13 Best Magnesium Stocks to Buy Right Now

10. Kaiser Aluminum Corporation (NASDAQ:KALU)

Number of Hedge Fund Holders: 14

Kaiser Aluminum Corporation (NASDAQ:KALU) focuses on producing semi-fabricated specialty aluminum and magnesium alloys for the aerospace, defense, packaging, and automotive sectors. The company produces high-performance magnesium-aluminum alloys, which are extensively used in lightweight aerospace components, military vehicle armor, and structural applications.

Kaiser Aluminum Corporation (NASDAQ:KALU) reported total net sales of over $3 billion for the year ended December 31, 2024, regardless of the broader market challenges. Its conversion revenue was at $1.46 billion, a decrease of 1% year-on-year, whereas shipments saw a decrease of 2% to 24 million pounds. On the other hand, its adjusted EBITDA saw an improvement, up to $217 million, an increase of $7 million, with a 60-basis-point margin surge to 14.9%.

Moreover, Kaiser Aluminum Corporation’s (NASDAQ:KALU) General Engineering and Automotive segments observed growth, with their revenues rising by 3% to $313 million and $120 million, respectively. However, its Aerospace and High-Strength segments’ revenue decreased 1% to $530 million, whereas Packaging’s revenue dropped 3% to $490 million. Furthermore, Kaiser Aluminum held a strong liquidity position, with $572 million in funds and no major debt maturities expected till 2028, enhancing its financial stability.

Additionally, the company continues its investments in capacity expansions in its Warwick and Trentwood mills, in order to enhance coated product capabilities and strengthen its magnesium-alloy portfolio for the aerospace industry. Furthermore, its capital expenditures stood at $181 million in 2024, with a forecasted decrease to $125 million in 2025, increasing its cash flow to over $100 million.

For 2025, Kaiser Aluminum Corporation (NASDAQ:KALU) expects its aerospace shipments to decrease by 5%-7% due to a reduction in excess inventory by manufacturers. However, as aircraft production increases, the demand is forecasted to recover in 2026. Given its strategic investments and focus on lightweight magnesium-aluminum alloys, it stands among the best magnesium stocks.