Alcoa (AA) stock price is $41.63, up 0.45% on the day, as of Oct 19, 2026. It has a market cap of $10.98Bn and a P/E ratio of 8.60, and is classified in the Aluminum industry (Basic Materials sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap10.98 Bn
P/E8.60
P/S0.81
Div. Yield0.01
Total Debt (Qtr)2.23 Bn
Revenue Growth (1y) (Qtr)31.41
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About
Alcoa Corporation is active in all aspects of the upstream aluminum industry with bauxite mining, alumina refining, and aluminum smelting and casting. The company operates 25 locations across eight countries on five continents. It integrates mining refining and smelting to supply alumina and aluminum products globally. In 2025 the company produced 37,500,000 dry metric tons of bauxite and 11,700,000 metric tons of alumina. Its smelter output reached 2,600,000 metric tons of…
Alcoa Corporation is active in all aspects of the upstream aluminum industry with bauxite mining, alumina refining, and aluminum smelting and casting. The company operates 25 locations across eight countries on five continents. It integrates mining refining and smelting to supply alumina and aluminum products globally. In 2025 the company produced 37,500,000 dry metric tons of bauxite and 11,700,000 metric tons of alumina. Its smelter output reached 2,600,000 metric tons of aluminum.
Revenue comes mainly from the sale of smelter grade alumina, non metallurgical alumina and primary aluminum products. Alumina sales are priced using market indices such as the Alumina Price Index while aluminum sales follow the London Metal Exchange price plus regional and product premiums. The company also earns income from its energy assets which generate electricity for internal use and for sale to third parties. Energy sales contribute to total revenue and help lower the cost of power for smelting operations.
The company operates through the following reportable segments: Alumina and Aluminum.
Alumina: This segment includes bauxite mines and alumina refineries that mine bauxite and refine it into smelter grade and non metallurgical alumina. It sells alumina to the company’s own smelters and to third party customers under contracts tied to the Alumina Price Index or fixed price spot terms. The segment reports bauxite production of 37,500,000 dry metric tons and alumina output of 11,700,000 metric tons annually.
Aluminum: This segment comprises the company’s smelting and casting operations and its energy assets in Brazil Canada and the United States. It produces primary aluminum ingots and value added products such as foundry billet rod and slab which are sold to external customers and traders. Pricing is based on the London Metal Exchange price plus regional premiums and negotiated product premiums. The segment reports aluminum production of 2,600,000 metric tons and its energy assets generated approximately 8,092,726 megawatt hours in 2025.
Alcoa is the largest alumina producer outside of China and ranks among the world’s biggest bauxite miners. Its competitive advantages stem from an integrated supply chain long term energy arrangements and a low carbon footprint in its smelting portfolio. The company faces competition from firms such as Rio Tinto South32 Glencore and other alumina and aluminum producers in global markets. Sustainability initiatives including low carbon aluminum products further strengthen its position versus rivals.
The company’s alumina customers include its own aluminum smelters and third parties such as traders and industrial users. Its aluminum products are sold to external customers and traders serving sectors like transportation building and construction packaging wire and other industrial applications. Specific customer names are not disclosed in the filing. Alumina is also sold to chemical manufacturers who use non metallurgical grades for industrial processes.
Sectors:Basic Materials·UtilitiesSector rationaleAlcoa's primary business is the extraction and processing of raw materials, specifically bauxite mining, alumina refining, and aluminum smelting, which are explicitly listed under Basic Materials. The company also operates energy assets that generate electricity for sale to third parties, justifying a secondary sector in Utilities.Industries:AluminumAluminumPrimaryAlcoa is an integrated aluminum producer that operates bauxite mines, alumina refineries, and aluminum smelters. Its primary revenue comes from the sale of primary aluminum products, such as ingots, billet, rod, and slab, priced based on the London Metal Exchange.Independent Power ProducersIndependent Power ProducersSecondaryThe company owns energy assets that generate electricity not only for internal smelting use but also for sale to third parties, contributing to its total revenue.Classified using BQ-MICSCIK: 0001675149
Bull & bear
Investment Thesis
▲ Bull case
Alcoa ended the first quarter with a cash balance of one billion four hundred million dollars which provides a solid liquidity buffer. Less than one% of its electricity consumption is exposed to spot prices due to long term power contracts and financial hedges. This structural insulation allows the company to maintain margins even when energy costs rise elsewhere. The combination of high cash and low energy risk supports a resilient financial profile. Investors may be underestimating the downside protection this provides in a volatile commodity cycle.
