Alcoa (AA) Bank of America Global Metals, Mining and Steel Conference 2026 summary

Key strategic and operational highlights

• Improved safety performance in 1Q26, with a focus on critical risk management and leadership presence in the field.

• Maintained stable operations and agility amid Middle East conflict, leveraging flexible casthouse capacity and experienced teams.

• Advanced Australia mine approvals and transformation asset monetization, and completed the San Ciprián smelter restart.

• Issued notice to redeem remaining 2028 Notes, supporting balance sheet strength.

Financial performance and capital allocation

• 1Q26 net income rose to $425M, with adjusted EPS at $1.40 and adjusted EBITDA at $595M, driven by higher metal prices despite lower seasonal volumes.

• Return on equity reached 21.9% in 1Q26; cash balance remained strong at $1.4B, though working capital build led to negative free cash flow of $298M.

• Capital allocation focused on maintaining $1.0B–$1.5B adjusted net debt, sustaining operations, and returning cash to stockholders, with $27M in 1Q26 dividends.

Market and industry dynamics

• Middle East conflict pressured alumina demand and refinery margins, with weak global alumina prices and higher energy and freight costs.

• LME aluminum prices rallied 10% in 1Q26 due to supply disruptions, with regional premiums rising in North America and Europe amid import concerns.

• North America and Europe are highly exposed to Middle East supply disruptions, with significant increases in regional value-add product premiums.