AA · Alcoa Corporation

Alcoa Corporation's first quarter 2026 results showed significant improvement in profitability, with net income rising to $425 million from $213 million in the prior quarter, primarily driven by higher aluminum prices and a $158 million favorable mark-to-market adjustment on its Saudi Arabian Mining Company (Ma’aden) shares. Adjusted EBITDA excluding special items increased to $595 million, reflecting the benefit of elevated pricing despite headwinds from lower alumina and aluminum shipments, which declined due to shipment delays from the Middle East conflict and Cyclone Narelle, as well as seasonal maintenance in Australian refineries. Management highlighted the team's effective handling of these disruptions, with CEO William F. Oplinger noting solid performance excluding shipment timing impacts expected to benefit Q2. Production in alumina fell 5% sequentially to 2.4 million metric tons, while aluminum output remained flat at 607,000 metric tons amid progress on the San Ciprián smelter restart. Revenue dipped 7% to $3.2 billion on reduced volumes, though aluminum segment pricing provided some offset. Cash usage was $179 million from operations, with a year-end cash position of $1.4 billion supporting disciplined capital allocation, including a notice to redeem $219 million of 6.125% Senior Notes due 2028. The safe completion of the San Ciprián restart in April positions the company for improved Q2 dynamics. Guidance for full-year 2026 production and shipments remains unchanged, with Q2 Adjusted EBITDA outlook pointing to $55 million favorable impact in aluminum from inventory repositioning and higher shipments, tempered by $15 million unfavorable in alumina from bauxite agreements and energy costs. Investors should note the furnished status of Item 2.02, limiting its use in certain regulatory contexts.