Highlights

  • Century Aluminum shows 403.50% basic EPS growth, a P/E of 5.22 and PEG of 0.28.
  • Second quarter Century stockholder net income was $249.3 million, against a $4.6 million loss.
  • Century completed the Hawesville sale on February 2, 2026 for $200.0 million in cash.
  • Cash and equivalents were $343.4 million and liquidity was $784.9 million at June 30.

Century Aluminum (NASDAQ:CENX) reported second quarter 2026 net income attributable to Century stockholders of $249.3 million, and the undervalued growth stock figures read 403.50% one-year growth in basic earnings per share, a trailing twelve-month P/E of 5.22 and an expected-basis PEG of 0.28, with shares trading at USD 34.69 on October 28, 2026, up 3.98%. Alongside those figures, the primary aluminum and alumina producer entered a joint development agreement with Emirates Global Aluminium for a new Oklahoma smelter on January 26, completed the sale of its Hawesville, Kentucky facility on February 2, and filed its second quarter Form 10-Q on August 6.

Century Aluminum is headquartered in Chicago, Illinois, and incorporated in Delaware. It is a global producer of primary aluminum and alumina with production facilities in the United States, Iceland and Jamaica. Its primary aluminum smelters are concentrated in the United States and Iceland, and it holds a 55% joint venture interest in the Jamalco alumina refinery in Jamaica. It also owns a carbon anode facility in the Netherlands.

Growth: Second Quarter Earnings, Sales and Shipments

Net income attributable to Century stockholders was $249.3 million in the second quarter against a net loss of $4.6 million a year earlier, and $586.8 million for the six months against $25.1 million. Basic earnings per share were $2.52 against a loss of $0.05, and diluted earnings per share were $2.39 against a loss of $0.05.

Net sales were $752.1 million against $628.1 million, and gross profit was $227.9 million against $33.6 million. The six-month results include a $287.9 million gain on the sale of Hawesville and a $73.1 million gain on insurance proceeds, of which $40.1 million fell in the second quarter.

Primary aluminum shipments were 130,632 tonnes against 175,741 tonnes. The company said six-month gross profit rose by $255.8 million, primarily on metal price realization of $457.4 million. The average LME price was $3,576 per tonne in the second quarter against $3,191 in the first.

Valuation: P/E of 5.22, PEG of 0.28 and Cash Generation

The P/E ratio of 5.22 is measured on trailing twelve-month earnings, and the PEG ratio of 0.28 on expected growth. Total Century shareholders' equity was $1,403.1 million at June 30, 2026, against $805.6 million at December 31, 2025. Net cash provided by operating activities was $236.0 million for the six months against $80.2 million.

On the second quarter call, management said cash on hand exceeded total debt, and said capital returns would be discussed once liquidity, sustaining capital and organic growth priorities are met.

Capital and Balance Sheet: Liquidity, Debt and Repurchase Program

Liquidity was $784.9 million at June 30, including $343.4 million of cash and cash equivalents and $396.7 million of unused availability under credit facilities. Debt was $480.0 million, consisting of 6.875% senior secured notes due August 1, 2032 and 2.75% convertible notes due May 1, 2028. Iceland revolving credit borrowings were nil at June 30 against $61.0 million at December 31. The company received a $94.3 million 45X tax credit refund on July 21.

Capital expenditures paid were $134.4 million for the six months, and the company estimated 2026 capital spending of approximately $180.0 to $190.0 million. Under a repurchase program authorizing up to $130.0 million, no repurchases have been made since April 2015, and $43.7 million remained available.

Disclosed Risks and Outlook

The company reported that a material weakness in internal control over financial reporting, relating to the Jamalco joint venture and its consolidation, was not remediated as of June 30, 2026. Glencore accounted for approximately 44.0% of net sales in the second quarter against 58.5% a year earlier.

The Grundartangi smelter has run at reduced output since the October 2025 transformer failure, which cut production by approximately two-thirds. The idled potline restarted in the second half of April, and the company expects a return to near full production by the end of the third quarter. Insurance recoveries were $83.1 million through June 30, with $18.5 million more in July. The company also said the Midwest premium may change rapidly with tariff policy, including the Section 232 rate of 50% on imported primary aluminum.

For the third quarter, management guided adjusted EBITDA of $325 million to $345 million on the second quarter call. Construction of the 750,000 tonne Oklahoma smelter, owned 60% by Emirates Global Aluminium and 40% by Century, is expected to start by the end of 2026, subject to engineering, a power supply agreement and a definitive joint venture agreement.