Cash flow generation is frequently disrupted by working capital volatility, highlighted by a $795 million outflow in 2026Q1 that significantly impacted liquidity.
| Cash from Operations | 931M | 1.19B | 622M | 91M | 822M | 920M | 394M | 686M | 448M | 1.22B | -311M | 875M | 842M |
| Operating CF Margin % | - | 9.24% | 5.11% | 0.85% | 6.44% | 7.4% | 4.2% | 6.54% | 3.31% | 10.39% | -3.34% | 7.8% | 3.52% |
| Operating CF Growth % | -201.88% | 90.51% | 583.52% | -88.93% | -10.65% | 133.5% | -42.57% | 53.13% | -63.4% | 493.57% | -135.54% | 3.92% | - |
| Net Income | 1.03B | 1.13B | 24M | -773M | 38M | 570M | -14M | -853M | 893M | 608M | -346M | -739M | -347M |
| Depreciation & Amortization | 637M | 623M | 642M | 632M | 617M | 664M | 653M | 713M | 733M | 752M | 718M | 780M | 954M |
| Stock-Based Compensation | 43M | 41M | 36M | 35M | 40M | 39M | 25M | 30M | 35M | 24M | 28M | 35M | 39M |
| Deferred Taxes | -243M | -269M | 23M | -22M | 219M | 147M | -26M | 15M | -30M | 168M | -46M | 86M | -50M |
| Other Non-Cash Items | -483M | -409M | 396M | 489M | 756M | 172M | -220M | 1.05B | -361M | 239M | 186M | 1.15B | 864M |
| Working Capital Changes | -24M | 67M | -499M | -270M | -848M | -672M | -24M | -265M | -822M | -567M | -851M | -435M | -618M |
| Change in Receivables | 39M | 71M | -493M | 104M | -59M | -414M | 16M | 283M | -43M | -118M | -234M | 130M | -91M |
| Change in Inventory | -85M | -57M | 51M | 243M | -547M | -639M | 122M | 137M | -278M | -238M | 43M | 212M | -126M |
| Change in Payables | 74M | 63M | 190M | -74M | 189M | 354M | 25M | -153M | -165M | 377M | 6M | -156M | 110M |
| Cash from Investing | -523M | -502M | -608M | -585M | -495M | 565M | -167M | -468M | -405M | -226M | -149M | -384M | -338M |
| Capital Expenditures | -644M | -618M | -580M | -531M | -480M | -390M | -353M | -379M | -399M | -405M | -404M | -391M | -444M |
| CapEx % of Revenue | 5.09% | 4.82% | 4.76% | 4.96% | 3.76% | 3.14% | 3.77% | 3.61% | 2.95% | 3.44% | 4.33% | 3.48% | 1.85% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -40M | 14M | 9M | 16M | 7M | 966M | 198M | 23M | 1M | 245M | 112M | 70M | 223M |
| Cash from Financing | -278M | -261M | 201M | 57M | -768M | -1.16B | 514M | -444M | -288M | -506M | 749M | -162M | -444M |
| Debt Issued (Net) | -151M | -164M | 353M | 55M | 3M | -799M | 738M | -7M | 425M | -32M | 1.19B | -24M | -35M |
| Equity Issued (Net) | 0 | 0 | -15M | 0 | -500M | -150M | 0 | 0 | -50M | 0 | 0 | 0 | 0 |
| Dividends Paid | -106M | -105M | -90M | -72M | -72M | -19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -15M | 0 | -500M | -150M | 0 | 0 | -50M | 0 | 0 | 0 | 0 |
| Other Financing | -21M | 8M | -47M | 74M | -199M | -190M | -224M | -437M | -663M | -474M | -441M | -138M | -409M |
| Net Change in Cash | -259M | 458M | 187M | -427M | -450M | 314M | 727M | -233M | -249M | 505M | 296M | 291M | 53M |
| Free Cash Flow | 287M | 567M | 42M | -440M | 342M | 530M | 41M | 307M | 49M | 819M | -715M | 484M | 398M |
| FCF Margin % | 2.27% | 4.42% | 0.34% | -4.11% | 2.68% | 4.26% | 0.44% | 2.93% | 0.36% | 6.95% | -7.67% | 4.31% | 1.66% |
| FCF Growth % | -17.53% | 1250% | 109.55% | -228.66% | -35.47% | 1192.68% | -86.65% | 526.53% | -94.02% | 214.55% | -247.73% | 21.61% | - |
| FCF per Share | 1.08 | 2.15 | 0.20 | -2.47 | 1.89 | 2.79 | 0.22 | 1.66 | 0.26 | 4.38 | -3.92 | 2.65 | 2.18 |
| FCF Conversion (FCF/Net Income) | 0.28x | 1.02x | 10.37x | -0.14x | -6.68x | 2.14x | -2.32x | -0.61x | 1.79x | 5.64x | 0.78x | -1.01x | 3.14x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 111M | 100M | 226M | 270M | 309M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 507M | 363M | 265M | 265M | 184M |
Working capital volatility
As evidenced by the provided financial data, Alcoa's operating cash flow frequently decouples from net income, with the OCF/NI ratio swinging from a negative 0.42 in 2026Q1 to a high of 14.35 in 2024Q2, suggesting significant volatility in the underlying quality of reported earnings.
The extreme variance in the OCF/NI ratio indicates that net income is a poor proxy for cash generation, likely due to the impact of non-cash restructuring charges and significant working capital swings. Investors should monitor this divergence closely, as it suggests that reported profitability may not translate into sustainable liquidity during cyclical downturns.
Based on reported quarterly figures, Alcoa's free cash flow trajectory remains highly erratic, with margins oscillating between a negative 12.2% in 2024Q1 and a positive 11.8% in 2025Q2, reflecting the company's sensitivity to commodity price cycles and the high capital intensity of its smelting operations.
The inability to maintain consistent positive free cash flow suggests that the company's core operations are highly susceptible to external market shocks. This pattern of intermittent cash burn warrants further investigation into whether the current capital expenditure levels are sufficient to maintain asset efficiency without compromising long-term liquidity.
According to recent SEC filings, Alcoa's working capital management has been a significant source of cash flow volatility, highlighted by a massive $795 million outflow in 2026Q1, which directly undermined the company's ability to generate positive operating cash flow during that period.
The dramatic swings in working capital suggest that inventory and accounts receivable management are highly sensitive to production cycles and LME price fluctuations. Such large, periodic outflows imply that the company may be struggling to optimize its cash conversion cycle, potentially necessitating a more conservative approach to liquidity management.
As reported in financial statements, Alcoa's capital expenditure intensity has fluctuated significantly, with the CapEx/Revenue ratio reaching as high as 7.2% in 2023Q4, indicating that the company must continuously reinvest substantial capital to sustain its aging refining and smelting infrastructure.
The persistent need for capital investment suggests that a significant portion of cash flow is dedicated to maintenance rather than growth, which may limit the company's ability to deleverage or return capital to shareholders. Analysts should monitor whether these expenditures are effectively lowering the break-even cost per ton or merely preserving existing capacity.
Quick answers to the most common questions about buying AA stock.
Alcoa Corporation (AA) generated $1.19B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alcoa Corporation (AA) generated $567.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alcoa Corporation (AA) spent $618.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Alcoa Corporation (AA) returned $105.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.