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Alcoa Gains From Strength in Aluminum Unit: Can the Momentum Sustain?
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Key Takeaways
Alcoa restarted key smelters, lifting aluminum production capacity.
AA expects 2026 aluminum output of 2.4-2.6M tons and shipments up to 2.8M.
Higher aluminum prices and U.S. tariffs continue to support demand.
Alcoa Corporation (AA - Free Report) is witnessing persistent strength in its Aluminum segment, driven by solid demand in the electrical and packaging markets in North America. The segment’s production capacity has been boosted by restart of the San Ciprián (Spain), Alumar (Brazil) and Lista (Norway) smelters.
Demand for aluminum has been strong over the years, with growing adoption of lighter and energy-efficient electric vehicles, recycled aluminum and rechargeable batteries. Alcoa is also benefiting from the surge in aluminum prices fueled by the Middle East conflict, which has disrupted the Strait of Hormuz. This has been affecting the overall supply of aluminum in the region, spurring its global price.
With healthy aluminum demand, the tariffs on the metal also gained traction. In June 2025, the U.S. administration increased tariffs on imported aluminum to 50% as a measure to correct trade imbalances and boost the domestic industry. The move has also increased aluminum prices, thereby benefiting domestic producers like Alcoa.
Amid this, the company provided a healthy annual outlook for production and shipment. For 2026, the Aluminum segment is expected to produce 2.4-2.6 million tons, while shipments are projected to be in the band of 2.6-2.8 million tons. The projected figures compare favorably with the segment’s 2025 production and shipments of 2.3 and 2.5 million tons, respectively.
Segment Snapshot of AA's Peers
Among its peers, Constellium SE (CSTM - Free Report) is gaining from strength in the Packaging & Automotive Rolled Products segment. The segment’s shipments increased 6% year over year to 1,086,000 metric tons in 2025, supported by a robust demand environment. Revenues from the segment increased 21% to $5.1 billion, supported by higher metal prices.
Ryerson Holding Corporation (RYZ - Free Report) is witnessing solid momentum in the Aluminum segment. The segment’s shipments were relatively flat year over year at 185,000 tons in 2025. Revenues from the segment totaled $1.15 billion, reflecting an increase of 10.4%, supported by higher metal prices and strong shipments.
AA’s Price Performance, Valuation and Estimates
Shares of Alcoa have gained 35.8% in the past three months compared with the industry’s growth of 33.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, AA is trading at a forward price-to-earnings ratio of 12.09X, just above the industry’s average of 11.97X. Alcoa carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AA’s 2026 earnings has increased 16.4% over the past 60 days.
View the Zacks #1 Rank List
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Alcoa Gains From Strength in Aluminum Unit: Can the Momentum Sustain?
Key Takeaways
Alcoa Corporation (AA - Free Report) is witnessing persistent strength in its Aluminum segment, driven by solid demand in the electrical and packaging markets in North America. The segment’s production capacity has been boosted by restart of the San Ciprián (Spain), Alumar (Brazil) and Lista (Norway) smelters.
Demand for aluminum has been strong over the years, with growing adoption of lighter and energy-efficient electric vehicles, recycled aluminum and rechargeable batteries. Alcoa is also benefiting from the surge in aluminum prices fueled by the Middle East conflict, which has disrupted the Strait of Hormuz. This has been affecting the overall supply of aluminum in the region, spurring its global price.
With healthy aluminum demand, the tariffs on the metal also gained traction. In June 2025, the U.S. administration increased tariffs on imported aluminum to 50% as a measure to correct trade imbalances and boost the domestic industry. The move has also increased aluminum prices, thereby benefiting domestic producers like Alcoa.
Amid this, the company provided a healthy annual outlook for production and shipment. For 2026, the Aluminum segment is expected to produce 2.4-2.6 million tons, while shipments are projected to be in the band of 2.6-2.8 million tons. The projected figures compare favorably with the segment’s 2025 production and shipments of 2.3 and 2.5 million tons, respectively.
Segment Snapshot of AA's Peers
Among its peers, Constellium SE (CSTM - Free Report) is gaining from strength in the Packaging & Automotive Rolled Products segment. The segment’s shipments increased 6% year over year to 1,086,000 metric tons in 2025, supported by a robust demand environment. Revenues from the segment increased 21% to $5.1 billion, supported by higher metal prices.
Ryerson Holding Corporation (RYZ - Free Report) is witnessing solid momentum in the Aluminum segment. The segment’s shipments were relatively flat year over year at 185,000 tons in 2025. Revenues from the segment totaled $1.15 billion, reflecting an increase of 10.4%, supported by higher metal prices and strong shipments.
AA’s Price Performance, Valuation and Estimates
Shares of Alcoa have gained 35.8% in the past three months compared with the industry’s growth of 33.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, AA is trading at a forward price-to-earnings ratio of 12.09X, just above the industry’s average of 11.97X. Alcoa carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AA’s 2026 earnings has increased 16.4% over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.