Alcoa (NYSE:AA) Announces Earnings Results, Misses Estimates By $0.13 EPS

Alcoa (NYSE:AA) released its quarterly earnings results on Thursday. The industrial products company reported $2.12 EPS for the quarter, missing analysts’ consensus estimates of $2.25 by ($0.13), FiscalAI reports. Alcoa had a net margin of 9.48% and a return on equity of 19.57%. The business had revenue of $3.97 billion for the quarter, compared to the consensus estimate of $3.99 billion. During the same period in the previous year, the company earned $0.39 EPS.

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

• Alcoa said it delivered record second-quarter revenue of $4 billion and adjusted EBITDA of $901 million, driven mainly by higher aluminum prices, stronger shipments, and improved mix. The aluminum segment posted its best-ever quarterly adjusted EBITDA of $1.1 billion.
• The company announced its largest-ever acquisition, buying South32’s upstream bauxite, alumina, and aluminum assets, and said it expects about $900 million of NPV synergies and immediate accretion to EPS and cash flow. Management emphasized the deal should strengthen Alcoa’s position across the aluminum value chain and expand capacity meaningfully.
• Operationally, Alcoa highlighted improved reliability, with production records at four smelters and one refinery and several restart ramp-ups helping lift primary aluminum output by 30,000 metric tons sequentially. It also secured multiple multi-year labor agreements through 2030, improving workforce stability.
• Alcoa lowered full-year alumina production and shipment guidance because of disruptions at the Pinjarra Refinery, including operational instability and a natural gas interruption tied to Cyclone Laurence. Management said Pinjarra has since stabilized, but it does not expect to fully recover the lost volume this year.
• The company maintained a constructive market view, saying aluminum fundamentals remain tight and value-add premiums are holding up despite a recent LME price pullback. Management also said U.S. and European demand for value-added products remains solid, while it sees current price weakness as largely sentiment-driven rather than a major change in fundamentals.

Alcoa Trading Down 6.4%

Shares of AA opened at $43.84 on Friday. The company’s fifty day simple moving average is $61.70 and its 200-day simple moving average is $62.46. Alcoa has a twelve month low of $28.11 and a twelve month high of $84.38. The company has a current ratio of 1.48, a quick ratio of 0.88 and a debt-to-equity ratio of 0.36. The company has a market cap of $11.57 billion, a P/E ratio of 9.02, a P/E/G ratio of 0.50 and a beta of 1.63.

Alcoa Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Tuesday, May 19th were given a dividend of $0.10 per share. The ex-dividend date was Tuesday, May 19th. This represents a $0.40 annualized dividend and a yield of 0.9%. Alcoa’s dividend payout ratio (DPR) is 10.13%.

Analysts Set New Price Targets

A number of research firms recently weighed in on AA. B. Riley Financial reduced their price objective on Alcoa from $92.00 to $80.00 and set a “buy” rating for the company in a research report on Tuesday, July 7th. BMO Capital Markets cut their target price on Alcoa from $60.00 to $55.00 and set a “market perform” rating on the stock in a research note on Friday. Wells Fargo & Company reduced their price target on Alcoa from $72.00 to $71.00 and set an “overweight” rating for the company in a report on Friday. Wall Street Zen cut shares of Alcoa from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Royal Bank Of Canada set a $70.00 price objective on shares of Alcoa in a research report on Wednesday, July 1st. Five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Alcoa has a consensus rating of “Hold” and a consensus target price of $62.73.

Key Alcoa News

Here are the key news stories impacting Alcoa this week:

• Positive Sentiment: Alcoa reported record quarterly revenue and highlighted strong operational performance, including progress on smelter restarts and improved aluminum EBITDA. Article Title
• Positive Sentiment: Management outlined about $900 million in net present value synergies tied to the South32 asset deal, supporting its longer-term growth strategy. Article Title
• Positive Sentiment: Unusually heavy call-option buying suggests some traders are positioning for a rebound after the post-earnings selloff. Article Title
• Neutral Sentiment: Several analysts trimmed price targets, but JPMorgan and Wells Fargo both kept ratings that were not outright bearish, signaling a wait-and-see stance rather than a major downgrade cycle.
• Negative Sentiment: Alcoa missed Q2 earnings estimates, reporting $2.12 per share versus the $2.25 consensus, which disappointed investors despite better year-over-year results. Article Title
• Negative Sentiment: The company lowered 2026 alumina production guidance by 200,000 to 300,000 metric tons due to Pinjarra refinery issues, raising concerns about near-term earnings pressure. Article Title

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the stock. Atlas Capital Advisors Inc. acquired a new position in Alcoa in the 4th quarter worth approximately $189,000. UMB Bank n.a. raised its stake in shares of Alcoa by 29.1% during the 4th quarter. UMB Bank n.a. now owns 3,023 shares of the industrial products company’s stock valued at $161,000 after buying an additional 682 shares during the last quarter. Virtus Advisers LLC acquired a new position in shares of Alcoa in the 4th quarter valued at about $207,000. C M Bidwell & Associates Ltd. acquired a new position in shares of Alcoa in the 4th quarter valued at about $120,000. Finally, CIBC Private Wealth Group LLC boosted its stake in shares of Alcoa by 18.7% in the third quarter. CIBC Private Wealth Group LLC now owns 5,543 shares of the industrial products company’s stock worth $182,000 after buying an additional 874 shares during the last quarter.

About Alcoa

Alcoa Corporation is a global industry leader in the production and management of aluminum, offering an integrated value chain that spans bauxite mining, alumina refining, primary aluminum smelting and the fabrication of value-added products. The company’s operations are organized into segments that include raw material extraction, chemical processing and the manufacture of metal mill products and engineered solutions.

Alcoa’s product portfolio serves diverse end markets such as aerospace, automotive, packaging, construction, electrical and industrial applications.