Business, Product and Geographical Area Information and Concentration of Risk

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Business, Product and Geographical Area Information and Concentration of Risk

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 single 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):

	Year Ended December 31,
	2025			2024 As Adjusted1			2023 As Adjusted1
Net sales	$	3,373.0		$	3,024.0		$	3,087.0
Less:
Cost of products sold, excluding depreciation and amortization
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
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

1.Adjusted to reflect the retrospective change in inventory valuation methodology from LIFO to WAC. See Note 18 for further discussion.

2.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 (losses) upon settlement of $27.0 million, ($0.2) million, and ($21.4) million in 2025, 2024, and 2023, respectively.

3.Manufacturing costs primarily includes labor, utilities, supplies, metal valuation impacts, metal profits, and other materials, excluding alloys, incurred at our various production facilities.

4.Plant overhead includes salaried employee costs, property taxes, and insurance associated with our various production facilities.

5.Other cost of products sold primarily includes accretion expense related to CAROs, gains and losses on operating asset disposals, and major maintenance costs.

6.Employee costs include indirect labor salaries, benefits, and incentive compensation.

7.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):

	Year Ended December 31,
	2025		2024		2023
Net sales:
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
Timing of revenue recognition:
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

1.Beginning January 1, 2025, Other Products is combined with GE Products.

The following table presents geographic information for net sales based on country of origin and Property, plant and equipment, net (in millions of dollars):

	Year Ended December 31,
	2025		2024		2023
Net sales to unaffiliated customers:
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,
	2025		2024		2023
Property, plant and equipment, net:
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

1.Foreign reflects our London, Ontario production facility.

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:

	Year Ended December 31,
	2025			2024			2023
Percentage of Net sales:
Export sales		7	%		10	%		10	%
Percentage of total annual primary aluminum supply (lbs):
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.