Net income rose 108.2% to $483M on revenue up 23.7% against a year earlier 8-K. Against the prior quarter, company-defined adjusted EBITDA fell to $789M from $901M, and Q4 guides to higher aluminum costs 8-K.
Alcoa Corp · Q3 2026 · Reported 15 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 3,704.00 | 2,995.00 | +23.7 % |
Pre-tax income | 573.00 | 167.00 | +243.1 % |
Net income | 483.00 | 232.00 | +108.2 % |
Pre-tax margin | 15.5 % | 5.6 % | +9.9 pp |
Net margin | 13.0 % | 7.7 % | +5.3 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Profit more than doubled against a year earlier; the nine-month bridge points to higher aluminum pricing
Revenue rose 23.7% to $3.70B and pre-tax income rose to $573M from $167M a year earlier, a quarter that included the Kwinana closure restructuring charge 714. Pre-tax margin widened to 15.5% from 5.6%, and net margin to 13.0% from 7.7% 13. Diluted EPS was $1.81 against $0.88 8-K.
The filing's year-to-date bridge points to price. Nine-month sales rose $1,481M, led by higher realized aluminum prices ($4,512 per metric ton against $3,242 in the nine months of 2025) and higher shipments, partly offset by lower alumina prices ($337 against $442) 89.
Sequentially, reported income rose on mark-to-market gains while adjusted earnings fell
Against the prior quarter, revenue fell 7% to $3,704M from $3,966M, and net income attributable to Alcoa rose to $483M from $407M 7. The company attributes the rise to favorable mark-to-market changes on the Ma'aden shares and energy contracts, improved production costs and higher alumina prices, partly offset by lower aluminum prices and shipments 8-K. Other income was $32M in the quarter against an expense of $200M in the prior quarter 7.
The company-defined adjusted measures moved the other way. Adjusted net income was $485M against $562M in the prior quarter, and adjusted EBITDA excluding special items was $789M against $901M 8-K. A year earlier, adjusted net income was a loss of $6M while reported net income was $232M, so special items lifted the prior-year reported figure, and the reported year-on-year rise is smaller than on an adjusted basis 8-K.
Aluminum carries earnings while Alumina is near breakeven
Aluminum segment Adjusted EBITDA was $862M against $1,073M in the prior quarter 21. Management cites a lower realized price ($4,527 per metric ton against $4,752), higher raw material costs and lower shipments, partly offset by better production costs and lower Canadian tariffs 21. The average realized aluminum price fell with the LME, and the filing says aluminum prices came off recent highs on expected supply recovery in Indonesia and the Middle East 0.
Alumina Adjusted EBITDA was a loss of $1M against a loss of $96M in the prior quarter, helped by an 8% rise in average alumina prices and the recovery of stability at the Pinjarra refinery 017. For the nine months it was a loss of $137M against a profit of $870M a year earlier 17.
Cash generation was solid, and AliGroup financing is already in place
Cash from operations was $643M in the quarter and company-defined free cash flow was $472M, after $171M of capital expenditures 8-K. Nine-month cash from operations was $1,072M against $648M a year earlier 29. Days working capital rose 4 days sequentially to 50 on higher inventory, and matched the third quarter of 2025 8-K.
The $4.4B cash balance includes $2.6B raised in September through 6.625% notes due 2034 and 6.875% notes due 2036 8-K. The proceeds are intended, with cash on hand, for the roughly $3.1B cash portion of the AliGroup purchase 8-K. The company now expects full-year interest expense of about $185M, up from its prior projection 8-K.
What to watch next
Q4 outlook: Alumina Adjusted EBITDA is expected to be consistent sequentially, while Aluminum Adjusted EBITDA faces roughly $30M of unfavorable impact from raw material costs and planned maintenance 8-K. Q4 operational tax expense is guided to $65M to $75M 8-K.
AliGroup is expected to close in the first half of 2027. A ticking fee of 5% per annum on the $3,100M cash consideration runs from October 15, 2026, and up to $750M of contingent cash is tied to alumina and aluminum prices 1.
Aluminum price direction, since the average realized price fell sequentially and the filing cites expected supply additions in Indonesia and the Middle East 021.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.