Alcoa Corp

Strong Q1 start; execution + higher aluminum prices offset volume/friction (financial highlights) - Revenue: $3.2B, down 7% sequentially (mainly Alumina -33% from lower shipments, purchased/resold volumes, and Middle East/Cyclone logistics disruptions; Aluminum +3% from higher realized price and San Ciprián shipments). - Net income (attributable): $425M vs $213M prior quarter; EPS $1.60. - Adjusted EBITDA: $595M (+$68M QoQ), driven mainly by higher metal prices (LME and Midwest premium) with partial offset from lower shipping volumes.

Guidance / outlook: Q2 and full-year positioning remains intact, with specific cost/tail risks - Management expects to deliver a strong Q2 and full-year 2026; Alumina segment unfavorable by ~$15M and Aluminum favorable by ~$55M (netting to a positive skew for overall EBITDA vs segment headwinds). - Q2 alumina headwinds: guided lower bauxite offtake margins/volumes (~$10M) plus higher diesel energy costs (primarily mining diesel), with other energy/inputs lag effects. - Pricing benefit expected in Q2: higher LME and Midwest premium and higher shipments, but also tariff cost up ~ $35M (Canadian metal into the U.S. under Section 232).

Cash flow: EBITDA strength but seasonal working capital keeps free cash flow negative; delevering via note redemption - Cash: ended Q1 with $1.4B. - Free cash flow: - $298M (seasonal working capital build, capex, and environmental/ARO payments). - Adjusted net debt: $1.8B. - Capital allocation / balance sheet: on April 14 gave notice to redeem $219M of 2028 notes in May at par, expected to reduce interest expense to ~$135M for 2026 (slightly lower).