Alcoa(US:AA) ZACKS·2026-02-11 16:10Core Insights - Alcoa Corporation's Aluminum segment is experiencing strong demand in North America, particularly in the electrical and packaging markets, alongside the restart of several smelters [1][3] Industry Demand - The demand for aluminum has significantly increased due to the rising popularity of lighter and energy-efficient electric vehicles, recycled aluminum, and rechargeable batteries [2] - The growth in global air travel has led aircraft manufacturers to increase production, boosting demand for aluminum alloys used in fuselages and wings [2] Company Performance - In 2025, Alcoa's Aluminum production rose by 5% year-over-year to 2,319 kilometric tons, with third-party revenues increasing by 15.6% due to higher average realized prices [3][8] - The U.S. administration's decision to raise tariffs on imported aluminum to 50% in June 2025 has positively impacted domestic producers like Alcoa by increasing aluminum prices [3] Future Outlook - Alcoa anticipates Aluminum segment production in 2026 to be between 2.4 million and 2.6 million tonnes, with shipments expected to range from 2.6 million to 2.8 million tonnes [4][8] Peer Comparison - Constellium SE's Packaging & Automotive Rolled Products segment saw shipments increase by 4% year-over-year to 820,000 metric tons, with revenues rising by 17% to $3.2 billion [5] - Ryerson Holding Corporation's Aluminum segment shipments remained flat at 143,000 tons, but revenues increased by 7.7% to $868 million, supported by higher metal prices [6] Stock Performance and Valuation - Alcoa's shares have appreciated by 54.3% over the past three months, closely aligning with the industry's growth of 54.7% [7] - The company is currently trading at a forward price-to-earnings ratio of 12.45X, which is below the industry's average of 13.03X, and holds a Value Score of A [10] Earnings Estimates - The Zacks Consensus Estimate for Alcoa's 2026 earnings has risen by 38.5% over the past 60 days, indicating positive market sentiment [11]