v3.26.1
Business, Product and Geographical Area Information
 3 Months Ended
Mar. 31, 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 (in millions of dollars):

 

 

 

Quarter Ended March 31,

 

 

 

2026

 

 

2025

 

Net sales

 

$

1,106.8

 

 

$

777.4

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

Cost of products sold, excluding depreciation and amortization

 

 

 

 

 

 

Hedged cost of alloyed metal1

 

 

702.4

 

 

 

414.2

 

Manufacturing costs2

 

 

162.2

 

 

 

181.9

 

Plant overhead3

 

 

47.3

 

 

 

46.1

 

Freight costs

 

 

22.3

 

 

 

20.7

 

Other cost of products sold4

 

 

9.0

 

 

 

10.5

 

Depreciation and amortization

 

 

30.4

 

 

 

30.0

 

Selling, general, administrative, research and development

 

 

 

 

 

 

Research and development costs

 

 

0.6

 

 

 

0.3

 

Employee costs5

 

 

26.7

 

 

 

22.5

 

Other selling, general and administrative costs6

 

 

8.1

 

 

 

8.0

 

Restructuring costs

 

 

—

 

 

 

1.8

 

Interest expense

 

 

14.4

 

 

 

11.2

 

Other expense, net – Note 8

 

 

1.0

 

 

 

1.4

 

Income tax provision

 

 

19.9

 

 

 

7.2

 

Net income

 

$

62.5

 

 

$

21.6

 

 

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 also includes metal price exposure on shipments that we hedged with realized gains upon settlement of $7.5 million and $4.6 million in the quarters ended March 31, 2026 and March 31, 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 (in millions of dollars):

 

 

 

Quarter Ended March 31,

 

 

 

 

2026

 

 

2025

 

 

Net sales:

 

 

 

 

 

 

 

Aero/HS Products

 

$

286.8

 

 

$

214.7

 

 

Packaging

 

 

498.4

 

 

 

314.2

 

 

GE Products

 

 

240.3

 

 

 

181.6

 

 

Automotive Extrusions

 

 

81.3

 

 

 

66.9

 

 

Total net sales

 

$

1,106.8

 

 

$

777.4

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

Products transferred at a point in time

 

$

853.2

 

 

$

590.8

 

 

Products transferred over time

 

 

253.6

 

 

 

186.6

 

 

Total net sales

 

$

1,106.8

 

 

$

777.4

 

 

The following table presents geographic information for income taxes paid (in millions of dollars):

 

 

 

Quarter Ended March 31,

 

 

 

 

2026

 

 

2025

 

 

Income taxes paid:

 

 

 

 

 

 

 

Domestic

 

$

0.3

 

 

$

—

 

 

Foreign

 

 

0.7

 

 

 

1.8

 

 

Total income taxes paid

 

$

1.0

 

 

$

1.8