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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Assumptions Used for Benefit Obligation

Key Assumptions. The following table presents the weighted average assumptions used to determine benefit obligations:

 

 

 

Pension Plans1

 

 

OPEB

 

 

Salaried VEBA

 

 

 

As of December 31,

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Discount rate

 

 

5.53

%

 

 

5.54

%

 

 

5.15

%

 

 

5.48

%

 

 

5.01

%

 

 

5.40

%

Rate of compensation increase

 

 

2.56

%

 

 

2.56

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 

1.
Assumptions for our pension plans are weighted based on the total benefit obligations of each.
Schedule of Assumptions Used to Determine Net Periodic Postretirement and Postemployment Benefit Cost

The following table presents the weighted average assumptions used to determine net periodic postretirement and postemployment benefit cost:

 

 

 

Pension Plans1

 

 

OPEB

 

 

Salaried VEBA

 

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

2025

 

 

2024

 

 

2023

 

 

2025

 

 

2024

 

 

2023

 

Discount rate

 

 

5.54

%

 

 

5.00

%

 

 

5.19

%

 

 

5.48

%

 

 

4.92

%

 

 

5.14

%

 

 

5.40

%

 

 

4.89

%

 

 

5.10

%

Expected long-term return on plan assets2

 

 

6.31

%

 

 

6.31

%

 

 

6.33

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

5.75

%

 

 

5.75

%

 

 

5.75

%

Rate of compensation increase

 

 

2.56

%

 

 

2.56

%

 

 

2.63

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 

1.
Assumptions for our pension plans are weighted based on the total benefit obligations of each.
2.
The expected long-term rate of return assumption for the Salaried VEBA is based on the targeted investment portfolios provided to us by the trustee of the Salaried VEBA.
Schedule of Changes in Benefit Obligations The following table presents the benefit obligations and funded status of our pension plans, OPEB, and the Salaried VEBA and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars):

 

 

Pension Plans

 

 

OPEB

 

 

Salaried VEBA

 

 

 

As of December 31,

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligation at beginning of year

 

$

30.7

 

 

$

30.5

 

 

$

64.7

 

 

$

68.8

 

 

$

42.9

 

 

$

46.9

 

Foreign currency translation loss (gain)

 

 

0.2

 

 

 

(0.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Service cost

 

 

3.4

 

 

 

3.6

 

 

 

1.0

 

 

 

1.1

 

 

 

—

 

 

 

—

 

Interest cost

 

 

1.7

 

 

 

1.6

 

 

 

3.5

 

 

 

3.3

 

 

 

2.2

 

 

 

2.2

 

Prior service cost1

 

 

—

 

 

 

2.2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Actuarial loss (gain)2

 

 

0.6

 

 

 

(1.6

)

 

 

3.6

 

 

 

(6.8

)

 

 

(2.3

)

 

 

(1.4

)

Plan participants contributions

 

 

0.1

 

 

 

0.1

 

 

 

0.2

 

 

 

0.2

 

 

 

—

 

 

 

—

 

Benefits paid

 

 

(0.7

)

 

 

(0.7

)

 

 

(3.0

)

 

 

(1.9

)

 

 

(4.7

)

 

 

(4.8

)

Settlements3

 

 

—

 

 

 

(4.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Obligation at end of year4

 

 

36.0

 

 

 

30.7

 

 

 

70.0

 

 

 

64.7

 

 

 

38.1

 

 

 

42.9

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair market value of plan assets at beginning of year

 

 

22.5

 

 

 

20.5

 

 

 

—

 

 

 

—

 

 

 

42.9

 

 

 

43.1

 

Foreign currency translation gain

 

 

0.2

 

 

 

0.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Actual return on assets

 

 

1.9

 

 

 

0.9

 

 

 

—

 

 

 

—

 

 

 

6.7

 

 

 

3.9

 

Plan participants contributions

 

 

0.1

 

 

 

0.1

 

 

 

0.2

 

 

 

0.2

 

 

 

—

 

 

 

—

 

Company contributions

 

 

6.2

 

 

 

5.9

 

 

 

2.8

 

 

 

1.7

 

 

 

2.9

 

 

 

0.7

 

Benefits paid

 

 

(0.7

)

 

 

(0.7

)

 

 

(3.0

)

 

 

(1.9

)

 

 

(4.7

)

 

 

(4.8

)

Settlements3

 

 

—

 

 

 

(4.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fair market value of plan assets at end of year

 

 

30.2

 

 

 

22.5

 

 

 

—

 

 

 

—

 

 

 

47.8

 

 

 

42.9

 

