Alcoa Beats on EPS, Warns 42-Day Aluminum Inventories Leave No Shock Buffer
AA sits 17% above its 52-week low of $35.12 on elevated volume (1.8× avg).
Summary
Alcoa posted Q3 adjusted EPS of $1.82, well ahead of the $1.47 consensus, but revenue of $3.704B missed the $3.785B estimate and adjusted EBITDA slipped to $789M from $901M last quarter on weaker aluminum prices. Management guided Q4 production and shipments higher across alumina and aluminum, though planned maintenance adds roughly $30M of aluminum-segment costs. On the call, CEO Bill Oplinger flagged global aluminum inventories at about 42 days of consumption, historically low and leaving the market exposed to any supply disruption, with North America and Europe especially tight. The company also agreed to sell part of its Massena East site for up to $315M, the first step toward a $500M-$1B asset-sale target by 2030, and still expects the $3.1B Ali Group deal to close in the first half of 2027. Shares were up 2.35% premarket at $41.37. Watch the South32 shareholder vote outcome and regulatory reviews on the $4.1B acquisition, plus Q4 alumina pricing as the market is expected to tighten through 2027.
At the time of this announcement, AA was trading at $41.19 on NYSE in the Manufacturing sector, with a market capitalization of approximately $10.7B. The 52-week trading range was $35.12 to $84.38. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.