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KALU · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Kaiser Aluminum Corporation (KALU) stock moving?
Kaiser's Q3 2026 report (Oct 21) showed solid underlying performance: net sales of $1.2B, adjusted EPS of $1.89, a 19.1% adjusted EBITDA margin, and a maintained full-year outlook. Year-to-date operating cash flow was $248M and free cash flow $176M. Net debt leverage fell to 2.0x from 3.4x at year-end 2025, and Moody's upgraded the company to Ba3. Management said reported EBITDA rose only modestly year over year because the prior-year quarter had a larger metal price lag benefit. The stock opened at $134 on Oct 22 and then fell sharply on heavy volume (1.09M shares), closing at $114.22. It dropped further to $105.47 by Oct 26, rebounded to $121.72 on Oct 28, and then slid again. The Nov 4-5 decline (from $118.10 to $103.54, about -12%) came on 370k-425k shares with no company-specific news in the provided data. The stock has since stabilized near $110, with volume falling to about 231k shares, well below the late-October levels. Across the 30-day window, the Oct 26 and Nov 5 lows (about $102-104) mark the lower boundary, and the Oct 28-29 highs (about $121-122) mark the upper boundary. The Venezuela aluminum trade talks are a possible but unconfirmed indirect factor. The $0.77 dividend's record date (Oct 23) has already passed, so it does not explain recent price action.
News behind the analysis
- US, Venezuela in Talks on Fresh Aluminum Cargo in Trade Revival - Bloomberg ExclusiveBloomberg reports that the US and Venezuela are negotiating new aluminum cargo shipments as trade ties revive. The report does not link the talks to Kaiser Aluminum directly.
- Kaiser Aluminum Corporation Reports Third Quarter 2026 Financial ResultsQ3 net sales were $1.2B and conversion revenue $439M. Net income was $31M ($1.84 per diluted share), adjusted EBITDA $84M (19.1% margin), and the full-year 2026 outlook was maintained. Net debt leverage fell to 2.0x from 3.4x at year-end 2025, and Moody's upgraded the rating to Ba3 with a stable outlook.
- Kaiser Aluminum Corporation Announces Quarterly Dividend PaymentThe Board declared a quarterly cash dividend of $0.77 per share, with a record date of Oct 23, 2026 and payment on Nov 13, 2026.
- Form 10-Q Quarterly ReportThe quarterly report was filed on Oct 22, 2026. The provided filing text contains no further details.
About Kaiser Aluminum Corporation
Kaiser Aluminum is a Franklin, Tennessee-based company that makes semi-fabricated specialty aluminum products such as plate, sheet, coil, extrusions, rod, bar and wire. It doesn't smelt aluminum from ore. Instead it rolls and shapes purchased metal into highly engineered products for aerospace, beverage and food packaging, general engineering and automotive customers, and over the 12 months to September 2026 its revenue was roughly $4.5 billion.
How it makes money
Kaiser sells fabricated aluminum products under contracts that mostly pass the cost of the metal through to customers. Its profit therefore depends mainly on 'conversion revenue', meaning the value it adds by processing the metal, which was about $440 million in Q3 2026. Net sales were about $1.2 billion that quarter. Most sales come from aerospace and high-strength plate and sheet and from beverage and food packaging coil, with smaller shares from general engineering products and automotive extrusions. The company pays a quarterly dividend of about $0.77 per share.
What usually moves KALU
- Commercial aerospace build rates and aircraft-maker inventory levels
- Beverage can packaging demand and conversion pricing
- Aluminum prices and Midwest premium swings (metal pass-through and timing effects)
- Plant operating efficiency and expansion investments
- Debt leverage and industrial/auto demand