Alcoa (NYSE:AA – Get Free Report) issued its earnings results on Thursday. The industrial products company reported $2.12 earnings per share for the quarter, missing analysts’ consensus estimates of $2.25 by ($0.13), FiscalAI reports. Alcoa had a return on equity of 12.57% and a net margin of 8.27%.The business had revenue of $3.97 billion for the quarter, compared to the consensus estimate of $3.99 billion. During the same quarter in the previous year, the business posted $0.39 earnings per share.
Here are the key takeaways from Alcoa’s conference call:
- Alcoa said it delivered record second-quarter revenue of $4 billion and adjusted EBITDA of $901 million, driven mainly by higher aluminum prices, stronger shipments, and improved mix. The aluminum segment posted its best-ever quarterly adjusted EBITDA of $1.1 billion.
- The company announced its largest-ever acquisition, buying South32’s upstream bauxite, alumina, and aluminum assets, and said it expects about $900 million of NPV synergies and immediate accretion to EPS and cash flow. Management emphasized the deal should strengthen Alcoa’s position across the aluminum value chain and expand capacity meaningfully.
- Operationally, Alcoa highlighted improved reliability, with production records at four smelters and one refinery and several restart ramp-ups helping lift primary aluminum output by 30,000 metric tons sequentially. It also secured multiple multi-year labor agreements through 2030, improving workforce stability.
- Alcoa lowered full-year alumina production and shipment guidance because of disruptions at the Pinjarra Refinery, including operational instability and a natural gas interruption tied to Cyclone Laurence. Management said Pinjarra has since stabilized, but it does not expect to fully recover the lost volume this year.
- The company maintained a constructive market view, saying aluminum fundamentals remain tight and value-add premiums are holding up despite a recent LME price pullback. Management also said U.S. and European demand for value-added products remains solid, while it sees current price weakness as largely sentiment-driven rather than a major change in fundamentals.
Alcoa Stock Down 3.4%
Shares of AA stock opened at $46.93 on Friday. The stock’s 50 day simple moving average is $62.09 and its 200 day simple moving average is $62.59. Alcoa has a twelve month low of $28.11 and a twelve month high of $84.38. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.88 and a current ratio of 1.48. The company has a market capitalization of $12.38 billion, a price-to-earnings ratio of 11.88, a PEG ratio of 0.52 and a beta of 1.63.
Alcoa Dividend Announcement
Wall Street Analyst Weigh In
A number of equities analysts recently weighed in on the company. BMO Capital Markets increased their price target on Alcoa from $65.00 to $75.00 and gave the company a “market perform” rating in a research report on Thursday, April 9th. Wells Fargo & Company boosted their price target on shares of Alcoa from $71.00 to $72.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Morgan Stanley restated an “equal weight” rating and issued a $53.00 price target (down from $79.00) on shares of Alcoa in a research report on Wednesday, July 8th. Argus set a $73.00 price objective on shares of Alcoa in a research report on Monday, April 27th. Finally, Wall Street Zen lowered Alcoa from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $64.91.
Check Out Our Latest Stock Report on Alcoa
Hedge Funds Weigh In On Alcoa
Several hedge funds and other institutional investors have recently added to or reduced their stakes in AA. Dimensional Fund Advisors LP grew its position in Alcoa by 4.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 11,580,803 shares of the industrial products company’s stock worth $615,428,000 after purchasing an additional 462,243 shares during the last quarter. State Street Corp grew its position in Alcoa by 6.7% in the third quarter. State Street Corp now owns 11,458,529 shares of the industrial products company’s stock valued at $376,871,000 after acquiring an additional 721,063 shares during the period. L1 Capital Pty Ltd raised its stake in Alcoa by 22.3% during the third quarter. L1 Capital Pty Ltd now owns 5,887,699 shares of the industrial products company’s stock worth $193,646,000 after acquiring an additional 1,073,357 shares in the last quarter. AQR Capital Management LLC raised its stake in Alcoa by 153.4% during the fourth quarter. AQR Capital Management LLC now owns 4,134,425 shares of the industrial products company’s stock worth $219,703,000 after acquiring an additional 2,503,132 shares in the last quarter. Finally, Maple Rock Capital Partners Inc. bought a new position in shares of Alcoa during the fourth quarter valued at $173,412,000.
Key Stories Impacting Alcoa
Here are the key news stories impacting Alcoa this week:
- Positive Sentiment: Alcoa reported record quarterly revenue and cited strong operational performance, helped by higher aluminum pricing, better shipments, and progress on smelter restarts.
- Positive Sentiment: The company highlighted about $900 million in net present value from synergies tied to the AliGroup transaction, which could support longer-term value creation.
- Positive Sentiment: Alcoa also announced progress on strategic expansion, including the acquisition of South32 assets and approval of a new gallium project in Australia with U.S., Japan, and Australia backing.
- Neutral Sentiment: Management lowered 2026 alumina production guidance to 9.5 million to 9.6 million tons, implying a reduction of roughly 200,000 to 300,000 tons versus prior expectations.
- Negative Sentiment: Quarterly adjusted EPS of $2.12 missed Wall Street estimates of $2.25, while revenue of $3.97 billion also came in just below expectations.
- Negative Sentiment: The weaker alumina outlook and earnings miss likely weighed on sentiment more than the strong revenue print, explaining why the stock is down despite operational improvements.
Alcoa Company Profile
Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company’s operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.
Alcoa’s product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.
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