Core Insights - Alcoa Corporation (AA) is facing rising costs and expenses, with a 5.9% increase in cost of sales and an 8.7% rise in selling, general and administrative (SG&A) expenses in 2025 [1][8] Cost Structure - Energy constitutes approximately 24% of both alumina refining and primary aluminum production costs in 2025, making fluctuations in electricity and natural gas prices a significant risk factor [2][8] - Raw material inputs are also contributing to cost pressures, with Alcoa consuming 2.2-4.0 metric tons of bauxite and 80-130 kilograms of caustic soda for each metric ton of alumina produced, and 1.91-1.94 metric tons of alumina and 13.26-16.82 megawatt-hours (MWh) of electricity for each metric ton of aluminum produced [3] Capital Expenditures - Alcoa's capital spending related to environmental compliance and asset optimization is increasing, with $140 million spent on environmental control projects in 2025 and an expected $170 million in 2026 [4][8] Operational Focus - Despite the cost pressures, Alcoa is concentrating on operational efficiency, renewable energy usage, and disciplined capital allocation to safeguard margins, although sustained volatility in energy and raw material prices may continue to challenge near-term profitability [5] Peer Comparison - Among major peers, Constellium SE (CSTM) experienced a 13.5% increase in cost of sales and a 6.1% rise in SG&A expenses in 2025, while Ryerson Holding Corporation (RYZ) saw a 0.7% increase in cost of sales and a 1% rise in SG&A expenses [6] Stock Performance and Valuation - Alcoa's shares have increased by 52.1% over the past three months, compared to the industry's growth of 56.1% [7] - The company is trading at a forward price-to-earnings ratio of 12.23X, slightly above the industry's average of 12.22X, and holds a Value Score of A [10] Earnings Estimates - The Zacks Consensus Estimate for Alcoa's 2026 earnings has risen by 21% over the past 60 days, with current estimates for the current quarter at $1.20 and for the current year at $5.19 [11][12]

(Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ (Address of principal executive offices) (Registrant's telephone number, including area code): 412-315-2900 Securities registered pursuant to Se ...

Key Takeaways Constellium posted 28% revenue growth in Q4, led by packaging and aerospace strength.CSTM generated $178M free cash flow in 2025 and cut leverage to 2.5x.Alcoa's 2026 EPS seen up 37.4%, but rising costs pressure margins.Alcoa Corporation (AA) and Constellium SE (CSTM) are two prominent players in the aluminum sector with global operations and diversified portfolios. With aluminum prices remaining high, driven by global economic uncertainties and trade tensions, comparing these two industry par ...

Core Viewpoint - Alcoa Corp is planning to sell 10 of its closed or curtailed sites to the data centre industry, with the first sale expected by the end of June [1] Group 1: Company Strategy - Alcoa's CEO, Bill Oplinger, stated that the company is focused on maximizing value and minimizing liabilities when selling assets [1] - The company is exploring the potential impact of AI on the valuations of its individual sites [1] Group 2: Market Context - Aluminium producers face competition for electricity supplies from data centres, which are energy-intensive [1] - High aluminium prices have not diminished demand in the U.S., but low alumina prices have resulted in 50% of global refineries being cash negative [1] - This situation is expected to lead to cutbacks in alumina production, although Alcoa does not plan to reduce its output [1]

PresentationThe leading. with us today is CEO, Bill Oplinger. We will do this as a fireside chat. But before we start, I'll turn it over to you, Bill.William OplingerPresident, CEO & Director Sure. Thanks, Katja. So hopefully, you know Alcoa. If you don't know Alcoa, we're, I believe, the leading aluminum company in the world, vertically integrated global company. We mine around 48 million metric tons of bauxite on three separate continents. We refined 10 million metric tons of alumina. And we smelt 2.5 mil ...

