Core Insights - Alcoa Corporation is focused on completing the acquisition of Alumina Limited by the target date of August 1, indicating a strategic move to enhance its operational capabilities [1] - The company has achieved a $350 million run-rate in its profitability improvement program, with $295 million remaining to be achieved over the second half of the year and into 2025 [1][2] - Investors are keen on the potential through-cycle earnings driven by operational improvements, with a focus on the upcoming decision regarding the lossmaking San Ciprian complex [3] Financial Performance - The third-quarter adjusted EBITDA estimate has been revised down from $437 million to $427 million [2] - The profitability program has yielded $350 million in improvements, with $250 million attributed to raw materials savings and $30 million each from productivity initiatives and the Warrick optimization [2] - Approximately 55% of Alcoa's cost-saving initiatives, targeting a $645 million run-rate by 2025, have already been achieved, indicating effective execution of the strategy [2] Market Reaction - Alcoa shares have experienced a decline of 1.98%, trading at $36.08 [3]

Financial Data and Key Metrics Changes - Revenue increased sequentially to $2.9 billion, driven by higher alumina and aluminum prices [9] - Net income attributable to Alcoa was $20 million, a significant improvement from a loss of $252 million in the prior quarter, with earnings per share rising to $0.11 [9] - Adjusted EBITDA increased by $193 million to $325 million, primarily due to higher average realized prices for alumina and aluminum [10] - Free cash flow was positive at $101 million, improving sequentially by $370 million [13] Business Line Data and Key Metrics Changes - In the Alumina segment, third-party revenue increased by 5% due to higher average realized prices, despite lower shipments [9] - In the Aluminum segment, third-party revenue rose by 16% on higher average realized prices and increased shipments [9] - Adjusted EBITDA for the Alumina segment increased by $47 million, while the Aluminum segment saw an increase of $183 million [10] Market Data and Key Metrics Changes - Alumina prices surged in the second quarter due to supply-side disruptions and strong demand from smelters, with a global alumina deficit of approximately 3 million metric tons anticipated for the full year [17][41] - Aluminum prices also increased, supported by limited new smelting projects and strong global demand, particularly in the packaging and electrical sectors [20][22] - Regional premiums for aluminum rose sequentially across North America, Europe, and Asia, driven by sanctions against Russian metal and supply chain disruptions [21] Company Strategy and Development Direction - The company is nearing completion of the Alumina Limited acquisition, expected to close on August 1, which is anticipated to enhance operational and financial flexibility [7][29] - Focus on safety, operational stability, and continuous improvement is emphasized, with production records set at various smelting locations [24] - The company is pursuing profitability improvement programs aimed at capturing approximately $645 million in adjusted EBITDA improvements by the end of 2025 [25] Management Comments on Operating Environment and Future Outlook - Management noted that favorable alumina and aluminum markets have contributed to improved profitability and cash flows [8] - The long-term outlook for both alumina and aluminum markets remains positive, driven by a transition towards low-carbon products [22] - Challenges in the supply chain and energy costs are acknowledged, particularly regarding the San Ciprian facility, with ongoing efforts to find competitive energy solutions [28] Other Important Information - The company is investing in two vessels for bauxite transportation in Brazil, expected to save $14 to $16 per tonne of alumina [12] - The company plans to reduce debt levels and maintain a strong balance sheet while exploring various deleveraging options [14][60] Q&A Session Summary Question: Synergies from the Alumina Limited acquisition - Management expects to realize overhead savings of $12 million immediately post-acquisition, with capital allocation improvements taking longer [32] Question: Impact of bauxite grade in Australia - Unfavorable costs of approximately $10 million are anticipated due to maintenance needs related to lower bauxite quality [36][37] Question: Sustainability of the alumina market dynamics - The alumina market is currently in a deficit, and sustainability will depend on resolving supply issues and potential smelter curtailments [41] Question: Interest in the San Ciprian facility - Six companies have expressed interest in the sale process, which is ongoing [56][68] Question: Deleveraging options - The company is exploring various options for deleveraging, including managing debt placement and evaluating cash flows [60][64]

Core Insights - Alcoa reported revenue of $2.91 billion for the quarter ended June 2024, reflecting an 8.3% increase year-over-year, with EPS at $0.16 compared to -$0.35 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $2.96 billion by 1.92%, while the EPS exceeded expectations by 45.45% [1] Financial Performance Metrics - Average realized third-party price per metric ton of alumina was $399, surpassing the average estimate of $383.76 [2] - Average realized third-party price per metric ton of aluminum was $2,858, below the average estimate of $2,999.99 [2] - Third-party alumina shipments totaled 2,267 Kmt, slightly above the estimated 2,245.65 Kmt [2] - Third-party aluminum shipments reached 677 Kmt, exceeding the estimate of 653.99 Kmt [2] - Total sales for alumina were $1.47 billion, above the estimated $1.39 billion, marking a 13.6% increase year-over-year [2] - Total sales for aluminum were $1.90 billion, slightly below the estimated $1.98 billion, with a year-over-year increase of 5.9% [2] - Third-party sales of bauxite were $96 million, below the estimate of $110.07 million, representing a 15% decrease year-over-year [2] - Third-party sales of alumina were $914 million, exceeding the estimate of $875.72 million, with a 2.2% year-over-year increase [2] - Intersegment sales of aluminum were $3 million, below the estimate of $4.50 million, reflecting a 25% year-over-year decrease [2] - Total third-party sales were $2.91 billion, below the average estimate of $2.96 billion, with an 8.3% year-over-year increase [2] - Intersegment sales of alumina were $457 million, above the estimate of $400.09 million [2] - Third-party sales of aluminum were $1.90 billion, below the average estimate of $1.97 billion, with a 6% year-over-year increase [2] Stock Performance - Alcoa shares have returned +3.1% over the past month, compared to the S&P 500 composite's +4.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

2 nd Quarter Earnings Alcoa Corporation July 17, 2024 1 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," "could," "develop," "endeavors," "estimates," "expects," "forecasts," "goal ...

