Key Highlights

  • Alcoa shares closed up 2.60% at $41.47 on Oct. 16, 2026.
  • Third-quarter adjusted earnings were $1.82 per share, and revenue was $3.7 billion.
  • Adjusted EBITDA reached $789 million.
  • Free cash flow was $472 million, and cash ended at $4.4 billion.
  • The Massena East sale carries up to $315 million in potential proceeds.

Earnings Beat and Cash Flow Lift Shares

Alcoa (NYSE:AA) closed up 2.60% at $41.47 on Oct. 16, 2026, after reporting third-quarter adjusted earnings of $1.82 per share, which topped analyst expectations. Revenue of $3.7 billion came in slightly light of estimates. The results arrived alongside news of a land sale tied to a data center.

Net income attributable to Alcoa was $483 million, or $1.81 per share, and adjusted net income was $485 million, down from $562 million in the second quarter as lower metal prices offset gains. Adjusted EBITDA was $789 million, helped by higher alumina prices and strong operations.

Alcoa, based in Pittsburgh, is a vertically integrated aluminum producer with operations spanning bauxite mining, alumina refining, aluminum smelting and casting, and hydroelectric power generation. It sells bauxite, alumina and primary aluminum to industrial customers in transportation, building and construction, packaging and wire markets.

Operations Improve While Cash Builds for a Major Acquisition

Management reported six year-to-date production records, aluminum output up about 15,000 metric tons from the prior quarter, completed smelter restarts and a recovery at the Pinjarra refinery. Alumina segment EBITDA rose $95 million, while aluminum segment EBITDA was $862 million. Management also noted a fatality at its Brazil smelter on Sept. 16.

Cash from operations was $643 million and free cash flow was $472 million. Cash ended at $4.4 billion, including $2.6 billion of bond proceeds, which together with cash on hand will fund the $3.1 billion cash consideration for the pending acquisition from South32. Year-to-date return on equity was 25.3%, and $80 million was returned to shareholders through dividends.

The acquisition is expected to close in the first half of 2027, with about a dozen regulatory approvals in progress and no red flags so far. Pro forma leverage is expected near 1.5 times.

Massena East Sale Starts a Larger Monetization Plan

Alcoa agreed to sell Massena East for up to $315 million, with $50 million to $65 million due at closing within six months. Management called it the first step toward a $500 million to $1 billion asset monetization target by 2030.

The stock carries a market capitalization of about $10.94 billion, a forward price-to-earnings ratio of 7.31, a trailing ratio of 7.07 and earnings per share of $4.76. Its 52-week range is $35.12 to $84.38, and shares remain down about 24% year to date.

Outlook: Fourth-Quarter Costs and a Tighter Alumina Market Come Into Focus

For the fourth quarter, management expects higher production and shipments in both segments and flat alumina performance excluding pricing. Aluminum faces about $30 million of higher costs, including $10 million from carbon. Alumina market conditions are expected to tighten further into 2027.

Offsetting concerns include delayed Western Australia mining approvals, now expected to extend into mid-2027, and forecasts of a 2027 aluminum surplus after prices dipped below $3,000 per ton.