Alcoa Conference Call Summary Company Overview - **Company**: Alcoa (NYSE: AA) - **Industry**: Aluminum and alumina production - **Global Presence**: Operates on three continents, mining approximately 40 million metric tons of bauxite, refining 10 million metric tons of alumina, and smelting 2.5 million metric tons of aluminum annually [5][6] Key Financial Insights - **Balance Sheet**: Strong balance sheet entering 2026, with significant improvements over the past years and pensions under control [5] - **Net Debt**: At the top end of the target range, indicating financial stability [6] - **Aluminum Prices**: Currently strong, positively impacting financials [6] - **Alumina Prices**: Low, with ongoing efforts to reduce costs [6] Strategic Initiatives - **Asset Sales**: Targeting $500 million to $1 billion from select asset sales, with the first sale expected in the first half of 2026 [7] - **Operational Ramp-Up**: Spain operations are currently at 80% capacity, with plans for further execution of strategic initiatives [6][7] - **Permitting Progress**: Anticipating completion of Part IV approvals in Australia by the end of 2026, which is critical for future operations [8][11] Market Dynamics - **Aluminum Supply-Demand**: - North America shows strong demand, particularly in packaging and electrical sectors, while automotive demand is weak [14][16] - Europe mirrors North America with steady demand in packaging and construction but weaker automotive demand [17] - Chinese supply remains capped at 45 million metric tons, which is crucial for market stability [14] - New Indonesian capacity expected to come online, but curtailments in other regions may balance the market [15][19] - **Alumina Market**: - Currently experiencing a surplus, leading to falling prices [18] - Approximately 50% of global refineries are cash negative, indicating potential future curtailments [19] Pricing and Premiums - **Midwest Premium**: High levels currently, covering tariffs and reflecting strong North American demand [21] - **Rotterdam Premium**: Increased due to market dynamics, with estimates suggesting a $40 per ton increase driven by CBAM [22] Growth and Capital Allocation - **Organic Growth**: Focused on targeted investments in cast houses and recycling initiatives to meet customer needs [26] - **Inorganic Growth**: Will pursue opportunities that unlock synergies not achievable by shareholders alone [27] - **Shareholder Returns**: Discussions ongoing regarding the balance between dividends and share buybacks, with a focus on maintaining a healthy balance sheet [28][29] Operational Challenges - **Brazil Operations**: Experienced power outages affecting capacity, currently ramping back up to 80% [32][33] - **San Ciprián Smelter**: Targeting cash neutrality by 2027, facing challenges due to high energy costs in Europe [34][35] AI and Technology Integration - **AI Utilization**: Implementing AI in operations, with around 80 use cases identified for efficiency improvements [40][41] Conclusion - **Outlook for 2026**: Positive expectations for aluminum demand and a strong balance sheet provide flexibility for growth and shareholder returns [42]

Investor Presentation February 2026 OUR VALUES Act with Integrity Operate with Excellence Care for People Lead with Courage 1 v Cautionary Statement regarding Forward-Looking Statements This presentation contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "aims," "ambition," "anticipates," "believes," "co ...

Core Viewpoint - The U.S. Supreme Court's ruling to overturn Trump's emergency tariffs could lead to refunds of approximately $175 billion in tariffs, significantly impacting businesses and consumers, although the refund process is expected to be slow [1]. Group 1: Impact on Businesses - Thousands of businesses are now considering pursuing refunds due to the Supreme Court ruling, which affects not only those that sued but also a broader range of companies [1]. - Affected companies, including luxury brands like LVMH and Moncler, saw positive stock reactions following the ruling [1]. - The corporate sector, particularly in consumer goods, automotive, manufacturing, and apparel, has been heavily impacted by tariffs that increased costs and disrupted supply chains [1]. Group 2: Refund Process and Legal Actions - The refund process is anticipated to be lengthy, with many companies potentially waiting months to years to recoup tariffs [1]. - Over 1,800 tariff-related lawsuits have been filed since April, a significant increase from fewer than two dozen in 2024, indicating a growing trend of legal challenges against tariffs [1]. - Companies may face challenges in gathering detailed import data necessary for calculating tariffs paid under various regimes [1]. Group 3: Consumer Impact - The Federal Reserve Bank of New York reported that 90% of the costs from Trump's tariffs are borne by American consumers and companies, countering the argument that foreign entities bear the burden [1]. - The effective U.S. tariff rate was reported at 11.7% as of November, significantly higher than the average of 2.7% between 2022 and 2024 [1]. Group 4: Future Tariff Landscape - Despite the ruling, tariffs are expected to continue under different legal frameworks, particularly in sectors deemed crucial for national security [1]. - The automotive sector will still face significant tariffs not related to the overturned emergency powers, such as the 25% tariffs on vehicles from Mexico and Canada [1]. - Some companies are opting to sell their rights to collect refunds to outside investors, receiving a small upfront payment while forfeiting the remainder [1].

