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Sep 30, 2024
Alcoa Q3 2024 Earnings Report
Alcoa's Q3 2024 results reflected the acquisition of Alumina Limited and sequential increases in net income, adjusted net income, and Adjusted EBITDA excluding special items.
Key Takeaways
Alcoa reported a net income of $90 million, or $0.38 per common share, and an adjusted net income of $135 million, or $0.57 per common share. Adjusted EBITDA excluding special items increased sequentially to $455 million. The company completed the acquisition of Alumina Limited and announced the sale of its interest in the Ma’aden joint ventures.
Net income increased sequentially to $90 million, or $0.38 per common share
Adjusted net income increased sequentially to $135 million, or $0.57 per common share
Adjusted EBITDA excluding special items increased sequentially to $455 million
Completed the acquisition of Alumina Limited on August 1, 2024
Alcoa
Alcoa
Alcoa Revenue by Segment
Revenue by Segment
Third-party bauxite sales Revenue
CapyFin.comThird-party alumina sales Revenue
CapyFin.comThird-party aluminum sales Revenue
CapyFin.com Forward Guidance
Alcoa expects total 2024 Alumina segment production to remain unchanged from the prior projection, ranging between 9.8 and 10.0 million metric tons. The Company is increasing its projection for shipments to range between 12.9 and 13.1 million metric tons. 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.
Positive Outlook
- Alcoa expects total 2024 Alumina segment production to remain unchanged from the prior projection, ranging between 9.8 and 10.0 million metric tons.
- The Company is increasing its projection for shipments to range between 12.9 and 13.1 million metric tons.
- 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.
- Alcoa expects 2024 total Aluminum segment production and shipments to remain unchanged from the prior projection, ranging between 2.5 and 2.6 million metric tons.
- For the fourth quarter 2024, the Company expects Aluminum Segment performance to be flat, maintaining the strong performance from the third quarter 2024.
Challenges Ahead
- The Company expects Other expenses for the fourth quarter 2024 to increase approximately $20 million sequentially on Ma’aden equity losses and equity contributions to ELYSISTM.
- Based on current alumina and aluminum market conditions, Alcoa expects fourth quarter operational tax expense to approximate $120 million to $130 million, which may vary with market conditions and jurisdictional profitability.
- The difference between production and shipments reflects trading volumes and externally sourced alumina to fulfill customer contracts due to the curtailment of the Kwinana refinery.
- Unfavorable impacts of $30 million due to higher shipments and lower production costs.
- The process began in 2020 and Alcoa is focused on receiving approval by the first quarter of 2026.
Revenue & Expenses
Visualization of income flow from segment revenue to net income