Alcoa's primary aluminum segment reported an 8% year-over-year increase in shipments during the third quarter, driven by robust demand in the automotive and aerospace sectors. Sales volumes rose to 730,000 metric tons, up from 675,000 metric tons in the comparable period last year. Management highlighted strength in light-weighting initiatives among major automakers in North America and Europe, which accounted for nearly 45% of segment sales, as well as renewed aircraft production schedules in Asia contributing to order backlogs.

Average realized aluminum prices climbed by 10% sequentially to about $2,480 per metric ton, providing a material boost to segment revenues. The aluminum division generated $1.81 billion in revenue for the quarter, representing a 12% increase over the prior year. Improved pricing discipline and lower energy costs in the company’s key smelting operations helped drive segment earnings before interest and taxes (EBIT) margin up to 14.5%, compared with 12.2% a year ago.

Alcoa is on track to commission two new smelter expansion projects by mid-2025, adding combined capacity of 150,000 metric tons annually. The Juruti expansion in Brazil and the modernization of the Point Comfort facility in Texas are expected to reduce unit cash costs by $100 per metric ton once fully operational. The company’s capital expenditure plan of $850 million for 2024–2025 prioritizes low-cost greenfield and brownfield projects, positioning Alcoa to capture additional margins as global aluminum consumption is projected to grow at 3.5% annually through 2027.