Aluminum prices rise, boost earnings. Alcoa Corporation (AA.US) reported Q4 revenue and earnings per share that exceeded market expectations, causing the stock to rise 5% in after-hours trading.

Alcoa Corporation (AA.US) released its fourth quarter financial report for 2025 after the market closed on Thursday, with both adjusted earnings per share and revenue significantly surpassing market expectations. The aluminum giant reported fourth quarter revenue of $3.4 billion, exceeding the market consensus of $3.28 billion, representing a 15% increase from the previous quarter but slightly lower than the $3.5 billion reported in the same period last year. Adjusted earnings per share for the quarter reached $1.26, well above the market estimate of $0.93 per share. Following the release of the financial report, the stock price rose by 5% in after-hours trading. As of press time, the stock was down 0.67% in after-hours trading. The company's performance was primarily driven by the increase in aluminum prices, effectively offsetting the additional tariff costs incurred from importing aluminum products from Canada to the United States. Additionally, Alcoa received a total of $57 million in carbon offset payments from its operations in Spain and Norway, contributing to its profit. William F. Oplinger, President and CEO of Alcoa, stated: "Looking back at 2025, we made progress on our key operational, strategic, and capital allocation goals, while achieving multiple production records." During this quarter, Alcoa's operating cash flow improved significantly to $537 million, up from $85 million in the third quarter. Free cash flow reached $294 million, compared to a negative $66 million in the previous quarter. Looking ahead to 2026, Alcoa expects aluminum production to surpass 2025 levels with total output estimated to be between 2.4 million and 2.6 million metric tons as smelters resume operations. However, the company cautioned that the first quarter will face a series of unfavorable sequential impacts: the alumina segment will incur approximately $30 million in impacts due to maintenance cycles and decreased shipments; while the aluminum segment will face around $70 million in impacts due to the lack of carbon offset payments and higher restart costs. The company also announced that it redeemed the remaining $141 million of its 5.5% senior notes due in 2027 by the end of 2025, leaving a cash balance of $1.6 billion.