Alcoa profit rises despite a quarterly revenue decline
Alcoa reported third-quarter net income of 483 million dollars, up from 407 million dollars in the preceding quarter, while revenue and adjusted earnings declined sequentially. Revenue nevertheless exceeded the Zacks consensus. Aluminium output surpassed the analysts’ estimate, but third-party aluminium sales fell short, as the producer also reported cash generation and financing for its planned South32 asset purchase.
Economics & Markets··Midday
Reported and adjusted profit move apart
US aluminium producer Alcoa earned 483 million dollars attributable to shareholders in the third quarter of 2026, compared with 407 million dollars in the preceding quarter. Revenue fell from 3.966 billion dollars to 3.704 billion dollars over the same period. Its revenue still exceeded the Zacks consensus of 3.61 billion dollars. Adjusted earnings per share of 1.82 dollars also surpassed that research firm’s 1.65 dollars estimate.[1], [2]
The company’s sequential comparison showed adjusted net income declining from 562 million dollars to 485 million dollars and adjusted earnings per share from 2.12 dollars to 1.82 dollars. Adjusted earnings before interest, tax, depreciation and amortisation fell from 901 million dollars to 789 million dollars. Reported net income included gains from market valuations of energy contracts and shares in Maaden, the mining company.[1]
Aluminium output exceeds the estimate
Aluminium production reached 649,000 tonnes, up 2 per cent from the preceding quarter, following completion of the Alumar restart in Brazil. That output exceeded the two-analyst average estimate of 629,010 tonnes reported by Zacks. Alumina production increased 11 per cent sequentially to 2.5 million tonnes, while aluminium shipments declined 5 per cent from the previous quarter.[1], [2]
Third-party aluminium sales totalled 3.02 billion dollars against the 3.16 billion dollars estimate, despite rising 48.1 per cent from a year earlier. Zacks separately put total aluminium shipments at 693,000 tonnes against 687,560 tonnes expected. Third-party alumina sales were 595 million dollars against 599.38 million dollars expected, down 29.3 per cent annually.[2]
Acquisition financing lifts cash holdings
Operations generated 643 million dollars in cash. Capital expenditure of 171 million dollars left free cash flow of 472 million dollars. The quarter-end cash balance of 4.4 billion dollars included 2.6 billion dollars raised to finance the purchase of South32’s aluminium value-chain assets. Alcoa issued 1.5 billion dollars of bonds maturing in 2034 and another 1.1 billion dollars maturing in 2036. The acquisition carries 3.1 billion dollars in cash consideration; South32 shareholders approved it, and completion is expected in the first half of next year.[1]
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