Alcoa posts record $4 billion Q2 revenue as South32 deal strengthens upstream portfolio

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Alcoa Corporation reported record second-quarter 2026 revenue of USD 4 billion (24 per cent increase sequentially), supported by higher aluminium prices, improved operational performance and progress on key strategic projects. During the quarter, the company also signed an agreement to acquire South32’s interests in bauxite, alumina and aluminium assets, further strengthening its upstream portfolio.

Alcoa president and CEO William F. Oplinger said, “During the second quarter, in addition to delivering strong financial results that captured favourable aluminium prices, our team executed on strategic initiatives, most notably the announced agreement with South32.” 

Bauxite

Bauxite production declined to 8.3 million tonnes in the second quarter from 9.1 million tonnes in the previous quarter. Third-party bauxite shipments also fell to 1.5 million tonnes, while revenue from third-party bauxite sales declined due to lower shipment volumes and weaker prices under bauxite offtake and supply agreements.

Despite the lower quarterly performance, bauxite remained a key part of Alcoa's business. The proposed acquisition of South32's bauxite operations is expected to expand the company's resource base across Australia, Brazil and South Africa.

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Alumina

Alumina production decreased 6 per cent quarter-on-quarter to 2.2 million tonnes, mainly due to lower output at the Pinjarra refinery in Western Australia. The refinery continued to face operational instability that began in late March and was further affected by gas supply disruptions linked to Cyclone Narelle.

Third-party alumina shipments remained broadly unchanged at 1.6 million tonnes, as delayed Australian shipments from the first quarter were completed during the second quarter, partly offsetting lower production and reduced trading activity. Alumina segment revenue declined slightly because of lower bauxite-related sales, although favourable currency movements provided some support.

For 2026, Alcoa lowered its alumina production guidance to 9.5–9.6 million tonnes and reduced expected alumina shipments to 11.5–11.6 million tonnes, reflecting the continued impact of disruptions at the Pinjarra refinery.

Aluminium

Aluminium production increased 5 per cent from the previous quarter to 636,000 tonnes, supported by the completion of the San Ciprián smelter restart in Spain, continued progress at the Alumar smelter in Brazil, and completed capacity restarts at the Lista smelter in Norway and the Portland smelter in Australia.

Total aluminium shipments rose 18 per cent quarter-on-quarter, while third-party aluminium revenue increased 31 per cent on higher shipment volumes, increased sales of value-added products and stronger realised aluminium prices. The company said higher aluminium prices and shipments were the main contributors to the increase in adjusted EBITDA during the quarter.

Alcoa maintained its 2026 aluminium production guidance at 2.4-2.6 million tonnes and shipment guidance at 2.6-2.8 million tonnes.

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Beyond its core operations, Alcoa generated USD 4 billion in quarterly revenue, reported net income of USD 407 million, and increased adjusted EBITDA excluding special items to USD 901 million. The company also generated USD 608 million in operating cash flow and ended the quarter with a cash balance of USD 1.4 billion after redeeming its remaining 2028 senior notes. 

During the quarter, Alcoa approved a final investment decision for a gallium production plant in Australia, announced a USD 65 million investment at its Mosjøen smelter in Norway, and completed new collective bargaining agreements covering operations in Australia, the United States and Canada.