Alcoa Q1 Net Income Rises to $425M Despite $179M Cash Flow Shortfall
Alcoa’s stock has climbed 134% over the past year as Middle East smelter outages, shipping disruptions and U.S. tariffs push aluminum prices near $70. In Q1 2026, revenue fell to $3.19 billion but net income rose to $425 million and EBITDA to $595 million despite a negative $179 million operating cash flow.
1. Market Dynamics Boost Aluminum Prices
Middle East smelter disruptions, shipping bottlenecks and U.S. tariffs have tightened global aluminum supply, driving spot prices near $70 and boosting Alcoa’s domestic smelting margins.
2. Mixed Q1 Financial Performance
For Q1 2026, Alcoa reported revenue of $3.19 billion, down from prior-year alumina shipment declines, while net income climbed to $425 million and EBITDA reached $595 million, reflecting elevated aluminum pricing.
3. Alumina Division Challenges
Operating cash flow was negative $179 million due to inventory timing and shipment repositioning, and the alumina segment remains under pressure from oversupply in China and Indonesia, with some refineries still loss-making.