News about Alcoa

Alcoa beat earnings expectations for the third quarter, with adjusted earnings of $1.82 per share versus analysts' forecast of $1.54, while sales of $3.7 billion fell short of the $3.8 billion expected. Sales grew 23.7%, GAAP earnings more than doubled to $1.81 per share, and profit margins rose from 7.7% to 13%. The company generated $472 million in free cash flow, equal to 97.7% of reported net income, and CEO William F. Oplinger said aluminum production increased thanks to refinery performance and acquisitions. Management reaffirmed its 2026 targets of shipping 2.6 to 2.8 million metric tons of aluminum and 11.5 to 11.6 million metric tons of alumina, though input costs may be higher and weigh on profitability. Most analysts still expect Alcoa to end 2026 with $6.81 per share in profit, valuing the stock at 6.3x current-year earnings.

Alcoa shares rose 8% to $43.69 in morning trading after Q3 2026 adjusted earnings of $1.82 per share beat the $1.49 consensus, although revenue of $3.7 billion missed the $3.76 billion forecast. The company agreed to sell portions of its Massena East site in New York for data center development, with potential proceeds of up to $315 million. Aluminum output rose for a sixth consecutive quarter, the Alumar smelter restart in Brazil was completed, and alumina output grew 11% sequentially. Lower prices and shipments cut Aluminum segment revenue 9% from the prior quarter, and Alcoa expects $30 million in higher raw material costs and $30 million in adverse alumina costs in Q4 2026. The article highlights whether the AliGroup acquisition of South32's bauxite, alumina and aluminum assets, funded partly by a $2.6 billion senior notes offering, closes in the first half of 2027.