Alcoa's $4bn Q2’26: Portland smelter restart lifts aluminium output and earnings

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Alcoa Corporation has reported its strongest quarterly revenue to date, backed by the successful restart of capacity at its Portland aluminium smelter in Victoria, Australia, higher aluminium prices and increased shipments. The second quarter (Q2) also marked a milestone with Alcoa’s acquisition of South32's bauxite, alumina and aluminium assets, consisting of the Worsley Alumina operation in Western Australia.

Commenting on the quarter, Alcoa President and Chief Executive Officer William Oplinger stated, "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."

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Production, shipments and prices strengthen quarterly performance

Group aluminium Q2 2026 production increased 5 per cent quarter-on-quarter (Q-o-Q) to 636,000 tonnes, while four smelters and one refinery achieved year-to-date (YTD) production records. Revenue climbed 24 per cent from the March quarter to a record USD 4 billion.

The improved production was in line with stronger market conditions. Alcoa realised an average aluminium selling price of USD 4,752 per tonne, up 13 per cent from the previous quarter. Aluminium shipments also rose 18 per cent to 726,000 tonnes, reflecting the contribution from the restored Portland aluminium smelter capacity and favourable market demand.

Strategic developments continue beyond the quarter

Post the June quarter, around 1,400 employees at Alcoa's Western Australian mining and refining operations approved a new four-year enterprise agreement with the Australian Workers Union. 

The company also reached a final investment decision, alongside the Australian, US and Japanese governments, to develop a gallium production facility at its Wagerup refinery in Western Australia. Once operational, the plant is expected to supply approximately 10 per cent of global gallium demand, strengthening critical minerals supply chains.

Operationally, Alcoa generated USD 608 million in cash from operations during Q2 and expects aluminium production to reach 2.5-2.6 million tonnes in 2026.

Highlighting the company's operational focus, Oplinger added, "We continue to demonstrate operational excellence and positive momentum in our disciplined approach to maximise value creation." 

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