The company reported that inventory repositioning in the first quarter will generate about thirty million dollars of benefit in the second quarter as deferred sales are recognized. At the same time higher shipments and product premiums are expected to add another thirty five million dollars to Aluminum segment adjusted EBITDA. Value added product volumes are rising as customers in North America and Europe seek domestic supply amid Middle East disruptions. This shift supports higher pricing and improves product mix away from lower margin primary ingot. The market may not be fully crediting the near term earnings lift from these operational actions.
In Western Australia the company has completed public comment responses and continues to work with regulators targeting ministerial approval by year end 2026. Approval would unlock long term bauxite supply and support the alumina cost position. Parallel efforts to monetize former smelter sites including Massena East are advancing with a potential developer already in public review. While terms are not disclosed the transaction could contribute to the five hundred million to one billion dollar range the company has outlined for idled asset sales. These developments represent hidden catalysts that are not yet reflected in consensus estimates.
Alcoa is advancing a gallium project in Western Australia with cooperation from Japanese Australian and US governments. Successful commercialization could add a high margin specialty product to the portfolio. The company also announced a sixty five million dollar investment to expand foundry production at the Mosjøen smelter in Norway to include recycled content. This upgrade will increase capacity by up to seventy five thousand metric tons and meet rising demand for low carbon aluminum in automotive and packaging sectors. Both initiatives provide structural growth avenues that are currently underappreciated by the market.
Alcoa issued notice to redeem the remaining two hundred nineteen million dollars of its 2028 notes which will be paid at par value in May. This action reduces interest expense and moves the company toward its target net debt range of one billion to one point five billion dollars. A stronger balance sheet lowers the weighted average cost of capital and increases firm value. The firm continues to return capital via a regular quarterly dividend of zero point one zero dollars per share. The disciplined capital allocation framework remains unchanged suggesting further deleveraging and potential share repurchases as cash flow improves.
Alcoa ended the first quarter with a cash balance of one billion four hundred million dollars which provides a solid liquidity buffer. Less than one% of its electricity consumption is exposed to spot prices due to long term power contracts and financial hedges. This structural insulation allows the company to maintain margins even when energy costs rise elsewhere. The combination of high cash and low energy risk supports a resilient financial profile. Investors may be underestimating the downside protection this provides in a volatile commodity cycle.
The company reported that inventory repositioning in the first quarter will generate about thirty million dollars of benefit in the second quarter as deferred sales are recognized. At the same time higher shipments and product premiums are expected to add another thirty five million dollars to Aluminum segment adjusted EBITDA. Value added product volumes are rising as customers in North America and Europe seek domestic supply amid Middle East disruptions. This shift supports higher pricing and improves product mix away from lower margin primary ingot. The market may not be fully crediting the near term earnings lift from these operational actions.
In Western Australia the company has completed public comment responses and continues to work with regulators targeting ministerial approval by year end 2026. Approval would unlock long term bauxite supply and support the alumina cost position. Parallel efforts to monetize former smelter sites including Massena East are advancing with a potential developer already in public review. While terms are not disclosed the transaction could contribute to the five hundred million to one billion dollar range the company has outlined for idled asset sales. These developments represent hidden catalysts that are not yet reflected in consensus estimates.
Alcoa is advancing a gallium project in Western Australia with cooperation from Japanese Australian and US governments. Successful commercialization could add a high margin specialty product to the portfolio. The company also announced a sixty five million dollar investment to expand foundry production at the Mosjøen smelter in Norway to include recycled content. This upgrade will increase capacity by up to seventy five thousand metric tons and meet rising demand for low carbon aluminum in automotive and packaging sectors. Both initiatives provide structural growth avenues that are currently underappreciated by the market.
Alcoa issued notice to redeem the remaining two hundred nineteen million dollars of its 2028 notes which will be paid at par value in May. This action reduces interest expense and moves the company toward its target net debt range of one billion to one point five billion dollars. A stronger balance sheet lowers the weighted average cost of capital and increases firm value. The firm continues to return capital via a regular quarterly dividend of zero point one zero dollars per share. The disciplined capital allocation framework remains unchanged suggesting further deleveraging and potential share repurchases as cash flow improves.
