Its net income attributable to the company grew 787.8% from its year-ago value to $337 million. AA reported its highest quarterly net income and earnings per share. Its adjusted EBITDA stood at $728 million, up 156.3% from the same period last year. On a sequential basis, its revenue has increased 10%, driven by higher aluminum and alumina prices and higher premiums for value-add products. Furthermore, S&P Global Market Intelligence expects metals prices to remain above historical averages through 2025.ĪA’s revenues increased 31.5% year-over-year to $3.11 billion in its fiscal third quarter, ended September 30. And AA’s recent announcement that it will resume operations at its long-standing facilities should enable the company to capitalize on the growing demand. The push for EVs is expected to drive the demand for the metal even higher. Aluminum’s light weightiness and recyclability make it a critical metal in producing electric vehicles (EV). With governments worldwide pushing for decarbonization, aluminum-producing companies’ prospects have become more positive. With the restarting of both the facilities, AA will be operating at 82% of its global smelting capacity. “Restarting the idle capacity improves the smelter’s cost structure, competitiveness, and longer-term sustainability,” explained Michael Gollschewski, Alcoa’s vice president of operations and president of Alcoa Australia.
AA also intends to resume using its Alumar smelter in Brazil. The smelter will be operating at 95% capacity. Last month, AA announced the restarting of its smelting capacity at its Portland Aluminum smelter in Australia. The 12-month median price target of $59.40 indicates a potential 18.9% upside from its last closing price. It is currently trading below its 50-day and 200-day moving averages. Over the past five days, the stock has gained 10.2% to close yesterday’s trading session at $49.98.
which is headquartered in Pittsburgh, Pa., have gained 108.5% in price over the past year and 110.7% year-to-date. Fitch Ratings recently upgraded AA’s long-term issuer default ratings to 'BBB-' from 'BB+,' citing AA’s modest debt level and reduced pension obligation, its flexibility in operations, and stable position in the industry. So, given the growing demand for aluminum and analysts' expectations of high metal prices, is AA an attractive investment? Read on to learn our view.Īlcoa Corporation ( AA ) produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company recently announced its plans to restart two of its aluminum smelting plants, potentially increasing its operating capacity to 82% globally. Alcoa’s (AA) shares have gained substantially over the year, and Wall Street analysts see a more than 15% upside in the stock.
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