Alcoa Corporation reported record second-quarter 2026 revenue of $3.97 billion, a 24% sequential increase, while lowering its annual alumina production outlook due to operational challenges at its Pinjarra refinery in Australia. The company missed earnings expectations with adjusted EPS of $2.12, falling short of the Street estimate of $2.25, despite revenue beating the analyst consensus of $3.94 billion. Operational performance was mixed, with the Aluminum segment achieving record adjusted EBITDA, while the Alumina segment faced higher costs and lower production.

Q2 2026 Financial Highlights

Alcoa achieved record quarterly revenue driven by higher aluminum shipments and increased average realized prices. Adjusted EBITDA excluding special items rose $306 million sequentially to $901 million, supported by stronger aluminum prices, higher shipments, and improved product mix. Special items for the quarter included a mark-to-market loss on Ma'aden shares of $123 million and losses on energy contracts of $45 million.

Segment Performance

In the Aluminum segment, revenue rose 31% sequentially to $3.3 billion, driven by higher shipments, stronger average realized prices, and improved value-added product premiums. Shipments increased by 113,000 metric tons sequentially to 726,000 metric tons. The segment delivered record adjusted EBITDA of $1.1 billion and an EBITDA margin of 32.3%, benefiting from higher LME prices, regional premiums, and solid demand in North America and Europe. Production increased by 30,000 metric tons sequentially, aided by the restart of the San Ciprián smelter in Spain and progress at the Alumar smelter in Brazil.

In the Alumina segment, revenue declined 3% sequentially to $637 million, primarily due to lower bauxite offtake, reduced supply agreement volumes, and operational challenges at the Pinjarra refinery. Adjusted EBITDA decreased $56 million sequentially, impacted by higher production costs, lower cost absorption, and increased fuel oil and diesel expenses. Production decreased 6% sequentially to 2.2 million metric tons, while third-party shipments remained flat at 1.6 million metric tons.

2026 Outlook

Alcoa reduced its 2026 alumina production projection to a range of 9.5–9.6 million metric tons, a decrease of 0.2–0.3 million metric tons from prior guidance, primarily due to instability and gas supply disruptions at the Pinjarra refinery. The 2026 alumina shipments projection was also lowered to 11.5–11.6 million metric tons. Total Aluminum segment production and shipments projections remain unchanged at 2.4–2.6 million metric tons and 2.6–2.8 million metric tons, respectively. For the third quarter of 2026, the company expects alumina segment performance to improve by approximately $10 million, while the aluminum segment is projected to remain broadly stable. Section 232 tariff costs on U.S. imports of aluminum from Canada are expected to decrease by approximately $10 million.

Alcoa reported second-quarter sales of $3.966 billion, beating the analyst consensus estimate of $3.939 billion by 0.67 percent. This represents a 31.41 percent increase over sales of $3.018 billion reported in the same period last year. Despite the revenue growth, the company's adjusted earnings per share of $2.12 missed the analyst consensus estimate of $2.25 by 5.78 percent. The reported EPS is a significant 443.59 percent increase over earnings of $0.39 per share from the prior-year quarter. Following the announcement, Alcoa stock was down 2.88% to $45.45 in extended trading.

Alcoa Financial Overview

Operational Highlights

Alcoa reported mixed production metrics for the quarter. Alumina production decreased 6% sequentially to 2.2 million metric tons, while third-party shipments remained flat at 1.6 million metric tons. In the Aluminum segment, production increased 5% sequentially to 636,000 metric tons, and total shipments rose 18% sequentially. The company’s total third-party revenue of $4 billion increased 24% sequentially, driven by a 31% increase in the Aluminum segment, partially offset by a 3% decrease in the Alumina segment.

“During the second quarter, in addition to delivering strong financial results that captured favorable aluminum prices, our team executed on strategic initiatives, most notably the announced agreement with South32,” said Alcoa CEO William F. Oplinger.