10-Q · April 30, 2026
Alcoa Corporation's Q1 2026 results show a revenue of $3.193 billion, down 3.15% YoY and EPS of $1.40, missing estimates due to lower alumina pricing and higher production costs. Despite the revenue decline, aluminum…
Earnings analysis · 10-Q
AA earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Alcoa reported a mixed quarter: EPS of $1.82 beat the $1.52 consensus estimate and increased from $1.53 sequentially, while revenue of $3.704 billion missed the $3.730 billion estimate. Free cash flow improved to $472…
Read full summary
Alcoa reported a mixed quarter: EPS of $1.82 beat the $1.52 consensus estimate and increased from $1.53 sequentially, while revenue of $3.704 billion missed the $3.730 billion estimate. Free cash flow improved to $472 million from $422 million in the prior quarter and negative $66 million a year earlier. The principal new concern is the South32 transaction, including $2,600 million of new senior notes, approximately $3,100 million of cash consideration, and approximately 6% dilution; detailed margin, balance-sheet, segment, and cash-flow disclosures were not included in the supplied filing excerpt.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.82
What stood out
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EPS beat and improved sequentially
GAAP EPS was $1.82, exceeding the $1.52 consensus estimate by $0.30, or approximately 19.7%. EPS increased from $1.53 in the prior quarter.
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Revenue grew year over year
Revenue was $3.704 billion, $26 million below the $3.730 billion consensus estimate, but up from $3.0 billion in the prior-year quarter.
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Strong free cash flow generation
Free cash flow was $472 million, improving from negative $66 million in the prior-year quarter and exceeding the prior quarter's $422 million.
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Repurchase authorization preserved
The company reported no share repurchases during the quarter, while up to $500 million remained authorized under the repurchase program.
What to watch
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Transaction financing increases leverage
Alcoa issued $2,600 million of senior notes during the third quarter to help fund the transaction, increasing leverage, borrowing costs, and covenant risk.
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South32 transaction completion risk
The proposed South32 transaction includes approximately $3,100 million of cash consideration and remains subject to regulatory, governmental, listing, and other conditions; delay or failure to close could leave Alcoa with transaction costs without the expected benefits.
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Approximately 6% shareholder dilution
The transaction is expected to issue shares representing approximately 6% of Alcoa's outstanding shares after issuance, diluting existing holders and potentially pressuring the stock price if new shareholders sell.
Management's outlook
The supplied 10-Q text does not provide quantitative revenue or EPS guidance. Prior company commentary had reaffirmed 2026 production targets, but those targets are not included in the supplied filing excerpt.
Earlier filings 4
10-K · February 26, 2026
Alcoa’s 2025 Form 10-K emphasizes operational stabilization, portfolio reshaping and disciplined capital allocation after a year of asset transactions and restarts. Management highlights sale of its 25.1% Saudi JV,…
10-Q · May 1, 2025
Alcoa reported materially improved Q1 results driven by the Alumina business: revenue of $3,369,000,000 (Q1 2025) rose $770,000,000 versus Q1 2024 and gross margin expanded to 27.6% from 7.5% a year earlier. Net income…
10-K · February 20, 2025
Alcoa completed several strategic portfolio moves in 2024, including the August 1, 2024 acquisition of Alumina Limited (bringing AWAC wholly‑owned) and the full curtailment of the Kwinana refinery, while also agreeing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.