Century Aluminum Swings to $243.8M Q2 Profit on Higher Aluminum Prices; Material Weakness Persists
CENX has more than doubled off its 52-week low of $20.91 on elevated volume (1.9× avg).
Summary
Century Aluminum swung to a $243.8M Q2 profit from a year-ago loss, driven by higher aluminum prices and insurance gains, but disclosed that a material weakness in internal controls remains unremediated.
Key Events · Earnings and Guidance · CENX
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Q2 Profit Surge
Net income of $243.8M vs. a loss of $11.7M in Q2 2025, driven by higher aluminum prices (LME +41%, MWP +194%) and $40.1M in insurance gains.
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Revenue Growth
Total net sales rose 20% to $752.1M, with aluminum sales up 23% to $701.9M, reflecting strong pricing and higher volumes from Mt. Holly and Grundartangi restarts.
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Material Weakness Unremediated
Disclosure controls remain ineffective due to a material weakness at the Jamalco joint venture; remediation efforts are ongoing but not yet complete.
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Strong Liquidity
Liquidity position of $784.9M includes $343.4M cash and $396.7M undrawn credit facilities; Iceland facility maturity extended to December 2028.
Analysis · CENX · Manufacturing
A dramatic turnaround in Q2 2026 saw Century Aluminum post net income of $243.8 million, reversing a loss of $11.7 million a year ago. The surge was fueled by sharply higher aluminum prices—the average LME price rose to $3,576/tonne and the Midwest premium averaged $2,518/tonne, both up significantly year-over-year—and $40.1 million in insurance gains from the Grundartangi transformer failure. Revenue jumped 20% to $752.1 million. However, the company disclosed that its disclosure controls remain ineffective due to an unremediated material weakness at its Jamalco joint venture, a red flag for investors. Liquidity is strong at $784.9 million, including $343.4 million in cash, providing ample runway for the Mt. Holly restart and new smelter project. The results underscore the company's leverage to aluminum prices but also highlight persistent internal control deficiencies.
At the time of this filing, CENX was trading at $44.51 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $4.5B. The 52-week trading range was $20.91 to $70.43. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.