Alcoa beats on profit, misses on revenue in Q3
Revenue came in at $3.70bn against a $3.90bn forecast, even as earnings topped estimates
Published
Alcoa reported third-quarter earnings per share of $1.82, beating expectations by $0.30. Revenue was $3.70bn, short of the $3.90bn analysts had forecast.
The company reaffirmed its 2026 guidance for both main businesses. It still expects Alumina segment production of 9.5 to 9.6 million metric tons and shipments of 11.5 to 11.6 million metric tons. For Aluminum, it kept its forecast of 2.4 to 2.6 million metric tons of production and 2.6 to 2.8 million metric tons of shipments.
Alcoa said full-year 2026 interest expense will run to about $185m, higher than its earlier projection. The company tied the increase to its recent senior notes issuance. It also expects fourth-quarter operational tax expense of $65m to $75m, and said it expects to collect $50m to $65m at the closing of the Massena East site sale, with as much as $60m to $250m more in potential proceeds over the following seven years.
South32 shareholders approved Alcoa's acquisition of AliGroup on October 15, keeping the deal on track to close in the first half of 2027. Chief executive William F. Oplinger said the quarter reflected progress on the acquisition, improved refinery performance and higher smelting production, and that focus is now turning to operational stability ahead of the deal's close.
The revenue miss came alongside steady production and shipment targets, suggesting the business is tracking plan even as the top line softened. The bigger factor for investors may be financing: the $2.6bn senior notes sale from September is now showing up as roughly $185m in interest expense for 2026, a sign that the cash cost of the AliGroup deal is already working its way onto the balance sheet. With South32 investors clearing the transaction, attention shifts from deal risk to how smoothly Alcoa manages the integration.