Core Viewpoint - The Australian government's decision to allow Alcoa to continue clearing land in Western Australia is linked to a critical minerals deal with the Trump administration, despite Alcoa's history of illegal land clearing for bauxite mining [1][5][11]. Group 1: Alcoa's Operations and Legal Issues - Alcoa has been unlawfully clearing land for bauxite mining in Western Australia for 15 years, despite warnings from the federal environment department [1][3]. - The environment minister announced a $55 million penalty for illegal clearing that occurred from 2019 to 2025, but conservationists criticized this as insufficient given the long history of violations [2][9]. - Alcoa's operations were deemed to require approval under Australia's environmental laws since 2011, yet the company continued its activities without such approvals [3][15]. Group 2: Government Actions and Exemptions - The environment minister granted Alcoa a national interest exemption to continue clearing for 18 months while considering an expansion proposal for its mining operations [3][19]. - The exemption was justified by the minister as a means to reinforce confidence in the critical minerals project involving the US and Japan, despite the ongoing legal issues [5][8][20]. - The Australian government has committed funding and equity to a gallium plant project in partnership with Alcoa and Sojitz Corporation, highlighting the strategic importance of the project [6][20]. Group 3: Regulatory Framework and Compliance - Recent amendments to the Environment Protection and Biodiversity Conservation (EPBC) Act impose stricter limits on exemptions for land clearing, indicating a shift towards more rigorous environmental protection [15][21]. - The environment department acknowledged that the limitations of the current regulatory framework have made enforcement of compliance complex and slow [21]. - Alcoa has stated that the national interest exemption will allow it to modernize its approvals under the EPBC Act and sustain thousands of jobs [22].

Core Insights - Alcoa Corporation (AA) is experiencing strong performance in its Alumina segment, with production increasing by 1% to 2.48 million metric tons in Q4 2025, and third-party shipments rising by 5% sequentially [1][9] Group 1: Alumina Segment Performance - The Alumina segment is benefiting from increased output at Australian refineries, contributing to the overall growth [1] - For 2026, Alcoa projects alumina production to be between 9.7 million and 9.9 million tonnes, with shipments expected to be in the range of 11.8 million to 12.0 million tonnes [4][9] Group 2: Strategic Acquisitions and Joint Ventures - Alcoa is focused on acquiring new assets to enhance organic growth, exemplified by the acquisition of Alumina Limited in August 2024, which strengthens its position as a leading bauxite and alumina producer [2] - A joint venture with IGNIS EQT, initiated in March 2025, is expected to enhance production capacity at the San Ciprian site, with a restart anticipated by mid-2026 [3] Group 3: Market Performance and Valuation - Alcoa's shares have surged by 68% over the past three months, outperforming the industry growth of 57.3% [7] - The company is currently trading at a forward price-to-earnings ratio of 11.61X, slightly above the industry average of 11.44X, and holds a Value Score of A [10] Group 4: Earnings Estimates - The Zacks Consensus Estimate for Alcoa's 2026 earnings has increased by 20.8% over the past 60 days, indicating positive market sentiment [12]