Alcoa (NYSE:AA) Announces Quarterly Earnings Results, Beats Expectations By $0.31 EPS

Alcoa (NYSE:AA) announced its quarterly earnings data on Thursday. The industrial products company reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.51 by $0.31, FiscalAI reports. Alcoa had a net margin of 9.48% and a return on equity of 18.90%. The business had revenue of $3.70 billion for the quarter, compared to analysts’ expectations of $3.77 billion. During the same quarter in the prior year, the company earned $0.88 earnings per share. The business’s revenue was up 23.7% compared to the same quarter last year.

Here are the key takeaways from Alcoa’s conference call:

• Operational performance improved in the third quarter, with six year-to-date production records, higher aluminum output, the completed Alumar restart, and a recovery at the Pinjarra refinery. Adjusted EBITDA reached $789 million, while year-to-date free cash flow was approximately $600 million.
• Alcoa signed an agreement to sell part of the Massena East site for potential proceeds of up to $315 million, including $50 million–$65 million expected at closing. The transaction is the first step toward the company’s goal of generating $500 million–$1 billion from asset monetizations by 2030.
• The AliGroup acquisition remains on track for closing in the first half of 2027; South32 shareholders approved the deal, Alcoa completed $2.6 billion of debt financing, and regulatory approvals are progressing. Management expects pro forma leverage of approximately 1.5 times and plans to prioritize rapid deleveraging after closing.
• Management sees constructive aluminum and alumina market fundamentals, citing tightening alumina conditions outside China, historically low aluminum inventories, and solid order books. However, the company expects roughly 1.5 million metric tons of new Indonesian smelting capacity next year and remains exposed to softer construction demand in Europe.
• The Western Australia EPA approval process for the mine plan has been delayed into 2027, although Alcoa expects to manage the delay through revised mining plans and six additional months of current-area production. The company also disclosed a fatality at its Alumar smelter and said it is undertaking additional safety actions.

Alcoa Price Performance

Shares of AA opened at $40.30 on Friday. The company has a market capitalization of $10.63 billion, a P/E ratio of 8.29, a price-to-earnings-growth ratio of 0.49 and a beta of 1.74. The company has a quick ratio of 0.92, a current ratio of 1.53 and a debt-to-equity ratio of 0.30. The firm has a 50 day moving average of $47.10 and a 200 day moving average of $56.14. Alcoa has a twelve month low of $35.12 and a twelve month high of $84.38.

Alcoa Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Tuesday, October 27th will be issued a dividend of $0.10 per share. The ex-dividend date is Tuesday, October 27th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.0%. Alcoa’s dividend payout ratio is presently 8.23%.

Insider Buying and Selling

In other Alcoa news, EVP Renato Bacchi sold 700 shares of Alcoa stock in a transaction on Monday, August 31st. The stock was sold at an average price of $51.02, for a total value of $35,714.00. Following the completion of the sale, the executive vice president owned 74,930 shares of the company’s stock, valued at approximately $3,822,928.60. This trade represents a 0.93% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Tammi A. Jones sold 15,628 shares of Alcoa stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $50.60, for a total value of $790,776.80. Following the completion of the sale, the executive vice president directly owned 39,819 shares of the company’s stock, valued at approximately $2,014,841.40. The trade was a 28.19% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.43% of the stock is owned by insiders.

More Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Q3 earnings beat expectations. Alcoa reported adjusted EPS of $1.82, above the roughly $1.51–$1.54 analyst consensus. Revenue increased 23.7% year over year to $3.70 billion, while net income rose to $483 million from $232 million a year earlier. Alcoa Corporation Reports Third Quarter 2026 Results
• Positive Sentiment: Cash generation and operations improved. The results featured strong cash generation, increased production and progress on operational initiatives. A separate report highlighted free cash flow of approximately $472 million, supporting the view that higher aluminum prices and improved execution are strengthening near-term earnings. Alcoa Q3 2026 Earnings
• Positive Sentiment: Barclays initiated coverage with an Overweight rating and a $55 price target, implying substantial upside from the recent trading level. The firm’s bullish view adds support to the argument that Alcoa’s valuation is attractive after its recent pullback. Barclays initiates coverage of Alcoa
• Neutral Sentiment: Alcoa maintained its quarterly dividend at $0.10 per share, payable November 13 to shareholders of record October 27. The $0.40 annualized payout represents a yield of about 1%, providing modest shareholder support. Alcoa Corporation Declares Quarterly Cash Dividend
• Neutral Sentiment: South32 shareholders approved the proposed sale of aluminum and alumina assets to Alcoa. The transaction could expand Alcoa’s operating footprint and strategic scale, but investors will continue assessing financing, integration and execution risks associated with the approximately $8 billion deal.
• Negative Sentiment: Bank of America reiterated a Sell rating and cut its price target to $48. Analyst Lawson Winder cited margin pressure, rising costs and weak deal economics, creating a significant counterweight to the earnings beat and Barclays’ more optimistic outlook. Alcoa Sell Rating and Price Target Cut

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of Alcoa in a research report on Monday, September 14th. Royal Bank Of Canada set a $70.00 price objective on Alcoa in a research report on Wednesday, July 1st. Wells Fargo & Company reduced their price objective on Alcoa from $71.00 to $60.00 and set an “overweight” rating for the company in a research report on Friday, September 18th. Barclays initiated coverage on Alcoa in a research note on Wednesday. They set an “overweight” rating and a $55.00 price objective for the company. Finally, JPMorgan Chase & Co. dropped their target price on Alcoa from $52.00 to $50.00 and set a “neutral” rating on the stock in a report on Wednesday, October 7th. Eight equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $60.54.

Alcoa Company Profile

Alcoa Corporation (NYSE:AA) is a global producer of aluminum and an integrated participant in the aluminum industry. Its operations span the value chain from bauxite mining and alumina refining to aluminum smelting, casting and recycling.

The company supplies aluminum products used in transportation, building and construction, packaging, aerospace, automotive, electrical and other industrial applications. Its portfolio includes primary aluminum, alumina, aluminum billets and other cast products, as well as low-carbon and recycled aluminum offerings.

Alcoa traces its origins to the Pittsburgh Reduction Company, founded in 1888, and has helped develop the modern aluminum industry.