The Alumina segment reported negative adjusted EBITDA of forty million dollars in the first quarter reflecting weak API prices and lower bauxite offtake volumes. Higher diesel costs driven by Middle East disruptions are pressuring mining operations in Western Australia. The company expects the alumina segment to be unfavorable by approximately fifteen million dollars in the second quarter due to lower price and volumes from bauxite offtake agreements and higher energy prices. These headwinds are structural as the Strait of Hormuz disruption affects global alumina supply chains. Market optimism may be underestimating the persistence of these cost pressures.
While electricity exposure is minimal the company still faces diesel price risk for mining and logistics. Freight costs are also rising due to higher oil prices and disruptions in global shipping routes. A portion of these costs will flow through to the product price with a lag affecting future profitability. Carbon product costs are increasing as green petroleum coke prices rise and availability tightens. These factors could erode margins if aluminum prices do not continue to climb.
Based on recent higher LME and Midwest premium pricing Section 232 tariff costs on US imports of aluminum from Canada are expected to increase by approximately thirty five million dollars sequentially. This additional cost could squeeze importing margins especially if domestic premiums do not rise proportionally. The outcome of upcoming USMCA negotiations remains uncertain and could lead to further trade adjustments. Any change that raises the cost of importing metal would negatively impact the Aluminum segment profitability. Investors may be assuming that tariff impacts will be modest or temporary.
The first quarter generated negative free cash flow of two hundred ninety eight million dollars primarily due to seasonal working capital build. Increases in receivables inventory and lower payables absorbed much of the EBITDA generated. While management expects the working capital to unwind later in the year the timing creates short term cash flow volatility. Capital expenditures remain at one hundred nineteen million dollars per quarter limiting cash conversion. The market may be overestimating the steadiness of free cash flow generation given these patterns.
Alcoa’s total debt stood at two billion five hundred fifty one million dollars at the end of the first quarter. Even after the planned redemption of the 2028 notes net debt remains elevated at approximately one billion seven hundred ninety two million dollars. The company’s target net debt range of one billion to one point five billion dollars still implies a notable leverage level. Higher leverage increases sensitivity to interest rate changes and could constrain financial flexibility. The market might be assuming a faster deleveraging trajectory than what the current debt profile suggests.
The Alumina segment reported negative adjusted EBITDA of forty million dollars in the first quarter reflecting weak API prices and lower bauxite offtake volumes. Higher diesel costs driven by Middle East disruptions are pressuring mining operations in Western Australia. The company expects the alumina segment to be unfavorable by approximately fifteen million dollars in the second quarter due to lower price and volumes from bauxite offtake agreements and higher energy prices. These headwinds are structural as the Strait of Hormuz disruption affects global alumina supply chains. Market optimism may be underestimating the persistence of these cost pressures.
While electricity exposure is minimal the company still faces diesel price risk for mining and logistics. Freight costs are also rising due to higher oil prices and disruptions in global shipping routes. A portion of these costs will flow through to the product price with a lag affecting future profitability. Carbon product costs are increasing as green petroleum coke prices rise and availability tightens. These factors could erode margins if aluminum prices do not continue to climb.
Based on recent higher LME and Midwest premium pricing Section 232 tariff costs on US imports of aluminum from Canada are expected to increase by approximately thirty five million dollars sequentially. This additional cost could squeeze importing margins especially if domestic premiums do not rise proportionally. The outcome of upcoming USMCA negotiations remains uncertain and could lead to further trade adjustments. Any change that raises the cost of importing metal would negatively impact the Aluminum segment profitability. Investors may be assuming that tariff impacts will be modest or temporary.
The first quarter generated negative free cash flow of two hundred ninety eight million dollars primarily due to seasonal working capital build. Increases in receivables inventory and lower payables absorbed much of the EBITDA generated. While management expects the working capital to unwind later in the year the timing creates short term cash flow volatility. Capital expenditures remain at one hundred nineteen million dollars per quarter limiting cash conversion. The market may be overestimating the steadiness of free cash flow generation given these patterns.
Alcoa’s total debt stood at two billion five hundred fifty one million dollars at the end of the first quarter. Even after the planned redemption of the 2028 notes net debt remains elevated at approximately one billion seven hundred ninety two million dollars. The company’s target net debt range of one billion to one point five billion dollars still implies a notable leverage level. Higher leverage increases sensitivity to interest rate changes and could constrain financial flexibility. The market might be assuming a faster deleveraging trajectory than what the current debt profile suggests.