KAISER ALUMINUM CORP Segments Disclosure
17. Business, Product and Geographical Area Information and Concentration of Risk
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. Our Chairman, President and Chief Executive Officer is the chief operating decision maker (“CODM”) who evaluates our business as a operating segment and makes decisions regarding resource allocations based on Net income. 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 provides the significant segment expenses that are provided to the CODM (in millions of dollars):
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|
Year Ended December 31, |
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2025 |
|
|
2024 |
|
|
2023 |
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|||
Net sales |
|
$ |
3,373.0 |
|
|
$ |
3,024.0 |
|
|
$ |
3,087.0 |
|
|
|
|
|
|
|
|
|
|
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|||
Less: |
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|
|
|
|
|
|
|
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Cost of products sold, excluding depreciation and amortization |
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|
|
|
|
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|
|
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|||
Hedged cost of alloyed metal2 |
|
|
1,919.8 |
|
|
|
1,567.8 |
|
|
|
1,621.1 |
|
Manufacturing costs3 |
|
|
694.5 |
|
|
|
784.2 |
|
|
|
784.1 |
|
Plant overhead4 |
|
|
181.5 |
|
|
|
178.5 |
|
|
|
172.9 |
|
Freight costs |
|
|
84.1 |
|
|
|
91.6 |
|
|
|
103.3 |
|
Other cost of products sold5 |
|
|
50.7 |
|
|
|
44.5 |
|
|
|
46.8 |
|
Depreciation and amortization |
|
|
122.5 |
|
|
|
116.4 |
|
|
|
108.6 |
|
Selling, general, administrative, research and development |
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|
|
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Research and development costs |
|
|
1.4 |
|
|
|
2.2 |
|
|
|
2.9 |
|
Employee costs6 |
|
|
92.4 |
|
|
|
83.3 |
|
|
|
80.0 |
|
Other selling, general and administrative costs7 |
|
|
35.4 |
|
|
|
35.3 |
|
|
|
39.8 |
|
Restructuring costs |
|
|
1.9 |
|
|
|
7.6 |
|
|
|
5.0 |
|
Other operating charges, net |
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
Interest expense |
|
|
50.1 |
|
|
|
43.7 |
|
|
|
46.9 |
|
Other income, net – Note 13 |
|
|
(11.3 |
) |
|
|
(19.5 |
) |
|
|
(7.4 |
) |
Income tax provision |
|
|
37.5 |
|
|
|
22.3 |
|
|
|
15.2 |
|
Net income |
|
$ |
112.5 |
|
|
$ |
65.7 |
|
|
$ |
67.8 |
|
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):
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Year Ended December 31, |
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2025 |
|
|
2024 |
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2023 |
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|||
Net sales: |
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|
|
|
|
|
|
|
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|||
Aero/HS Products |
|
$ |
837.8 |
|
|
$ |
883.0 |
|
|
$ |
899.3 |
|
Packaging |
|
|
1,489.6 |
|
|
|
1,260.9 |
|
|
|
1,315.2 |
|
GE Products |
|
|
759.2 |
|
|
|
618.1 |
|
|
|
596.5 |
|
Automotive Extrusions |
|
|
286.4 |
|
|
|
251.9 |
|
|
|
254.9 |
|
Other Products1 |
|
|
— |
|
|
|
10.1 |
|
|
|
21.1 |
|
Total net sales |
|
$ |
3,373.0 |
|
|
$ |
3,024.0 |
|
|
$ |
3,087.0 |
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|
|
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Timing of revenue recognition: |
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Products transferred at a point in time |
|
$ |
2,616.9 |
|
|
$ |
2,326.5 |
|
|
$ |
2,394.8 |
|
Products transferred over time |
|
|
756.1 |
|
|
|
697.5 |
|
|
|
692.2 |
|
Total net sales |
|
$ |
3,373.0 |
|
|
$ |
3,024.0 |
|
|
$ |
3,087.0 |
|
The following table presents geographic information for net sales based on country of origin and Property, plant and equipment, net (in millions of dollars):
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Year Ended December 31, |
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2025 |
|
|
2024 |
|
|
2023 |
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Net sales to unaffiliated customers: |
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|
|
|
|
|
|
|
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Domestic |
|
$ |
3,252.1 |
|
|
$ |
2,920.0 |
|
|
$ |
2,986.0 |
|
Foreign1 |
|
|
120.9 |
|
|
|
104.0 |
|
|
|
101.0 |
|
Total net sales |
|
$ |
3,373.0 |
|
|
$ |
3,024.0 |
|
|
$ |
3,087.0 |
|
|
|
As of December 31, |
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2025 |
|
|
2024 |
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|
2023 |
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Property, plant and equipment, net: |
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|
|
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|
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Domestic |
|
$ |
1,118.4 |
|
|
$ |
1,134.5 |
|
|
$ |
1,025.3 |
|
Foreign1 |
|
|
26.8 |
|
|
|
26.7 |
|
|
|
26.8 |
|
Total Property, plant and equipment, net |
|
$ |
1,145.2 |
|
|
$ |
1,161.2 |
|
|
$ |
1,052.1 |
|
The aggregate foreign currency transaction gain (loss) included in determining Net income was $0.1 million and ($0.3) million for 2025 and 2024, respectively. The aggregate foreign currency transaction gain included in determining Net income was immaterial for 2023.
Concentrations. For the years ended December 31, 2025, December 31, 2024, and December 31, 2023, one customer represented 16%, 16%, and 18%, respectively, of Net sales, and a second customer represented 15%, 15%, and 16%, respectively, of Net sales.
One customer accounted for 21% and a second customer accounted for 15% of the accounts receivable balance at December 31, 2025. One customer accounted for 17%, a second customer accounted for 17%, and a third customer accounted for 15% of the accounts receivable balance at December 31, 2024.
The following table presents information about export sales and primary aluminum supply from our major suppliers:
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Year Ended December 31, |
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2025 |
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|
2024 |
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2023 |
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Percentage of Net sales: |
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Export sales |
|
|
7 |
% |
|
|
10 |
% |
|
|
10 |
% |
|
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|
|
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Percentage of total annual primary aluminum supply (lbs): |
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|
|
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Supply from our top five major suppliers |
|
|
82 |
% |
|
|
80 |
% |
|
|
83 |
% |
Supply from our largest supplier |
|
|
24 |
% |
|
|
21 |
% |
|
|
37 |
% |
Supply from our second and third largest suppliers combined |
|
|
36 |
% |
|
|
38 |
% |
|
|
28 |
% |
At December 31, 2025, approximately 65% of our employees were covered by collective bargaining agreements and 26% of those employees were covered by collective bargaining agreements with expiration dates occurring within one year from December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 22, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.