Alcoa (AA) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $4 billion, up 24% year-over-year, driven by higher aluminum prices and increased shipments, with production records at four smelters and one refinery.

• Announced a $4.1 billion acquisition of South32's bauxite, alumina, and aluminum assets (AliGroup), expected to close in H1 2027, with bridge financing commitments of $3.1 billion secured.

• Advanced major investments, including a $65 million expansion in Norway and a final investment decision for a gallium plant in Australia.

• Secured multi-year labor agreements in Australia, the U.S., and Canada, providing workforce stability.

• Managed supply chain and energy volatility amid Middle East conflict, leveraging long-term contracts and hedges.

Financial highlights

• Q2 2026 revenue was $3,966 million, up from $3,018 million in Q2 2025 and $3,193 million in Q1 2026.

• Net income attributable to shareholders was $407 million in Q2 2026, with adjusted net income of $562 million and adjusted EPS of $2.12.

• Adjusted EBITDA for Q2 2026 was $901 million, up from $595 million in Q1 2026 and $313 million in Q2 2025.

• Free cash flow for Q2 2026 was $422 million; cash from operations reached $608 million.

• Cash balance at quarter end was $1.4 billion; adjusted net debt stood at $1.4 billion.

Outlook and guidance

• 2026 alumina production guidance reduced to 9.5–9.6 million metric tons and shipments to 11.5–11.6 million metric tons due to Pinjarra refinery disruptions.

• Aluminum segment production and shipment guidance unchanged at 2.4–2.6 million and 2.6–2.8 million metric tons, respectively.

• Q3 2026 Alumina Segment Adjusted EBITDA expected to benefit from recovered stability at Pinjarra and lower energy prices, partially offset by planned maintenance.

• Sustaining capital expenditures projected at ~$675 million for FY26.

• Working capital expected to decrease in the second half as prices move and sales progress.