Alcoa Corporation (AA) shares got a nice bump Friday after the aluminum producer delivered fourth-quarter results that handily beat Wall Street's expectations. When your revenue comes in $140 million above consensus and earnings per share crush estimates by nearly 40%, the market tends to notice.

The Numbers Tell a Strong Story

Revenue of $3.45 billion jumped 15% from the prior quarter, topping the $3.31 billion consensus. Adjusted earnings per share of $1.26 blew past the expected $0.92, which is the kind of beat that gets investors excited.

The real standout was adjusted EBITDA, which came in at $546 million—up a hefty $276 million quarter-over-quarter. What drove that surge? A few things: higher aluminum prices doing the heavy lifting, CO₂ compensation payments flowing in from Spain and Norway, and the absence of those pesky asset retirement obligation charges that dinged Q3 results.

Both Segments Delivered Growth

The Alumina segment saw third-party revenue edge up 3% sequentially, thanks to higher bauxite offtake agreements and increased alumina shipments. Nothing spectacular, but solid progress.

The Aluminum segment, though, really brought the heat. Third-party revenue surged 21% quarter-over-quarter, driven by better pricing and higher shipment volumes. When aluminum prices cooperate, Alcoa tends to print money.

On the operational side, alumina production rose 1% sequentially to 2.48 million metric tons, mostly from stronger output at Australian refineries. Aluminum production climbed 4% to 604,000 metric tons, with progress on restarting the San Ciprián smelter in Spain helping push volumes higher.

The balance sheet looks healthy too. Alcoa closed the quarter with $1.6 billion in cash and generated $537 million in operating cash flow.

Looking Ahead to 2026

For fiscal 2026, Alcoa is planning to crank up production. The company expects alumina output of about 9.7 to 9.9 million metric tons, up from 2025 levels on productivity improvements. Aluminum production is projected at around 2.4 to 2.6 million metric tons, supported by smelter restarts coming online.

But the first quarter of 2026 won't be all smooth sailing. The Alumina segment faces a sequential headwind of roughly $30 million in adjusted EBITDA, pressured by seasonal maintenance, lower alumina shipments, and weaker pricing on bauxite agreements.

The Aluminum segment has it tougher, with projected first-quarter adjusted EBITDA down about $70 million sequentially. That decline reflects the absence of those carbon compensation benefits from Q4 2025, plus higher costs tied to getting San Ciprián fully up and running.

AA Price Action: Alcoa shares traded up 1.09% at $63.83 during Friday's premarket session. The stock is knocking on the door of its 52-week high of $66.95.