$AA · Alcoa Corp

Alcoa reported Q3 2026 results with revenue of $3.7 billion, net income of $483 million ($1.81/share), and adjusted EBITDA excluding special items of $789 million. Free cash flow was $472 million, and the company ended the quarter with a $4.4 billion cash balance. The AliGroup acquisition advanced with South32 shareholder approval received on October 15, 2026, and closing expected in H1 2027.

Extended-hours trading shows AA up 2.30% to $41.35 vs. the $40.42 regular close, suggesting the market is reacting positively to strong cash generation and AliGroup progress despite the sequential EBITDA decline.

Alcoa's $3.1 billion AliGroup acquisition cleared a major hurdle with South32 shareholder approval, while the company generated strong free cash flow despite declining aluminum prices.

Alcoa's results reflect the broader aluminum industry dynamic of strong operational output offset by declining realized aluminum prices. The AliGroup acquisition positions Alcoa to consolidate bauxite, alumina, and aluminum assets from South32, mirroring industry consolidation trends.

AliGroup acquisition carries execution risk including regulatory approvals, integration complexity, and $2.6 billion in new debt (6.625% notes due 2034 and 6.875% notes due 2036). Q4 2026 Aluminum segment faces ~$30 million in higher raw material costs and ~$30 million in unfavorable alumina costs.