Alcoa Stock Earnings Reports

Alcoa reported a strong operational and financial start to 2026 driven by execution and market tailwinds in aluminum. Safety metrics improved and leadership emphasized fatality/critical-risk management and leader time in the field. Adjusted EBITDA was $595 million and first-quarter net income attributable to Alcoa Corporation was $425 million ($1.60 per share); adjusted net income was $373 million ($1.40 per share). Revenue fell 7% sequentially to $3.2 billion, driven by seasonally lower shipments and weaker alumina/bauxite prices, while Aluminum segment revenue rose modestly on higher realized prices and the San Ciprián smelter restart (completed in April). The Middle East conflict materially disrupted regional smelting/refining flows, raising freight, energy and raw-material costs and tightening global metal markets—supporting higher LME and regional premiums but pressuring alumina margins. The company is redirecting shipments (largely to China) without changing API-based pricing and expects Q2 benefits from higher LME/Midwest premiums and higher shipments; however, Section 232 tariff costs on Canadian imports to the U.S. are expected to increase by about $35 million. Cash balance was $1.4 billion at quarter end; free cash flow was negative $298 million due to seasonal working capital build. Alcoa issued notice to redeem $219 million of 2028 notes (to be redeemed at par) and reiterated capital-allocation priorities: sustain operations, strengthen the balance sheet (target net debt $1.0–1.5 billion), then balance shareholder returns and growth investments. Two changes to 2026 outlook: modestly lower interest expense (to ~$135 million) reflecting the note redemption, and higher environmental & ARO cash payments (~$360 million vs. $325 million prior) related to Australian mining-approval agreements. Progress on strategic items: ministerial mine approvals in Western Australia remain on track for year-end 2026, Massena East site monetization is in advanced discussions, and other site monetizations are being pursued in parallel. Operationally, Alcoa is increasing value-add production to serve North American and European customers facing Middle East supply disruption; some refineries (e.g., San Ciprián) and certain refineries remain challenged on margins, while smelter restarts and ramp-ups (San Ciprián, Lista, São Luís, Portland additions) provide incremental aluminum supply.