Alcoa posts net income, free cashflow gains in Q3
Alcoa Corporation has declared a quarterly cash dividend of $0.10 apiece for the third quarter of the year, which marked a period of strong cash generation and continued progress on the company's operational and strategic priorities.
The group reported net attributable income of $485-million in the quarter, compared with $407-million in the preceding quarter and $232-million in the same quarter last year.
Alcoa’s adjusted earnings a share amounted to $1.82 apiece, compared with $2.12 apiece in the prior quarter and an adjusted loss a share of $6 in the same quarter last year.
Notably, the company generated $643-million in cash from operations in the third quarter, with free cashflow having been $472-million.
Alcoa ended the reporting quarter with a cash balance of $4.4-billion, which includes $2.6-billion of financing having been obtained for its acquisition of South32’s bauxite, alumina and aluminium interests and assets. The transaction is expected to close in the first half of 2027.
Meanwhile, Alcoa managed to set year-to-date production records at five of its smelters and one refinery in the quarter under review, as well as completed the restart of its Alumar smelter in Brazil.
Alcoa’s alumina production increased by 11% year-on-year to 2.5-million tons in the quarter owing to improved stability at the Pinjarra refinery in Australia. The group’s aluminium production increased by 2% year-on-year to 649 000 t, mostly owing to capacity restarts having been completed in the second quarter already and the restart of the Alumar smelter.
The group remains on track to produce between 9.5-million and 9.6-million tons of alumina in the full year, and between 2.4-million and 2.6-million tons of aluminium.