Alcoa Corporation (ticker: AA) is a vertically integrated aluminum company engaged in the production and sale of bauxite, alumina, and aluminum products. The company operates across the entire aluminum value chain, from mining raw materials to refining and smelting processes. Alcoa also generates energy to support its operations and sells its products globally, with a focus on cost competitiveness and operational integration.
- Aluminum Segment - Produces and sells aluminum products through smelting and casting processes, serving various industries worldwide.
- Alumina Segment - Refines bauxite into alumina, which is used in aluminum production or sold to third-party customers.
- Bauxite Mining - Mines bauxite, the primary raw material for alumina and aluminum production, supplying both internal operations and external customers.
- Energy Generation - Generates energy to support its aluminum and alumina production processes.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
William F. Oplinger ExecutiveBoard | President and Chief Executive Officer | None | Joined Alcoa in 2000; held various leadership roles, including CFO and COO; became CEO in September 2023. | View Report → |
Molly S. Beerman Executive | Executive Vice President and CFO | None | Joined Alcoa in 2016; previously served as Controller; became CFO in February 2023. | |
Nicol A. Gagstetter Executive | Executive Vice President and Chief External Affairs Officer | None | Joined Alcoa in October 2023; previously held leadership roles at Glencore and Rio Tinto. | |
Renato Bacchi Executive | Executive Vice President and CCO | None | Joined Alcoa's predecessor in 1997; held various roles, including Chief Strategy Officer; became CCO in August 2023. | |
Carol L. Roberts Board | Director | Trustee at University of Memphis; Board Member at Divergent 3D and V.F. Corporation | Director since 2016; former CFO of International Paper; audit committee financial expert. | |
Ernesto Zedillo Board | Director | Professor at Yale University; Advisory Board Member at Iberdrola and NTT Data | Director since 2016; former President of Mexico; provides expertise in global economics and governance. | |
James A. Hughes Board | Director | Managing Partner at EnCap Investments; Director at TPI Composites and PNM Resources | Director since 2016; expertise in energy sector and financial management; audit committee financial expert. | |
Mary Anne Citrino Board | Director | Director at HP Inc., Trilliant Food and Nutrition, ZO Skin Health, and Spanx, Inc. | Director since 2016; over 30 years of investment banking experience; audit committee financial expert. | |
Pasquale Fiore Board | Director | Chair of STAS Inc.; Board Member at Fe3dback | Director since 2020; over 35 years in metals and mining; audit committee financial expert. | |
Roberto O. Marques Board | Director | Chairman at Beautycounter; Board Member at Compana Pet Brands, We Mean Business Coalition, and USTA Foundation | Director since 2023; extensive global leadership experience in consumer goods and sustainability. | |
Steven W. Williams Board | Non-Executive Chairman of the Board | Director at Enbridge Inc.; Chairman at Smiths Group plc | Director since 2016; became Non-Executive Chairman in January 2021; extensive experience in energy and engineering. | |
Thomas J. Gorman Board | Director | Director at Orora Limited, Sims Limited, and Worley Limited; Chairman of The Nature Conservancy (Maine Chapter) | Director since 2021; extensive experience in logistics and manufacturing; provides insights into Australian operations. |
- Given the current tightness and high prices in the bauxite market, can you elaborate on how this might impact your alumina operations and what measures you're taking to secure sufficient bauxite supply, especially with new refineries ramping up in India and China?
- With the ongoing tariffs on aluminum and the potential for increased tariffs on Canadian imports, how do you anticipate this will affect your strategy for your U.S. and Canadian operations, and what are the possible implications for the Midwest premium and trade flows?
- Can you provide clarity on your net debt target, considering that your adjusted net debt is currently higher than it has been in the past three years at $2.1 billion, and discuss how the Ma'aden equity position factors into your capital allocation decisions and potential increases in capital returns?
- The profitability improvement program has delivered substantial benefits, but with various moving parts and other headwinds, can you elaborate on how we should think about the sustainability of these improvements and their impact on future EBITDA, especially in a lower commodity price environment?
- Regarding the potential monetization of legacy assets and excess energy capacity, can you provide more detail on the timeline and expected value realization from these assets, and how demand from hyperscalers and data center developers may influence these plans?
Research analysts who have asked questions during Alcoa earnings calls.
