Alcoa Corporation (NYSE:AA) stock rose Friday after the company reported its fourth-quarter results, with both revenue and earnings exceeding the consensus.
Details
Revenue of $3.45 billion, up 15% sequentially (Q/Q), exceeded the consensus of $3.31 billion, and adjusted EPS of $1.26 exceeded the consensus of $0.92.
Adjusted EBITDA, excluding special items, totaled $546 million, up $276 million Q/Q, aided by higher aluminum prices, recognition of CO₂ compensation in Spain and Norway, and the absence of asset retirement obligation charges recorded in the third quarter of fiscal 2025.
Business Performance
In the Alumina segment, third-party revenue rose 3% Q/Q, led by higher bauxite offtake and supply agreements as well as increased alumina shipments.
Meanwhile, the Aluminum segment’s third-party revenue climbed 21% Q/Q, reflecting average realized pricing and increased shipment volumes.
As of the end of the quarter, the company had a cash balance of $1.6 billion. Cash provided from operations was $537 million.
Alumina production rose 1% sequentially (Q/Q) to 2.48 million metric tons, mainly reflecting higher production at Australian refineries.
Meanwhile, Aluminum production increased 4% Q/Q to 604,000 metric tons, driven by progress in restarting the San Ciprián smelter in Spain.
Outlook
For fiscal 2026, Alcoa projects alumina production of about 9.7–9.9 million metric tons, up from 2025 on productivity gains, and aluminum production of around 2.4–2.6 million metric tons, supported by smelter restarts.
For first-quarter 2026, the company projects the Alumina segment’s adjusted EBITDA to face a sequential headwind of about $30 million, driven by seasonal maintenance, lower alumina shipments, and weaker pricing and volumes from bauxite offtake and supply agreements.
Moreover, Alcoa projects the Aluminum segment’s first-quarter 2026 adjusted EBITDA to decline Q/Q by about $70 million, reflecting the absence of carbon compensation benefits in Spain and Norway recorded in the fourth quarter of 2025, as well as higher costs associated with the restart of the San Ciprián smelter.
AA Price Action: Alcoa shares were up 1.09% at $63.83 during premarket trading on Friday. The stock is approaching its 52-week high of $66.95, according to Benzinga Pro data.
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