Building a Scalable Hedging Program for a Growing Aluminum Manufacturer
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8 octobre 2026
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A Midwest-based aluminum extruder and manufacturer backed by a private equity sponsor was in a period of strong growth and actively integrating a recent acquisition. As a significant consumer of aluminum billet, the company sought to strengthen its approach to managing commodity price exposure and build a more scalable hedging infrastructure. FTI Consulting was engaged to assess the existing program and identify key opportunities for improvement.
Our Impact:
- Leadership now has an independent, consolidated view of aluminum exposure and residual risk, with clear transparency into how hedge positions align with forecasted sales and procurement commitments.
- The company closed structural gaps and enhanced hedge sizing, execution and cost efficiency, establishing a scalable framework aligned to its continued growth and acquisition integration.
- Management gained practical guidance and a ready-to-use dashboard, providing the visibility needed to actively monitor exposure and make hedging decisions with greater confidence.
Our Role:
- FTI Consulting assessed the company’s hedge strategy, methodology and governance framework to evaluate alignment between core operations, underlying aluminum exposure and existing hedging activity.
- Our economic consulting experts analyzed historical hedge positions against sales forecasts to identify key risks, timing mismatches and hedge coverage gaps across the company’s commodity risk profile.
- The team delivered targeted recommendations on hedge sizing and execution, while identifying structural gaps, cost optimization opportunities and key counterparty and third-party dependencies.
- Our experts developed a ready-to-use Excel dashboard tool integrating historical hedge positions, sales forecasts, procurement agreements and market data into a unified view, providing transparency into underlying exposure and residual risk.
Date
8 octobre 2026
Contacts
Senior Managing Director, Leader of Securities, Commodities & Derivatives
Managing Director
