Alcoa Stock Earnings Reports

Alcoa reported a strong start to 2026 driven by operational execution and higher realized aluminum prices. First-quarter revenue was $3.2 billion (down 7% sequentially), net income attributable to Alcoa was $425 million ($1.60 per share), and adjusted EBITDA was $595 million. Cash at quarter end was $1.4 billion and adjusted net debt $1.8 billion; the company issued notice to redeem the remaining $219 million of 2028 notes in May. Safety metrics improved and management emphasized leader time in the field. Key operational developments include the successful April restart of the San Ciprián smelter, continued ramp-ups at multiple smelters, inventory repositioning in North America to enable higher-value cast‑house production, and progress toward mine approvals in Western Australia with ministerial approvals still targeted by year‑end 2026. The Middle East conflict materially disrupted regional supply chains—raising freight, energy and some raw‑material costs, curtailing smelters/refineries and tightening global aluminum markets—supporting higher LME and regional premiums. Alcoa says its long‑term power contracts and hedges limit spot electricity exposure to <1% of consumption, providing a competitive cost advantage. Guidance updates: modestly lower 2026 interest expense (due to bond redemption) and higher expected environmental/ARO cash payments (~$360M). Segment outlook: Alumina is expected to be about $15M unfavorable (price, bauxite volumes, diesel), Aluminum about $55M favorable (inventory repositioning, higher premiums, San Ciprián restart), with an incremental ~ $35M of Section 232 tariff costs expected in Q2 on Canadian imports. Working capital built seasonally in Q1 (negative free cash flow of $298M) but management expects cash conversion as the year progresses. Capital expenditures remain on plan, and capital allocation will balance deleveraging, value-creating growth, and shareholder returns.