third quarter 2026
Filed Oct 15, 2026Alcoa reported third-quarter 2026 net income attributable to Alcoa Corporation of $483 million, adjusted EBITDA excluding special items of $789 million, and free cash flow of $472 million.
Third-quarter profitability and free cash flow were strong, aluminum production increased for the sixth consecutive quarter, and the Company reaffirmed full-year production and shipment projections. Sequential revenue, adjusted earnings, adjusted EBITDA, and Aluminum segment revenue declined, while financing for the AliGroup acquisition increased debt.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, third quarter 2026GAAP | $3.70B | 7 percent sequential decrease | – |
| Cost of goods sold, third quarter 2026GAAP | $2.82B | – | – |
| Selling, general administrative, and other expenses, third quarter 2026GAAP | $97M | – | – |
| Research and development expenses, third quarter 2026GAAP | $8M | – | – |
| Provision for depreciation, depletion, and amortization, third quarter 2026GAAP | $176M | – | – |
| Restructuring and other charges, net, third quarter 2026GAAP | $18M | – | – |
| Interest expense, third quarter 2026GAAP | $42M | – | – |
| Other (income) expenses, net, third quarter 2026GAAP | −$32M | – | – |
| Total costs and expenses, third quarter 2026GAAP | $3.13B | – | – |
| Income before income taxes, third quarter 2026GAAP | $573M | – | – |
| Provision for (benefit from) income taxes, third quarter 2026GAAP | $91M | – | – |
| Net income, third quarter 2026GAAP | $482M | – | – |
| Net income attributable to Alcoa Corporation, third quarter 2026GAAP | $483M | – | – |
| Basic earnings per share, third quarter 2026GAAP | $1.83 | – | – |
| Diluted earnings per share, third quarter 2026GAAP | $1.81 | – | – |
| Adjusted net income attributable to Alcoa Corporation, third quarter 2026non-GAAP | $485M | – | – |
| Adjusted diluted earnings per share, third quarter 2026non-GAAP | $1.82 | – | – |
| Adjusted EBITDA, third quarter 2026non-GAAP | $777M | – | – |
| Adjusted EBITDA excluding special items, third quarter 2026non-GAAP | $789M | sequential decrease of $112 million | – |
| Cash provided from operations, third quarter 2026GAAP | $643M | – | – |
| Capital expenditures, third quarter 2026GAAP | $171M | – | – |
| Free cash flow, third quarter 2026non-GAAP | $472M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $4.41B | – | – |
| Total debt, September 30, 2026other | $4.82B | – | – |
| Net debt, September 30, 2026non-GAAP | $414M | – | – |
| Adjusted net debt, September 30, 2026non-GAAP | $969M | – | – |
| DWC working capital, third quarter 2026non-GAAP | $2.02B | – | – |
| Days working capital, third quarter 2026non-GAAP | 50 days | sequential increase of 4 days | – |
| Sales, nine months ended September 30, 2026GAAP | $10.86B | – | – |
| Net income attributable to Alcoa Corporation, nine months ended September 30, 2026GAAP | $1.31B | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $4.95 | – | – |
| Cash provided from operations, nine months ended September 30, 2026GAAP | $1.07B | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | $476M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AluminaHigher average realized alumina prices and shipments supported third-party revenue. Alumina production increased 11 percent sequentially to 2.5 million metric tons, primarily due to improved stability at the Pinjarra, Australia refinery. | Third-party alumina sales of $595 million and third-party bauxite sales of $85 million | third-party revenue increased 7 percent sequentially | – |
| AluminumLower shipments and average realized prices reduced revenue. Production increased 2 percent sequentially to 649,000 metric tons, primarily due to capacity restarts completed in the second quarter 2026 and completion of the Alumar smelter restart. | Third-party sales of $3,021 million | third-party revenue decreased 9 percent sequentially | – |
2026 and fourth quarter 2026 outlook
- Note2026 Alumina segment production projection reaffirmed at 9.5 to 9.6 million metric tons.
- Note2026 Alumina segment shipment projection reaffirmed at 11.5 to 11.6 million metric tons.
- Note2026 Aluminum segment production projection reaffirmed at 2.4 to 2.6 million metric tons.
- Note2026 Aluminum segment shipment projection reaffirmed at 2.6 to 2.8 million metric tons.
- NoteFor the fourth quarter 2026, higher production and shipments are expected in both segments.
- NoteFourth quarter 2026 Alumina Segment Adjusted EBITDA is expected to be consistent sequentially.
- NoteFourth quarter 2026 Aluminum Segment Adjusted EBITDA is expected to face unfavorable impacts of approximately $30 million sequentially from higher raw material costs and planned maintenance.
- NoteAlumina costs in the Aluminum segment are expected to be unfavorable by approximately $30 million sequentially.
- NoteOther income is expected to increase by approximately $20 million in the fourth quarter 2026.
- NoteInterest expense is expected to approximate $185 million for the year.
- NoteFourth quarter 2026 operational tax expense is expected to approximate $65 million to $75 million.
Capital returns
- Dividends paid on Alcoa common stock were $80 million for the nine months ended September 30, 2026.
- No common-stock repurchase amount was reported in the filing.
What drove it
- Improved refinery performance and increased smelting production supported operations.
- Alumina production increased 11 percent sequentially, primarily due to improved stability at the Pinjarra refinery.
- Aluminum production increased 2 percent sequentially, supported by completed capacity restarts and the Alumar smelter restart.
- Higher alumina prices and improved production costs in both segments supported results.
- Favorable mark-to-market changes on Ma’aden shares and energy contracts supported sequential net income.
