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 $4.1 billion acquisition of South32's bauxite, alumina, and aluminum assets, expected to close in 1H27, with mechanisms including a contingent value right up to $750 million.

• Advanced strategic investments, including a $65 million expansion at Mosjøen smelter in Norway and a new gallium plant in Australia.

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

• Improved safety trends and operational excellence, with five first-half production records.

Financial highlights

• Q2 2026 revenue reached $3.97 billion, up $773 million sequentially; adjusted EBITDA excluding special items rose to $901 million.

• Net income attributable to shareholders was $407 million; adjusted net income was $562 million ($2.12 per share).

• Free cash flow for Q2 2026 was $422 million, with $608 million from operations.

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

• Return on equity for the first half was 26.4%.

Outlook and guidance

• 2026 alumina production guidance reduced to 9.5–9.6 million metric tons due to Pinjarra refinery disruptions; aluminum production guidance unchanged at 2.4–2.6 million metric tons.

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

• Transformation EBITDA impact expected at ~$100 million negative for FY26.

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

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