Carlos de Alba
Morgan Stanley
5 questions for AA
Katja Jancic
BMO Capital Markets
5 questions for AA
Timna Tanners
Wolfe Research
4 questions for AA
Christopher LaFemina
Jefferies
3 questions for AA
Daniel Major
UBS
3 questions for AA
John Tumazos
John Tumazos Very Independent Research
3 questions for AA
Michael Dudas
Vertical Research Partners
3 questions for AA
Bennett Moore
JPMorgan Chase & Co.
2 questions for AA
Lawson Winder
Bank of America
2 questions for AA
Lucas Pipes
B. Riley Securities
2 questions for AA
Nick Giles
B. Riley Securities
2 questions for AA
William Peterson
JPMorgan Chase & Co.
2 questions for AA
Alexander Hacking
Citigroup
1 question for AA
Alex Hacking
Citigroup
1 question for AA
Bill Peterson
JPMorgan Chase & Co.
1 question for AA
Chris LaFemina
Jefferies Financial Group
1 question for AA
Glyn Lawcock
Barrenjoey
1 question for AA
Henry Hearle
B. Riley Securities
1 question for AA
Lachlan Shaw
UBS Group AG
1 question for AA
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The alumina market is global and highly competitive, with many active suppliers, producers, and commodity traders. The majority of our product is sold in the form of smelter grade alumina. Our main competitors in the third-party alumina market are Aluminum Corporation of China, South32, Hangzhou Jinjiang Group, Rio Tinto, and Norsk Hydro ASA. | |
South32 | The alumina market is global and highly competitive, with many active suppliers, producers, and commodity traders. The majority of our product is sold in the form of smelter grade alumina. Our main competitors in the third-party alumina market are Aluminum Corporation of China, South32, Hangzhou Jinjiang Group, Rio Tinto, and Norsk Hydro ASA. |
Hangzhou Jinjiang Group | The alumina market is global and highly competitive, with many active suppliers, producers, and commodity traders. The majority of our product is sold in the form of smelter grade alumina. Our main competitors in the third-party alumina market are Aluminum Corporation of China, South32, Hangzhou Jinjiang Group, Rio Tinto, and Norsk Hydro ASA. |
The alumina market is global and highly competitive, with many active suppliers, producers, and commodity traders. The majority of our product is sold in the form of smelter grade alumina. Our main competitors in the third-party alumina market are Aluminum Corporation of China, South32, Hangzhou Jinjiang Group, Rio Tinto, and Norsk Hydro ASA. | |
Norsk Hydro ASA | The alumina market is global and highly competitive, with many active suppliers, producers, and commodity traders. The majority of our product is sold in the form of smelter grade alumina. Our main competitors in the third-party alumina market are Aluminum Corporation of China, South32, Hangzhou Jinjiang Group, Rio Tinto, and Norsk Hydro ASA. |
We compete with commodity traders, such as Glencore, Trafigura, J. Aron and Gerald Group, and aluminum producers, such as Emirates Global Aluminum, Norsk Hydro ASA, Rio Tinto, Century Aluminum and Vedanta Aluminum Ltd. | |
Trafigura | We compete with commodity traders, such as Glencore, Trafigura, J. Aron and Gerald Group, and aluminum producers, such as Emirates Global Aluminum, Norsk Hydro ASA, Rio Tinto, Century Aluminum and Vedanta Aluminum Ltd. |
J. Aron | We compete with commodity traders, such as Glencore, Trafigura, J. Aron and Gerald Group, and aluminum producers, such as Emirates Global Aluminum, Norsk Hydro ASA, Rio Tinto, Century Aluminum and Vedanta Aluminum Ltd. |
Gerald Group | We compete with commodity traders, such as Glencore, Trafigura, J. Aron and Gerald Group, and aluminum producers, such as Emirates Global Aluminum, Norsk Hydro ASA, Rio Tinto, Century Aluminum and Vedanta Aluminum Ltd. |
Emirates Global Aluminum | We compete with commodity traders, such as Glencore, Trafigura, J. Aron and Gerald Group, and aluminum producers, such as Emirates Global Aluminum, Norsk Hydro ASA, Rio Tinto, Century Aluminum and Vedanta Aluminum Ltd. |
We compete with commodity traders, such as Glencore, Trafigura, J. Aron and Gerald Group, and aluminum producers, such as Emirates Global Aluminum, Norsk Hydro ASA, Rio Tinto, Century Aluminum and Vedanta Aluminum Ltd. | |
Vedanta Aluminum Ltd. | We compete with commodity traders, such as Glencore, Trafigura, J. Aron and Gerald Group, and aluminum producers, such as Emirates Global Aluminum, Norsk Hydro ASA, Rio Tinto, Century Aluminum and Vedanta Aluminum Ltd. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Alcoa's Aluminum Smelters | Internal supply of smelter-grade alumina | Alumina | Accounted for 32% of total alumina shipments in 2023. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Alumina Limited | 2024 | Alcoa acquired 100% of Alumina Limited’s ordinary shares through a share swap deal valued at approximately $2.8 billion, assuming additional obligations of around $385M in debt and incurring about $35M in transaction costs. This acquisition, which secured full control over Alumina’s 40% stake in the AWAC joint venture, strategically enhances Alcoa’s vertical integration across bauxite mining, alumina refining, and aluminum smelting while simplifying governance, having received all necessary regulatory and shareholder approvals. |
Recent press releases and 8-K filings for AA.
