Alcoa delivered a strong start to 2026, with net income reaching $425 million, an increase from the $213 million reported in the previous quarter.
This growth was fuelled by a combination of rising aluminium prices and a favourable mark-to-market gain on the company’s stake in the Saudi Arabian Mining Company (Ma'aden).
On an adjusted basis, net income stood at $373 million, while Adjusted EBITDA increased to $595 million.
This $68 million sequential increase was primarily the result of higher London Metal Exchange (LME) prices and Midwest premiums, which helped the company overcome lower shipping volumes across its segments.
The company’s two primary divisions saw diverging results this quarter.
The Alumina segment adjusted EBITDA decreased $52 million, primarily due to lower alumina prices and lower bauxite offtake margins.
Meanwhile, the Aluminum segment adjusted EBITDA increased $174 million, primarily due to higher metal prices and lower alumina costs.
These impacts were partially offset by the non-recurrence of CO2 compensation in Spain and Norway recognised in the fourth quarter and lower shipping volumes, including the impact of inventory repositioning, and higher costs associated with the San Ciprián smelter restart.
William Oplinger, President and CEO of Alcoa, said: “Operationally, we delivered. We maintained stable performance across the system and captured higher metal prices.
“Despite significant disruption in the Middle East, our teams ensured continuity of supply for our operations.
“Our flexible casthouse network continues to unlock value-add opportunities and the depth of our commercial, procurement, and logistics capabilities was evident this quarter.”
This operational stability is backed by a disciplined balance sheet; the company ended the quarter with $1.4 billion in cash and recently moved to redeem the remaining $219 million of its 2028 notes.
The broader market, however, remains defined by the ongoing Middle East conflict.
The closure of the Strait of Hormuz has led to a massive disruption where millions of tons of smelting and refining capacity remain offline.
This has resulted in aluminium prices exceeding $3,600 per metric ton.
Looking ahead to the second quarter of 2026, Alcoa expects a mixed but generally favourable outlook.
The Aluminium segment is projected to see a $55 million boost as the inventory held back in the first quarter reaches the market and production costs stabilise following the San Ciprián smelter restart.
However, the Alumina segment remains vulnerable to the geopolitical climate, with an expected $15 million decline due to higher energy costs and volume constraints.
Despite these challenges, Alcoa remains focused on increasing profitability through higher shipments, continued operational performance, and realising the benefit of strong market conditions in the aluminium segment.