Net funded status

 

$

(5.8

)

 

$

(8.2

)

 

$

(70.0

)

 

$

(64.7

)

 

$

9.7

 

 

$

—

 

Amounts recognized on our Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

$

1.3

 

 

$

1.6

 

 

$

—

 

 

$

—

 

 

$

9.7

 

 

$

—

 

Accrued salaries, wages and related expenses

 

 

—

 

 

 

—

 

 

 

(3.7

)

 

 

(3.1

)

 

 

—

 

 

 

—

 

Pension and OPEB

 

 

(7.1

)

 

 

(9.8

)

 

 

(66.3

)

 

 

(61.6

)

 

 

—

 

 

 

—

 

Total

 

$

(5.8

)

 

$

(8.2

)

 

$

(70.0

)

 

$

(64.7

)

 

$

9.7

 

 

$

—

 

Cumulative gain (loss) recognized in AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated net actuarial gain

 

$

3.9

 

 

$

4.2

 

 

$

17.6

 

 

$

23.1

 

 

$

14.5

 

 

$

8.2

 

Prior service cost

 

 

(6.7

)

 

 

(7.6

)

 

 

—

 

 

 

—

 

 

 

(11.3

)

 

 

(14.3

)

Total

 

$

(2.8

)

 

$

(3.4

)

 

$

17.6

 

 

$

23.1

 

 

$

3.2

 

 

$

(6.1

)

 

1.
In 2024, prior service cost for our pension plans resulted from a plan amendment clarifying certain plan provisions of the Kaiser Aluminum Warrick pension plan going back to the date of our acquisition of Warrick.
2.
Actuarial gains and losses for our defined benefit plans primarily resulted from changes in certain key actuarial assumptions and updates to census data.
3.
In 2024, we entered into a group annuity purchase agreement under which approximately $4.5 million of obligations for certain participants of the Kaiser Aluminum Canada Limited Retirement Plan for Salaried Employees were transferred to an insurance company. The annuitization was funded through existing plan assets and does not change the amount of the monthly pension benefits received by the affected participants.
4.
For the pension plans, the benefit obligation is the projected benefit obligation. For the Salaried VEBA and OPEB, the benefit obligation is the APBO.
Schedule of Expected Benefit Payments

The following table presents the net benefits expected to be paid (in millions of dollars):

 

 

 

Year Ended December 31,

 

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

 

2030

 

 

2031-2035

 

Pension benefit payments

 

$

1.0

 

 

$

1.3

 

 

$

1.5

 

 

$

1.8

 

 

$

2.0

 

 

$

13.7

 

Salaried VEBA benefit payments1

 

 

4.7

 

 

 

4.5

 

 

 

4.3

 

 

 

4.0

 

 

 

3.7

 

 

 

14.6

 

OPEB payments

 

 

3.7

 

 

 

4.4

 

 

 

5.1

 

 

 

5.8

 

 

 

6.3

 

 

 

37.9

 

Total

 

$

9.4

 

 

$

10.2

 

 

$

10.9

 

 

$

11.6

 

 

$

12.0

 

 

$

66.2

 

 

1.
Such amounts are based on benefit amounts and certain key assumptions obtained from the Salaried VEBA trustees and will be paid out of the Salaried VEBA plan assets. We have an ongoing obligation to make variable cash contributions to the Salaried VEBA, up to a maximum of $2.9 million annually based on our cash flow.
Summary of Asset Class Allocation per Pension Plan Investment Policy and Weighted Average Asset Allocation

The following table presents the weighted-average target and actual asset class allocations for our pension plans:

Asset class

 

2025 Target allocation

 

As of December 31, 2025

Equities

 

43%

 

43%

Fixed income

 

51%

 

51%

Real estate investments

 

6%

 

6%
Schedule of Fair Value of Plan Assets

The following table presents the fair value of plan assets at December 31, 2025 and 2024, classified under the appropriate level of the fair value hierarchy (in millions of dollars):

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

Plan Assets in the Fair Value Hierarchy:

 

Level 1

 

 

Salaried VEBA – Equity investment funds in registered investment companies1

 

$

27.5

 

 

$

25.2

 

 

Salaried VEBA – Fixed income investment funds in registered investment companies2

 

 

16.9

 

 

 

16.8

 

 

Salaried VEBA – Cash and money market investments

 

 

0.6

 

 

 

0.2

 

 

Pension plans – Diversified investment funds in pooled separate accounts3

 

 

24.5

 

 

 

17.1

 

 

Pension plans – Fixed income investment funds in registered investment companies2

 

 

5.7

 

 

 

