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Jun 30, 2024
Alcoa Q2 2024 Earnings Report
Alcoa's Q2 2024 results reflected 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.
Key Takeaways
Alcoa reported a revenue of $2.9 billion and a net income of $20 million for Q2 2024. The company saw sequential increases in revenue, net income, and adjusted EBITDA, driven by higher alumina and aluminum prices and progress on profitability improvement programs. The acquisition of Alumina Limited is expected to close on or about August 1, 2024.
Revenue increased 12 percent sequentially to $2.9 billion, on higher alumina and aluminum prices
Net income increased sequentially to $20 million, or $0.11 per share
Adjusted net income increased to $30 million, or $0.16 per share
Adjusted EBITDA excluding special items increased sequentially to $325 million
Revenue by Segment
Forward Guidance
Alcoa expects 2024 total Alumina segment production and shipments to remain unchanged from the prior projection. Alcoa expects 2024 total Aluminum segment production and shipments to remain unchanged from the prior projection. Within third quarter 2024 Alumina Segment Adjusted EBITDA, the Company expects sequential unfavorable impacts of $10 million related to bauxite grade in Australia. Within third quarter 2024 Aluminum Segment Adjusted EBITDA, the Company expects favorable raw material prices of $10 million. Interest expense in the third quarter 2024 is expected to increase by approximately $5 million due to the assumption of Alumina Limited debt at acquisition closing. Based on current alumina and aluminum market conditions, Alcoa expects third quarter operational tax expense to approximate $60 million to $70 million, which may vary with market conditions and jurisdictional profitability. Net income attributable to noncontrolling interest will be reported through the closing of the Alumina Limited acquisition in the third quarter and is expected to approximate $20 million.
Positive Outlook
- Alcoa expects 2024 total Alumina segment production and shipments to remain unchanged from the prior projection, ranging between 9.8 and 10.0 million metric tons, and between 12.7 and 12.9 million metric tons, respectively.
- Alcoa expects 2024 total Aluminum segment production and shipments to remain unchanged from the prior projection, ranging between 2.2 and 2.3 million metric tons, and between 2.5 and 2.6 million metric tons, respectively.
- Within third quarter 2024 Aluminum Segment Adjusted EBITDA, the Company expects favorable raw material prices of $10 million.
Challenges Ahead
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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