分组1 - Alcoa reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, compared to a loss of $0.35 per share a year ago, indicating a significant improvement [1] - The company's quarterly revenue was $2.91 billion, which missed the Zacks Consensus Estimate by 1.92%, but showed an increase from $2.68 billion year-over-year [1] - Over the last four quarters, Alcoa has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [1] 分组2 - Alcoa shares have increased by approximately 13.7% since the beginning of the year, while the S&P 500 has gained 18.8% [2] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $0.87 for the coming quarter and $2.20 for the current fiscal year [4] - The Metal Products - Distribution industry, to which Alcoa belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable industry outlook [4] 分组3 - The estimate revisions trend for Alcoa is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [3] - Constellium, another company in the same industry, is expected to report quarterly earnings of $0.43 per share, reflecting a year-over-year change of +22.9% [5] - Constellium's anticipated revenues are $2.12 billion, which represents a slight decline of 0.2% from the previous year [5]

Exhibit 99.1 Alcoa Corporation Reports Second Quarter 2024 Results PITTSBURGH--(BUSINESS WIRE)--July 17, 2024--Alcoa Corporation (NYSE: AA) today reported results for the second quarter 2024 consistent with the Company's previously announced preliminary results that reflect sequential increases in revenue, net income, adjusted net income and Adjusted EBITDA excluding special items on higher alumina and aluminum prices, along with continued progress on profitability improvement programs. Financial Results an ...

Market Overview - Pre-market futures are down, indicating a mass realization of historically high market levels, with the Dow hitting an all-time closing high recently [1] - The Dow is down 120 points, S&P 500 down 56 points, Nasdaq down 300 points, and Russell 2000 down 17 points, but no significant correction is observed at current levels [1] Housing Market - Housing Starts for June show a bounce back to 1.352 million seasonally adjusted, annualized units, up from 1.314 million, which remains at multi-year lows [1] - Building Permits are at 1.446 million seasonally adjusted, annualized units, surpassing the expected 1.40 million and the revised May figure of 1.399 million [2] - Multi-family units led gains in Housing Starts with a 22% month-over-month increase, while Single-family units decreased by 2.2% [3] - Developers are pulling back on Multi-family developments due to sufficient supply, while Single-family homes are in short supply as current homeowners are reluctant to sell [3] Company Earnings - Johnson & Johnson (JNJ) reported Q2 earnings of $2.82 per share, beating expectations by 4%, with revenues of $22.45 billion exceeding the Zacks consensus by 0.45% [4] - Despite the earnings beat, JNJ shares are only modestly up on a down trading day, not significantly impacting the year-to-date selloff of 3% [4] - Upcoming Q2 earnings results include United Airlines (UAL) and Alcoa (AA), with expectations for continued positive performance following strong results from major Wall Street banks [4]

Loading...Loading...Alcoa Corporation AA will release its second quarter financial results, after the closing bell on Wednesday, July 17.Analysts expect the Pittsburgh, Pennsylvania-based company to report quarterly earnings at 6 cents per share, versus a year-ago loss of 35 cents per share in the year-ago period. Alcoa is expected to post revenue of $2.84 billion, compared to $2.69 billion a year earlier, according to data from Benzinga Pro.On Tuesday, Alcoa announced stockholder approval related to propos ...

Core Viewpoint - Alcoa (AA) has received an upgrade to a Zacks Rank 2 (Buy) due to a significant upward trend in earnings estimates, which is a strong indicator of potential stock price movement [1][2]. Earnings Outlook - The Zacks rating upgrade reflects a positive outlook on Alcoa's earnings, suggesting that this could lead to favorable stock price movements [2]. - For the fiscal year ending December 2024, Alcoa is expected to earn $2.20 per share, representing a 196.9% increase from the previous year's reported figure [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Alcoa has surged by 570.2%, indicating a strong upward revision trend in earnings estimates [5]. - The correlation between earnings estimate revisions and near-term stock movements is emphasized, with institutional investors often reacting to these changes, which can lead to significant price movements [3][4]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revision characteristics [6][7]. - Alcoa's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [7].

Group 1 - Alcoa (AA) is a notable stock in the Industrial Products sector, currently ranked 4 among 218 individual stocks [1] - The Zacks Rank system indicates that Alcoa has a Zacks Rank of 2 (Buy), reflecting a positive earnings outlook [2] - Alcoa's year-to-date performance shows a return of 15.6%, outperforming the sector average of 7% [2] - The Zacks Consensus Estimate for Alcoa's full-year earnings has increased by 570.2% over the past quarter, indicating improved analyst sentiment [2] - Alcoa belongs to the Metal Products - Distribution industry, which has gained an average of 9.5% year-to-date, outperforming its industry peers [3] Group 2 - Chart Industries (GTLS) is another strong performer in the Industrial Products sector, with a year-to-date return of 18.2% [2] - Chart Industries has a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 1.3% over the past three months [3] - Chart Industries is part of the Manufacturing - General Industrial industry, which has a year-to-date return of 7.4% and is currently ranked 49 [3]