Alcoa Corp. (AA) reported mixed second-quarter results after Thursday's closing bell, with earnings per share of $2.12 missing the Street estimate of $2.25, while revenue of $3.97 billion beat the analyst consensus of $3.94 billion. Revenue rose 24% year over year, marking the highest quarterly revenue in the company's nearly 10-year history.

Adjusted EBITDA climbed $306 million sequentially to $901 million, supported by stronger aluminum prices, higher shipments, and an improved product mix. Primary aluminum production increased by 30,000 metric tons sequentially, and the company achieved year-to-date production records at four smelters and one refinery. Alcoa completed production restarts at San Ciprian, Alumar, Lista, and Portland, added about 25,000 metric tons of flexible casting capacity, and delivered 726,000 metric tons of aluminum shipments during the quarter.

Segment Performance

The Aluminum segment revenue rose 31% to $3.3 billion, driven by higher shipments, stronger average realized aluminum prices, and improved value-added product premiums. Shipments increased by 113,000 metric tons sequentially, helping the segment deliver record adjusted EBITDA of $1.1 billion and an EBITDA margin of 32.3%. The performance benefited from higher LME prices, regional premiums, increased volumes, a stronger product mix, and solid customer demand across North America and Europe.

The Alumina segment revenue declined 3% to $637 million, primarily due to lower bauxite offtake and supply agreement volumes, along with operational challenges at the Pinjarra refinery. Adjusted EBITDA decreased $56 million sequentially, impacted by higher production costs, lower cost absorption, and increased fuel oil and diesel expenses.

Outlook

During the company conference call, Alcoa lowered its 2026 alumina production outlook, now expecting production of 9.5–9.6 million metric tons and shipments of 11.5–11.6 million metric tons, primarily due to operational challenges at the Pinjarra refinery during the second quarter. For the third quarter, Alcoa expects alumina segment performance to improve by approximately $10 million, while the aluminum segment is projected to remain broadly stable sequentially. The company also noted that Section 232 tariff costs on U.S. imports of aluminum from Canada are expected to decrease by about $10 million.

AA Price Action: Alcoa shares were down 0.75% at $46.50 during premarket trading on Friday, according to market data.