Alcoa (AA) investor relations material

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.

• Adjusted EBITDA excluding special items rose to $595 million, up $68 million sequentially, supported by higher metal prices.

• Revenue declined 7% sequentially to $3.2 billion, reflecting lower alumina shipments but higher aluminum prices.

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

• San Ciprián smelter restart completed, supporting higher shipments and operational flexibility.

Financial highlights

• Revenue was $3.2 billion, down from $3.45 billion in Q4 2025, primarily due to lower alumina volumes.

• Adjusted net income was $373 million ($1.40/share), and adjusted EBITDA was $595 million, both up sequentially.

• Free cash flow was -$298 million, reflecting working capital build and capital expenditures.

• Cash balance at quarter-end was $1.4 billion; adjusted net debt stood at $1.8 billion.

• Dividend payments totaled $27 million in Q1 2026.

Outlook and guidance

• 2026 alumina production expected at 9.7–9.9 million metric tons; aluminum production at 2.4–2.6 million metric tons.

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

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

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

• Operational tax expense for Q2 expected at $110–$120 million.