Alcoa Corp. reported fourth-quarter revenue of $3.45 billion, a 1.1% decline year-over-year, yet comfortably above the Zacks Consensus Estimate of $3.24 billion. The company delivered adjusted earnings per share of $1.26, surpassing the consensus forecast of $0.95 by more than 30%. This marked a significant improvement from the prior-year EPS of $1.04, underscoring Alcoa’s ability to manage costs and drive operational efficiency despite modest top-line pressure.

Net profit for the quarter rose to $226 million, up from $202 million in the same period last year. Strong sales volumes in both alumina and primary aluminum segments, combined with disciplined cost controls, contributed to a 6.3% positive surprise on revenues and a 32.6% upside on EPS versus consensus estimates. Free cash flow remained robust, benefiting from working capital improvements and sustaining investments in key capacity expansions.

On January 23, B. Riley reiterated its Buy rating on Alcoa and raised its 12-month price target from $44 to $78, signaling increased confidence in the company’s growth trajectory. The upgrade reflects expectations of higher aluminum demand driven by smelter restarts and favorable market fundamentals across aerospace, automotive and construction end markets. Alcoa’s leading position in bauxite mining, alumina refining and smelting, alongside a diversified global footprint, positions it to capture margin upside in a tightening supply environment.