Alcoa (AA) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $425 million ($1.60 per share), with adjusted net income of $373 million ($1.40 per share), driven by higher aluminum prices and strong operational execution despite Middle East disruptions and Cyclone Narelle.

• Safety performance improved, with lower injury rates and increased leadership presence in the field.

• Strategic progress included advancing mine approvals in Western Australia, Massena East site monetization, and the San Ciprián smelter restart completed in April 2026.

• Aluminum prices rose 10–12% sequentially, while alumina prices and shipments declined due to market and supply chain disruptions.

Financial highlights

• Revenue for Q1 2026 was $3.2 billion, down 7% sequentially and year-over-year, mainly due to lower alumina volumes.

• Adjusted EBITDA excluding special items was $595 million, up $68 million sequentially, but down from $798 million in Q1 2025.

• Free cash flow was -$298 million, reflecting working capital build and capital expenditures; cash balance at quarter-end was $1.4 billion.

• Dividend payments totaled $27 million in Q1 2026.

Outlook and guidance

• 2026 alumina production and shipments expected at 9.7–9.9 million and 11.8–12.0 million metric tons; aluminum production and shipments at 2.4–2.6 million and 2.6–2.8 million metric tons.

• Q2 2026: Alumina segment Adjusted EBITDA expected to be $15 million unfavorable, Aluminum segment $55 million favorable; Section 232 tariff costs to rise by $35 million.

• Environmental and ARO payments for 2026 forecasted at up to $360 million.