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Alcoa
🇺🇸 NYSE:AA
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Jun 30, 2023

Alcoa Q2 2023 Earnings Report

Reported higher sequential revenue due to increased shipments which outweighed lower average realized pricing.

Key Takeaways

Alcoa Corporation reported second quarter 2023 results, which included higher sequential revenue as increased shipments outweighed lower average realized pricing. The company generated revenue of $2.68 billion and posted a net loss attributable to Alcoa of $102 million, or $0.57 per share. Adjusted EBITDA excluding special items was $137 million, and the company finished the quarter with a cash balance of $1.0 billion.

Generated revenue of $2.68 billion.

Posted Net loss attributable to Alcoa of $102 million, or $0.57 per share, an improvement of 56 percent sequentially.

Recorded Adjusted EBITDA excluding special items of $137 million.

Finished the second quarter with a cash balance of $1.0 billion.

Total Revenue
$2.68B
Previous year: $3.64B
-26.3%
EPS
-$0.35
Previous year: $2.67
-113.1%
Bauxite Production
10M
Previous year: 10.2M
-2.0%
Alumina Production
2.56M
Previous year: 3.23M
-20.7%
Aluminum Production
523K
Previous year: 499K
+4.8%
Gross Profit
$169M
Previous year: $877M
-80.7%
Cash and Equivalents
$990M
Previous year: $1.64B
-39.6%
Free Cash Flow
-$128M
Previous year: $429M
-129.8%
Total Assets
$14.1B
Previous year: $15.7B
-10.1%

Alcoa

Alcoa

Alcoa Revenue by Segment

Forward Guidance

The Company expects 2023 total alumina and aluminum shipments to remain unchanged between 12.7 and 12.9 million metric tons, and between 2.5 and 2.6 million metric tons, respectively.

Positive Outlook

  • Alumina Segment Adjusted EBITDA is expected to improve by $65 million due to lower raw material prices.
  • Alumina Segment Adjusted EBITDA is expected to improve due to lower production costs and higher volumes as elevated maintenance from the second quarter of 2023 has concluded.
  • Net improvement of $25 million in Aluminum Segment Adjusted EBITDA is expected on favorable raw materials.
  • Net improvement of $25 million in Aluminum Segment Adjusted EBITDA is expected due to lower production costs.
  • Alumina costs are expected to be favorable by $5 million.

Challenges Ahead

  • Unfavorable impacts of $10 million related to operating the Kwinana and Pinjarra refineries with the lower bauxite grade.
  • Unfavorable value add aluminum products sales, primarily due to softer billet demand.
  • The second quarter 2023 included favorable foreign currency gains of $40 million that may not recur.
  • Based on current alumina and aluminum market conditions, Alcoa expects third quarter operational tax expense to approximate $10 million to $20 million, which may vary with market conditions and jurisdictional profitability.
  • No other negatives were provided.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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