Aluar Aluminio Argentino (ALUA) Q2 25/26 earnings summary

Executive summary

• H1 FY25/26 revenue reached $1,234.4bn and operating income $130.1bn; net income was $39.8bn, while shareholder-attributable profit was $27.4bn.

• Higher operating results were outweighed by a $85.8bn YoY deterioration in financial results, linked mainly to peso depreciation exceeding inflation on the net foreign-currency liability position.

• Primary aluminum production ran at full capacity; growth in external shipments supported operating results, while domestic industrial demand remained subdued.

Financial highlights

• Six-month net sales were $1,234.4bn vs $1,045.0bn YoY; gross profit was $239.9bn vs $167.1bn.

• Operating income increased to $130.1bn from $112.7bn; income before tax declined to $63.0bn from $94.1bn.

• Net income rose to $39.8bn from $36.0bn; basic EPS was $9.79 vs $12.13, and shareholder-attributable profit was $27.4bn vs $32.6bn.

• Financial result was a $68.4bn loss vs an $18.4bn loss; income tax expense fell to $23.2bn from $58.1bn.

• Operating cash flow was $259.2bn vs cash use of $20.2bn; investing used $238.4bn and financing used $38.1bn.

Outlook and guidance

• Primary aluminum production is at full capacity; aluminum prices rose from roughly $2,650/t at the start of Q2 toward $3,000/t, while alumina prices eased and remain historically low.

• Export volumes to established destinations are expected to remain stable if international trade conditions do not materially change; domestic demand depends on inflation, rates, disposable income and activity.

• The 336 MW wind expansion is on schedule for completion in Q4 2026; it would bring total nominal renewable capacity to 582 MW.

• Abasto solar project (~29 MWp) and San Fernando battery storage (40 MW, 160 MWh) are expected to finish in Q4 2026, with estimated investment of $14m and $20m, respectively.