—

 

 

Pension plans – Diversified investment funds in registered investment companies4

 

 

—

 

 

 

5.4

 

 

Deferred compensation program – Diversified investment funds in registered investment companies4

 

 

6.9

 

 

 

11.9

 

 

Total plan assets in the fair value hierarchy

 

$

82.1

 

 

$

76.6

 

 

 

1.
Equity investment funds in registered investment companies. This category represents investments in equity funds.
2.
Fixed income investment funds in registered investment companies. This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest primarily in bonds, debentures, notes, securities with equity and fixed-income characteristics, cash equivalents, securities backed by mortgages and other assets, loans, pooled or collective investment vehicles made up of fixed‑income securities and other fixed-income obligations of banks, corporations, and governmental authorities.
3.
Diversified investment funds in pooled separate accounts. This category represents investments in various pooled separate accounts that hold a diversified portfolio of: (i) equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalizations; (ii) fixed income securities such as corporate bonds and government bonds; and (iii) commercial real estate, including mortgage loans which are backed by the associated properties. The pooled separate accounts are valued daily based on the market value of the underlying net assets in each separate account. The majority of the underlying net assets have observable Level 1 pricing inputs which are used to determine the unit value of the pooled separate account which is not publicly quoted.
4.
Diversified investment funds in registered investment companies. This category represents investments in funds that hold a diversified portfolio of: (i) U.S. and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents.
Schedule of Total Expense Related to Benefit Plans

The following table presents the total expense related to all benefit plans (in millions of dollars):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Defined contribution plans1

 

$

18.9

 

 

$

18.6

 

 

$

18.1

 

Deferred compensation plan2

 

 

1.5

 

 

 

1.3

 

 

 

1.2

 

Multiemployer pension plans1,3

 

 

6.2

 

 

 

6.1

 

 

 

5.6

 

Net periodic postretirement and postemployment benefit cost relating to defined benefit plans4

 

 

9.5

 

 

 

9.0

 

 

 

13.4

 

Total

 

$

36.1

 

 

$

35.0

 

 

$

38.3

 

 

1.
Substantially all of these charges related to employee benefits are in COGS with the remaining balance in SG&A and R&D within our Statements of Consolidated Income.
2.
Deferred compensation plan expense is included within SG&A and R&D in our Statements of Consolidated Income.
3.
See Note 6 for more information on our multiemployer defined benefit pension plans. For the year ended December 31, 2024, the expense presented excludes a $4.6 million charge to Restructuring costs (see Note 12).
4.
The current service cost component of Net periodic postretirement and postemployment benefit cost relating to both the pension plans and the OPEB plan is included within COGS in our Statements of Consolidated Income for all periods presented. All other components of Net periodic postretirement and postemployment benefit cost are included within Other income, net, in our Statements of Consolidated Income.
Schedule of Net Benefit Costs The following table presents the components of Net periodic postretirement and postemployment benefit cost relating to our defined benefit plans (in millions of dollars):

 

 

 

Pension Plans

 

 

OPEB

 

 

Salaried VEBA

 

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

2025

 

 

2024

 

 

2023

 

 

2025

 

 

2024

 

 

2023

 

Service cost

 

$

3.4

 

 

$

3.6

 

 

$

3.8

 

 

$

1.0

 

 

$

1.1

 

 

$

1.1

 

 

$

—

 

 

$

—

 

 

$

—

 

Interest cost

 

 

1.7

 

 

 

1.6

 

 

 

1.3

 

 

 

3.5

 

 

 

3.3

 

 

 

3.4

 

 

 

2.2

 

 

 

2.2

 

 

 

2.9

 

Expected return on plan assets

 

 

(1.5

)

 

 

(1.4

)

 

 

(1.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2.3

)

 

 

(2.2

)

 

 

(2.2

)

Amortization of prior service cost1

 

 

0.9

 

 

 

0.8

 

 

 

0.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3.0

 

 

 

1.7

 

 

 

4.9

 

Amortization of net actuarial gain

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

(1.9

)

 

 

(1.1

)

 

 

(1.1

)

 

 

(0.4

)

 

 

(0.1

)

 

 

—

 

Settlement gain recognized

 

 

—

 

 

 

(0.5

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total net periodic postretirement and postemployment benefit cost

 

$

4.4

 

 

$

4.1

 

 

$

4.4

 

 

$

2.6

 

 

$

3.3

 

 

$

3.4

 

 

$

2.5

 

 

$

1.6

 

 

$

5.6

 

 

1.
We amortize prior service cost on a straight-line basis over the average remaining years of service of the active plan participants.