- Alcoa updated its third-quarter guidance, anticipating 15,000 metric tons lower aluminum shipments, an additional $25 million expense from retained inventory profit, and a $10 million increase in tax expense to a range of $60 to $70 million. Lower bauxite shipments are also expected to impact revenue by approximately $70 million.
- The company is actively engaged in discussions with the U.S. and Canadian governments regarding Section 232 tariffs, with over $800 million currently being paid in tariffs.
- The restart of the San Ciprián smelter is progressing, but full capacity is now expected by mid-2026, with profitability anticipated later in 2026, a delay from original projections.
- Alcoa expects the EPA's recommendation for new mine approvals in Western Australia by the end of Q2 2026, which could lead to an additional 1 million metric tons of aluminum production and cost reductions of $15 to $20 per metric ton by 2029.
- The company is focused on strengthening its balance sheet, targeting net debt between $1 billion and $1.5 billion (currently $1.7 billion), and has $500 million remaining on its share buyback authorization.
- Alcoa expects its aluminum market to be in a surplus for the second half of 2025 and into 2026, with new capacity coming online from Indonesia and China. Despite this, the company's annual guidance remains unchanged, though it anticipates 15,000 metric tons lower aluminum shipments in Q3 2025 due to timing.
- The company projects an additional $25 million expense in Q3 2025 related to higher profit retained in inventory and a $10 million increase in its Q3 2025 tax expense, now expected to be between $60 to $70 million. Lower bauxite shipments are also expected to result in a sequential revenue impact of approximately $70 million.
- The full capacity restart of the San Ciprián smelter is now delayed until mid-2026 due to a power outage. In Australia, mine approvals for new regions are progressing, with an EPA recommendation expected by the end of Q2 2026, which, once approved, is projected to increase aluminum production by 1 million metric tons and reduce costs by $15 to $20 per metric ton by 2029.
- Alcoa is focused on strengthening its balance sheet, aiming for a net debt target of $1 billion to $1.5 billion, down from $1.7 billion at the close of Q2 2025. The company has $500 million remaining on its share buyback authorization and is exploring monetization of former operating sites and Ma'aden shares.
- Alcoa updated its Q3 2025 outlook, projecting 15,000 metric tons lower aluminum shipments and an increased tax expense range of $60 million-$70 million, though its annual guidance remains unchanged.
- The company anticipates an alumina market surplus in late 2025 and 2026, while the aluminum market is currently balanced with strong long-term demand trends.
- The restart of the San Ciprián smelter is progressing, but full capacity and profitability are now expected by mid-2026, delayed from October 2025.
- Approval for new Australian mine regions is expected by end of Q2 2026, with full transition by 2029 projected to add 1 million metric tons of aluminum production and reduce costs by $15-$20 per metric ton.
- Alcoa aims to strengthen its balance sheet, targeting net debt of $1 billion-$1.5 billion, and plans to monetize Ma'aden shares and former operating sites, with $500 million remaining on its share buyback authorization.
- The US Trump administration's 50% tariff on aluminum imports has significantly disrupted the supply chain, particularly impacting Canadian suppliers like Rio Tinto.
- Rio Tinto has responded by reducing Canadian exports and sourcing aluminum from US stockpiles to mitigate the impact of tariffs, though this is a temporary measure as domestic production cannot fully meet demand.
- These tariffs are leading to a tightening of US aluminum supply and higher prices, posing challenges for manufacturers and the broader industrial supply chain.
