billion-dollar build-out. Century also has the right to put its interest to TeraWulf on the first anniversary of data center operations commencing, which management described as providing an option for a certain exit if desired.
Trpkovski noted the Hawesville deal closed in February and that the company’s year-end cash balance did not include those proceeds.
Operational updates: Jamalco recovery and faster restart plan at Grundartangi
Gary said Century saw “excellent performance” across its smelter assets in the fourth quarter, with stability restored at Grundartangi and improved results at Mt. Holly. He also commended the Sebree team for what he called a record year across key performance and profitability metrics, despite difficult weather during the quarter.
At Jamalco in Jamaica, management reviewed the impact of Hurricane Melissa, which made landfall in late October as a Category 5 storm. Gary said the team’s precautionary shutdown procedures helped the refinery avoid significant damage and prevented injuries. However, he said damage to Jamaica’s broader electrical grid caused power instability, contributing to higher costs in November and December and reducing production volumes. He added that the refinery is now “well on its way” to full and stable production.
Century also expects to complete installation of a new on-site power generation turbine at Jamalco—TG4—in April. Gary said the turbine will allow the refinery to run on self-generated energy, eliminating expensive purchases from the Jamaican grid and improving the cost structure as the system ramps up through the second quarter.
In Iceland, Century updated the timeline for restarting Potline 2 at Grundartangi after an October failure of three electrical transformers. Gary said global transformer supply chains have been stressed by data center-driven demand, and the company continues to expect new replacement transformers will be installed in the fourth quarter of the year. However, he said Century now expects it will be able to repair some damaged transformers and begin restarting Line 2 at the end of April—about six months earlier than previously anticipated—with a goal of returning the line and the site to near-full production by the end of July.
Management also said insurers have confirmed coverage for the event and related business interruption, and that Century has already received its first payment and expects additional payments to be processed on a month-by-month basis.
Financial results: higher pricing offsets lower shipments
Trpkovski reported consolidated fourth-quarter shipments of about 140,000 tons, down sequentially due to the Iceland line loss. Net sales were $634 million, up $2 million from the prior quarter, driven by higher realized LME and Midwest premium pricing, partially offset by lower shipments.
Century posted net income of $1.8 million, or $0.02 per share. Adjusted net income was $128 million, or $1.25 per share, excluding exceptional items. Trpkovski said exceptional items primarily included share-based compensation adjustments, unrealized derivative losses, business interruption losses in Iceland, and the impact of Hurricane Melissa in Jamaica. Adjusted EBITDA was $171 million, attributed to higher LME and regional premiums, improved operating expenses, and higher Mt. Holly volumes versus the third quarter.
Century ended the quarter with $134 million in cash. The company used proceeds from a senior notes refinancing to fully repay remaining Iceland Cast House facility debt in the fourth quarter, reducing net debt to $421 million, according to Trpkovski.
On cash flow, Century generated $170 million of operating cash flow in the quarter and received a “45X check” for fiscal year 2024 totaling $75 million. Trpkovski said the company continues to accrue 45X tax credits and had a $173 million receivable as of December 31 tied to full-year 2023 and 2025 U.S. production, with the majority expected to be received in cash after tax filing in the second quarter.
Q1 outlook and fiscal 2026 expectations: higher pricing, weather headwind
For the first quarter, Century guided to adjusted EBITDA of $215 million to $235 million. Trpkovski said higher lagged LME and delivery premiums are expected to add $70 million to $80 million of adjusted EBITDA versus the fourth quarter, partially offset by a two-week U.S. energy price spike from Winter Storm Fern that created a $20 million headwind at Sebree. He added that Century had hedged roughly 25% of its Indiana hub exposure, resulting in an estimated net cash impact of about $15 million after approximately $5 million of positive hedge settlements. He said temperatures have improved and energy prices have returned to historical levels.
In response to a question, Trpkovski confirmed that Q1 guidance includes an add-back for lost margin at Grundartangi, consistent with the company’s prior practice, and said no additional adjustments are required.
For fiscal 2026, Trpkovski said Century expects to ship approximately 630,000 tons of primary aluminum, reflecting the partial impact of restarting the remaining 90 pots at Mt. Holly and the earlier-than-expected restart of Line 2 at Grundartangi. He added that once the initiatives are completed, total annualized production would be closer to 750,000 tons per year.
Century’s fiscal 2026 capital spending is expected to be $115 million to $125 million, including $45 million to bring back the final 90 pots at Mt. Holly. Trpkovski said this guidance excludes investment in transformer replacements in Iceland because those costs are expected to be largely offset by insurance proceeds, net of applicable deductibles.
About Century Aluminum (NASDAQ:CENX)
Century Aluminum Company is a primary aluminum producer that develops and operates smelters designed to supply low-carbon, high-purity aluminum products to a range of industrial and commercial markets. Established in 1995, the company has grown to become a significant North American aluminum producer with an expanding international footprint. Century Aluminum is headquartered in the United States and is focused on energy-efficient operations and cost management.
The company’s core operations include three primary aluminum smelting facilities located in Hawesville, Kentucky; Mount Holly, South Carolina; and Grundartangi, Iceland.
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