Alcoa Reports Q1 2026 Earnings Miss with Lower Revenue and EPS Year-over-Year

summarizeSummary

Alcoa reported Q1 2026 adjusted EPS of $1.40 and revenue of $3.2 billion, missing analyst expectations and showing significant year-over-year declines, despite sequential improvements in profitability.

check_boxKey Events

• Q1 2026 Financial Results

  Alcoa reported adjusted earnings per common share of $1.40 on revenue of $3.2 billion for the first quarter of 2026.

• Year-over-Year Decline

  Adjusted EPS of $1.40 is significantly lower than $2.15 in Q1 2025, and revenue of $3.2 billion is down from $3.37 billion in Q1 2025.

• Sequential Profitability Improvement

  Adjusted net income increased to $373 million ($1.40 per share) from $322 million ($1.21 per share) in Q4 2025, and Adjusted EBITDA rose to $595 million from $527 million sequentially.

• Negative Free Cash Flow and Increased Net Debt

  The company reported negative free cash flow of $298 million for the quarter and an increase in net debt to $1.2 billion from $851 million in the prior quarter.

auto_awesomeAnalysis

Alcoa's first-quarter 2026 results present a mixed picture, with adjusted EPS of $1.40 falling short of expectations and significantly lower than the $2.15 reported in the prior year's quarter. Revenue also declined both sequentially and year-over-year. While the company showed sequential improvements in net income and adjusted EBITDA, the year-over-year declines and the reported miss are key concerns for investors. Additionally, the company reported negative free cash flow and an increase in net debt, indicating pressure on liquidity. Positive developments include the completion of the San Ciprián smelter restart and the previously announced redemption of $219 million in senior notes, which strengthens the balance sheet.