- Despite these market adjustments, financial analysts maintain an "Outperform" rating for Rio Tinto with an average price target of $71.43, suggesting a 13.63% potential upside from the current price.
- Alcoa Corporation and IGNIS EQT announced the resumption of the San Ciprián smelter restart process in Spain.
- The restart was previously paused due to a widespread power outage across Spain on April 28, which affected both the San Ciprián refinery and smelter.
- The joint venture decided to resume the restart after reviewing the Spanish Government's report on the outage and receiving assurances on improved grid resilience and reliable energy.
- The restart is estimated to be completed by mid-2026.
- Based on recent pricing, the company expects the smelter to record a net loss of approximately $90 million to $110 million (or $0.35 to $0.42 per common share) and use approximately $110 million to $130 million in cash from operations in 2025, an unfavorable change from prior estimates due to restart delays.
- In Q2, Alcoa limited incremental tariff costs from a potential $30 m to $10 m, trimmed the aluminum segment’s alumina price-incentive benefit to $140 m (from $165 m), expects a near-zero tax provision, and foresees $15 m of additional interest expense due to VAT assessments.
- Under the new 50% U.S. tariff on Canadian aluminum (effective June 4), Alcoa’s U.S. smelters (290 ktpa) benefit from higher Midwest premiums, but its 960 ktpa Canadian production—70% of which supplies U.S. customers—is losing out on premium parity and incurring net tariff costs.
- As of Q1, Alcoa’s adjusted net debt stood at $2.1 bn versus a target of $1.0–1.5 bn; the company has fully funded its U.S. pension, maintains a three-year lockup on the Ma’aden JV sale proceeds, and plans further deleveraging before considering shareholder returns or M&A.
- Restart of the Spain (San Ciprián) smelter remains paused following a major power outage; the refinery is back online, and long-term smelter profitability hinges on confirmed grid reliability and power agreements to resume full operations.
- In Australia, Alcoa is advancing approvals for a new mine region (public comment through August, approval targeted in early 2026) to phase in by 2027 and reach full new-region capacity in 2029, adding 1 mtpa of aluminum and $15–20/ton alumina cost savings.
- Q1 2025 performance: Robust results with adjusted EBITDA rising to $855M and EPS increasing to $2.07 vs 4Q24
- Strategic Initiatives: Enhanced safety, modernization, $1B debt repositioning in Australia, and formation of a San Ciprián joint venture, supported by a strong balance sheet
- Tariff Impact: CFO highlighted an annual tariff impact of about $400M with ongoing engagements with U.S. and Canadian administrations, amid challenges like the Midwest premium
- Market Adjustments: Addressed negative sentiment affecting aluminum premiums and supply flow recalibrations, including Canadian metal movements to stabilize net pricing
- Asset Developments: Provided updates on projects such as the Australian bauxite permitting process (public comment in early 2026, production ramp-up in 2027) and challenges with Spanish operations after a power outage
- Alcoa Corp announced that the Administrative Review Tribunal ruled no additional tax is owed on its disputed tax liabilities related to historic alumina sales, with a $67M refund expected by June 2025 and cash taxes of approximately $216M due by June 2026.
- The filing provides investor contact details for Yolande Doctor at 412-992-5450 and [email protected] for further inquiries.
- Financial Performance: Net income rose to $548M with EPS more than doubling to $2.07/share, despite revenue declining ~3% to approx $3.4B in Q1 2025.
- Adjusted EBITDA increased by $178M to $855M driven by higher aluminum prices and cost adjustments.
- Strategic Debt Repositioning: Completed a $1B debt issuance in Australia and tendered $890M of notes, ending the quarter with $1.2B in cash.
- Formed a joint venture with IGNIS Equity Holdings for San Ciprián operations to drive future growth.
- Maintained operational excellence with robust production and zero fatal or serious injuries.
- Delivered strong shareholder returns with $26M returned and a 39.1% return on equity through focused capital allocation.
- Achieved adjusted net income of $568M and demonstrated positive operating cash flow for sequential performance.
- Alcoa and IGNIS EQT have entered a joint venture to support the San Ciprián complex, with Alcoa holding 75% and IGNIS EQT 25% effective March 31, 2025.
- The partners contributed $81 million and $27 million, respectively, with potential additional funding of up to $108 million provided by Alcoa for operational needs.
- The agreement supports the planned restart of the San Ciprián smelter in 2025, with expected pre-tax net losses of $80–$100 million and cash operations using approximately $90–$110 million.