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Alcoa posts higher net income, sets sights on AliGroup completion

Alcoa reported third quarter 2026 results, with higher net income and progress on the AliGroup acquisition.

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Laura Stewart
Author bio Laura Stewart is a Finance Editor at The Motley Fool, where she covers Australian and international equity markets. She joined the company in 2022, following a career transition from legal advisory work in Southeast Asia into the investment industry. Prior to her current editorial role, Laura spent three years as an Equity Analyst and Writer, producing investment research across the ASX, NYSE, and NASDAQ. Her coverage included small-cap growth companies, thematic investment ideas, and high-quality U.S.-listed businesses. Laura holds a Master of Applied Finance and brings additional expertise in accounting, taxation, and estate and wealth planning from her postgraduate studies. She also has a background in law and communications, which supports her analytical and reporting work in financial markets. Outside of work, she enjoys spending time in the Adelaide Hills with her flock of sheep. Education Laura holds a Bachelor of Laws, a Bachelor of Communication (Journalism), and a Bachelor of Commerce with majors in Accounting and Corporate Finance. In 2025, she completed a Master of Applied Finance at the University of Adelaide, receiving postgraduate awards in Accounting Concepts & Methods, Ethical Principles in Accounting & Finance, Real Estate Valuation & Investment, and Tax, Estate & Wealth Planning. Social media LinkedIn FYI – I am taking a break from social media at the moment, so this account isn’t active at the moment, but I will let you know when I rejoin. Favorite investment quote "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." — Albert Einstein
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The Alcoa Corporation Ltd (ASX: AAI) share price is under the spotlight following the company's third quarter 2026 results, which featured net income of $483 million and continued strong operational performance.

Two business men looking at financial data, charts, and graphs on a digital tablet and a laptop computer.

Image source: Getty Images

What did Alcoa report?

  • Revenue of $3.7 billion for Q3 2026, down 7% from Q2 2026
  • Net income attributable to Alcoa Corporation rose to $483 million (Q2 2026: $407 million)
  • Adjusted net income: $485 million; adjusted earnings per share: $1.82
  • Adjusted EBITDA (excluding special items): $789 million
  • Free cash flow of $472 million for the quarter
  • Cash balance of $4.4 billion, including $2.6 billion in financing for the AliGroup acquisition

What else do investors need to know?

Alcoa increased aluminium production for the sixth consecutive quarter, with five smelters and one refinery hitting year-to-date volume records. The company completed the restart of its Alumar smelter in Brazil, supporting higher output.

The major AliGroup acquisition from South32 advanced significantly, with funding secured and South32 shareholders approving the deal. The transaction is tracking for completion in the first half of 2027.

Alcoa also entered into agreements to sell portions of its Massena East site in New York, targeting up to $315 million in potential proceeds over the next seven years, conditional on project developments.

What's next for Alcoa?

Alcoa reaffirmed its 2026 alumina and aluminium production and shipment forecasts, expecting further gains in the fourth quarter as stability continues across its refineries and smelters. Management anticipates steady Alumina segment margins and some cost headwinds in the Aluminium segment due to higher raw material costs and scheduled maintenance.

The company aims to close the AliGroup acquisition in early 2027, integrate these assets, and continue efforts to optimise its operating portfolio. Higher interest income from acquisition cash reserves and an increased annual interest expense are on the radar for Q4 and beyond.

Alcoa share price snapshot

Over the past 12 months, Acola shares have risen 6%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 2% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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