Alcoa Corp Earnings Summary — Q2 FY2026

• Reported record quarterly revenue of $4 billion, driven by an 18% increase in aluminum shipments and higher realized prices.
• Entered a definitive agreement to acquire South32’s interests in bauxite, alumina, and aluminum assets for $4.1 billion plus contingent consideration.
• Adjusted EBITDA increased 51% sequentially to $901 million, despite higher production costs at the Pinjarra refinery in Australia.
• Successfully completed multiple smelter capacity restarts at San Ciprián (Spain), Alumar (Brazil), Lista (Norway), and Portland (Australia).
• Strengthened the balance sheet by redeeming the remaining $219 million of 6.125% Senior Notes due 2028.
• Alumina production faced headwinds, decreasing 6% sequentially due to instability at the Pinjarra refinery and gas disruptions from Cyclone Narelle.
• Generated strong free cash flow of $422 million and ended the quarter with a cash balance of $1.4 billion.
• Ratified new four-year collective bargaining agreements in Australia and the United States, and five-year deals in Canada.

Alcoa lowered its 2026 Alumina production outlook to 9.5–9.6 million metric tons (down 0.2–0.3M) due to Western Australia refinery instability. Aluminum segment production remains unchanged at 2.4–2.6 million metric tons. Third-quarter Alumina EBITDA is expected to see a $10M tailwind from recovered stability, while Aluminum Segment EBITDA will benefit from production efficiencies offsetting seasonally lower energy sales in Brazil.

Improving

The transition from a net loss position in prior years to a $407M quarterly profit, combined with record revenue and a major strategic acquisition, indicates significant operational momentum despite short-term refinery disruptions.

The company is optimizing its portfolio through the South32 acquisition to reinforce its pure-play upstream position. Management expects production efficiencies to ramp up through the second half of 2026, though results remain sensitive to carbon pricing and regional energy market volatility.