Alcoa Corporation

Revenue increased 24% year over year to $4 billion, the highest quarterly revenue in Alcoa Corporation’s almost 10-year history. Adjusted EBITDA was $901 million; adjusted net income was $562 million, up $189 million sequentially; and EPS was $1.53, while reported net income attributable to Alcoa was $407 million versus $425 million in the prior quarter. Alumina third-party revenue decreased 3% to $637 million, while aluminum third-party revenue increased 31% to $3.3 billion. The company ended June with $1.4 billion of cash, generated $608 million of cash from operations and $422 million of free cash flow, and redeemed the remaining $209 million of 2028 notes. Full-year alumina production guidance was lowered to 9.5 to 9.6 million metric tons and shipment guidance to 11.5 to 11.6 million metric tons. For 3Q, alumina segment performance is expected to be net favorable by about $10 million, aluminum segment performance is expected to be flat, and operational tax expense is expected to be $80 million to $90 million.

Bill Oplinger framed the quarter as one of operational discipline, stronger execution, and strategic progress. He emphasized stable safety trends, record production at several sites, multiyear labor agreements, and improving value-add demand, while saying the company is focused on controlling what it can: safety, stability, cost discipline, and execution. He was notably upbeat on the South32 acquisition, arguing it is a high-quality, below-replacement-cost way to expand Alcoa’s upstream footprint and improve cash flow through the cycle.

Molly Beerman said the quarter benefited from stronger aluminum prices, shipments, and product mix, but alumina was pressured by higher production costs and operational instability at Pinjarra. She cited adjusted EBITDA of $901 million, cash from operations of $608 million, free cash flow of $422 million, and cash of $1.4 billion, plus adjusted net debt of $1.4 billion at the top end of the target range. She also highlighted that the company redeemed $209 million of 2028 notes, contributed $24 million to the gallium JV, and raised full-year other corporate expense guidance to about $180 million and depreciation to about $660 million, while lowering alumina volume guidance and flagging $15 million unfavorable carbon costs in 3Q and $5 million to $10 million of energy-related support in 3Q depending on category.

Analysts pressed on 3Q energy assumptions, asset monetization, value-add capacity, restart timing, the South32 deal, Pinjarra issues, aluminum price weakness, Canadian tariff volumes, Australia approvals, carbon and caustic costs, working capital, and San Ciprian’s ramp. Management said 3Q fuel oil is modeled at $90 per barrel and that diesel/fuel oil should swing to about $5 million favorable, while asset monetization remains targeted at $500 million to $1 billion through 2030 with Messina East largely negotiated. On Pinjarra, management said the shortfall was driven by an oxalate outbreak plus natural-gas-related curtailment from the cyclone, and on aluminum prices they said the recent retreat was sentiment-driven rather than a change in fundamentals, with China production expected around 45 million metric tons.