- South32 shareholders approved the AliGroup acquisition on October 15, 2026, and Alcoa stated that closing remains on track for the first half of 2027.
Concerns
- Company revenue declined 7 percent sequentially as Aluminum segment third-party revenue declined 9 percent sequentially.
- Adjusted net income attributable to Alcoa Corporation declined to $485 million from $562 million sequentially, while adjusted EBITDA excluding special items declined to $789 million from $901 million.
- Aluminum total shipments decreased 5 percent sequentially following elevated second-quarter shipment volumes associated with first-quarter inventory repositioning.
- Higher raw material costs and planned maintenance are expected to create unfavorable impacts of approximately $30 million sequentially within fourth-quarter Aluminum Segment Adjusted EBITDA.
- The Notes issuance increased expected full-year interest expense to approximately $185 million.
- The AliGroup transaction remains subject to closing conditions and is expected to close in the first half of 2027.
What to watch
- Whether refining system stability supports the expected fourth-quarter increase in Alumina production and shipments.
- Whether the smelting portfolio delivers the expected incremental output and higher fourth-quarter Aluminum shipments.
- Fourth-quarter Aluminum margin effects from higher raw material costs, alumina costs, and planned maintenance.
- Alumina and aluminum market conditions, which may affect fourth-quarter operational tax expense.
- Progress toward satisfaction of regulatory approvals and other closing conditions for the AliGroup acquisition.
- The timing and proceeds of the Massena East transaction, including expected closing within the next six months and expected proceeds of approximately $50 million to $65 million at closing.
Balance sheet and cash flow
- Cash and cash equivalents were $4,408 million at September 30, 2026, compared with $1,597 million at December 31, 2025.
- Long-term debt, less amount due within one year, was $4,821 million at September 30, 2026, compared with $2,438 million at December 31, 2025.
- Cash provided from financing activities was $2.6 billion in the third quarter 2026, reflecting financing obtained for the AliGroup acquisition.
- On September 23, 2026, Alcoa completed offerings of $1.5 billion aggregate principal amount of 6.625 percent senior notes due 2034 and $1.1 billion aggregate principal amount of 6.875 percent senior notes due 2036.
- Cash used for investing activities was $183 million in the third quarter 2026, including capital expenditures of $171 million.
- Receivables from customers were $1.3 billion, inventories were $2.6 billion, and accounts payable, trade were $1.9 billion for third-quarter days working capital.
Analysis
Alcoa reported $3,704 million of third-quarter revenue, down 7 percent sequentially, while net income attributable to Alcoa Corporation increased to $483 million from $407 million in the prior quarter. The sequential earnings improvement reflected favorable mark-to-market changes on Ma’aden shares and energy contracts, improved production costs, and higher alumina prices, partly offset by lower aluminum prices and shipments. Adjusted net income attributable to Alcoa Corporation was $485 million, below $562 million in the second quarter, and adjusted EBITDA excluding special items declined by $112 million sequentially to $789 million.
The Alumina segment improved operationally. Production rose 11 percent sequentially to 2.5 million metric tons, primarily from improved stability at Pinjarra, while third-party revenue increased 7 percent sequentially on higher average realized alumina prices and shipments. The Aluminum segment increased production 2 percent sequentially to 649,000 metric tons, supported by completed restart activity and completion of the Alumar restart. However, total aluminum shipments fell 5 percent sequentially and third-party sales fell to $3,021 million from $3,330 million, reflecting lower shipments and average realized prices.
Cash generation was a key result. Cash provided from operations was $643 million and free cash flow was $472 million after $171 million of capital expenditures. The balance sheet ended the quarter with $4,408 million of cash and cash equivalents, including $2.6 billion of financing obtained for the AliGroup acquisition. Total debt was $4,822 million, compared with $2,448 million at December 31, 2025, while net debt was $414 million. Alcoa paid $80 million of common-stock dividends in the first nine months of 2026.
Alcoa reaffirmed full-year production and shipment projections for both the Alumina and Aluminum segments. For the fourth quarter, it expects higher production and shipments in both segments, with Alumina Segment Adjusted EBITDA consistent sequentially. The outlook also identifies approximately $30 million of sequentially unfavorable impacts in Aluminum Segment Adjusted EBITDA from higher raw material costs and planned maintenance, approximately $30 million of unfavorable alumina costs, and approximately $20 million of higher other income. Full-year interest expense is expected to approximate $185 million following the Notes issuance.
Strategically, South32 shareholders approved the AliGroup acquisition on October 15, 2026, and Alcoa stated that the transaction remains on track to close in the first half of 2027. The Company also entered agreements to sell portions of the Massena East site, with expected proceeds of approximately $50 million to $65 million at closing and potential additional payments tied to approved data-center capacity. Execution on AliGroup closing conditions, refinery stability, incremental smelting output, aluminum shipments, and the fourth-quarter cost headwinds are the central reported items to monitor.
Management, verbatim
During the third quarter, we advanced the AliGroup acquisition, delivered improved refinery performance, and increased production across our smelting portfolio.
William F. Oplinger, President and CEO
As we look ahead, we remain focused on strengthening safety performance, sustaining operational stability, and building on this momentum as we work toward closing the AliGroup acquisition in the first half of 2027.
William F. Oplinger, President and CEO
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported as line items.
- Operating income was not reported as a line item.
- A quarterly common-stock dividend amount was not reported.
- Common-stock repurchases were not reported.
- No previous earnings outlook was provided for comparison, so vs_prior_guidance is empty.
- Percentage year-over-year changes were not reported for the financial metrics listed above.
- Percentage sequential changes were not reported for most financial metrics listed above.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.