TLDR
- The aluminum producer delivered Q2 adjusted earnings per share of $2.12 and EBITDA totaling $901M, falling short of analyst projections calling for $2.55 EPS and $943M EBITDA.
- The company reduced its 2026 alumina production forecast to a range of 9.5M–9.6M metric tons from the previous 9.7M–9.9M estimate, citing operational disruptions at its Western Australia Pinjarra facility.
- Quarterly revenue increased to $3.97B compared to $3.02B in the year-ago period, while net income rose significantly to $407M from $164M.
- The aluminum division’s EBITDA jumped dramatically to $1.07B from $97M year-over-year, driven by elevated metal prices and the resumption of idled smelter operations.
- Shares of AA traded approximately 2.4% lower in Friday’s pre-market session and have declined roughly 12% since the beginning of the year.
Alcoa (AA) shares slipped 2.4% in Friday’s pre-market trading session, hovering near $45.84, following the company’s second-quarter earnings report that missed analyst expectations and a downward revision to its annual alumina production forecast.
The aluminum giant posted adjusted second-quarter earnings of $2.12 per share with EBITDA reaching $901M on revenues totaling $3.97B. Wall Street consensus had anticipated earnings of $2.55 per share alongside EBITDA of $943M, based on FactSet data.
When examining GAAP figures, the quarterly performance showed considerable strength. Net income surged to $407M, translating to $1.53 per diluted share, versus $164M, or $0.62 per share, during the comparable 2025 period. Revenues advanced from $3.02B posted in last year’s second quarter.
Benchmark aluminum pricing stood around $2,600 per metric ton twelve months earlier. Current levels hover near $3,200 — a favorable trend that significantly benefited Alcoa’s aluminum operations.
Adjusted EBITDA within the aluminum division skyrocketed to $1.07B during Q2, compared to a mere $97M in the prior-year quarter. This represents a remarkable reversal, fueled by strengthening metal valuations and the reactivation of smelters that had been previously shut down.
Aluminum product shipments increased 18% from the preceding quarter. Alcoa explained this growth resulted from inventory that was repositioned across North American facilities during the first quarter combined with enhanced production capabilities.
Pinjarra Refinery Drags on Alumina
The alumina division presented a contrasting picture. This segment recorded a $96M operating loss, an improvement from the $139M loss sustained during Q2 2025 — though still unprofitable.
Second-quarter alumina shipment volumes remained unchanged sequentially. Shipping delays experienced in Australia were partly counterbalanced by decreased trading volumes and diminished output from the Pinjarra refinery located in Western Australia.
The Pinjarra operation has faced difficulties since March, when operational instability was compounded by natural gas supply interruptions linked to Cyclone Narelle. While the facility has subsequently achieved stable operations, the production volume shortfall cannot be fully recovered.
“While the refinery has since returned to stable operations and is performing well, we do not expect to fully recover the production and shipment volumes that were lost during the second quarter,” CFO Molly Beerman said on the earnings call.
Guidance Cut Adds to Pressure
Consequently, Alcoa lowered its fiscal 2026 alumina production guidance to a range of 9.5M–9.6M metric tons, representing a decrease from the previously projected 9.7M–9.9M ton range.
This forecast reduction eclipsed the positive momentum within the aluminum segment and played a significant role in the negative market response.
AA shares had already experienced downward momentum ahead of this earnings release. The stock declined 3.6% during Thursday’s session and has shed approximately 12% since the year began, despite the upward trajectory in aluminum commodity prices.
The company also contends with investor concerns following its June 30 disclosure of plans to acquire South32’s bauxite, alumina, and aluminum operations for $4.1B through a combination of cash and equity. Share prices have fallen 13% since that transaction announcement, reflecting market apprehension regarding increased leverage, shareholder dilution, and integration complexities.
AA had declined 12% year to date through Thursday’s market close.
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