Alcoa's Profitability Program Reaping Results - Analyst Sees Tailwinds From Lagged Alumina Pricing

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$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]