Revenue rebounded 31.4% YoY to $4.0B in 2026Q2, with gross margin expanding to 25.2% and operating income jumping 68.5% QoQ to $718M, though net income of $407M trails operating income due to non-operating charges.
Alcoa Corporation (AA) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Sales/Revenue | 13.6B | 12.83B | 12.18B | 10.71B | 12.76B | 12.44B | 9.37B | 10.49B | 13.52B | 11.78B | 9.32B | 11.22B | 23.95B |
| Revenue Growth % | 3.1% | 5.31% | 13.81% | -16.11% | 2.61% | 32.7% | -10.7% | -22.36% | 14.75% | 26.33% | -16.89% | -53.14% | - |
| Cost of Goods Sold | 11.05B | 10.66B | 10.69B | 10.46B | 10.83B | 9.81B | 8.61B | 9.29B | 10.82B | 9.76B | 8.62B | 9.82B | 20.51B |
| COGS % of Revenue | - | 83.06% | 87.71% | 97.75% | 84.85% | 78.92% | 91.84% | 88.55% | 80.07% | 82.85% | 92.4% | 87.51% | 85.65% |
| Gross Profit | 2.56B | 2.17B | 1.5B | 241M | 1.93B | 2.62B | 765M | 1.2B | 2.69B | 2.02B | 709M | 1.4B | 3.44B |
| Gross Margin % | 18.79% | 16.94% | 12.29% | 2.25% | 15.15% | 21.08% | 8.16% | 11.45% | 19.93% | 17.15% | 7.6% | 12.49% | 14.35% |
| Gross Profit Growth % | - | 45.06% | 521.58% | -87.53% | -26.28% | 242.75% | -36.36% | -55.38% | 33.37% | 184.91% | -49.39% | -59.24% | - |
| Operating Expenses | 1.47B | 1.42B | 332M | 265M | 236M | 258M | 233M | 307M | 279M | 312M | 324M | 410M | 1.21B |
| OpEx % of Revenue | - | 11.03% | 2.72% | 2.48% | 1.85% | 2.07% | 2.49% | 2.93% | 2.06% | 2.65% | 3.47% | 3.65% | 5.07% |
| Selling, General & Admin | 330M | 299M | 275M | 226M | 204M | 227M | 206M | 280M | 248M | 284M | 359M | 353M | 383M |
| SG&A % of Revenue | - | 2.33% | 2.26% | 2.11% | 1.6% | 1.83% | 2.2% | 2.67% | 1.83% | 2.41% | 3.85% | 3.15% | 1.6% |
| Research & Development | 21M | 24M | 57M | 39M | 32M | 31M | 27M | 27M | 31M | 32M | 33M | 69M | 95M |
| R&D % of Revenue | - | 0.19% | 0.47% | 0.36% | 0.25% | 0.25% | 0.29% | 0.26% | 0.23% | 0.27% | 0.35% | 0.61% | 0.4% |
| Other Operating Expenses | 4M | 1.09B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.08B | 758M | 1.17B | -24M | 1.7B | 2.36B | 532M | 895M | 2.42B | 1.71B | 385M | 991M | 2.22B |
| Operating Margin % | 7.96% | 5.91% | 9.57% | -0.22% | 13.3% | 19.01% | 5.68% | 8.53% | 17.87% | 14.5% | 4.13% | 8.83% | 9.29% |
| Operating Income Growth % | - | -34.99% | 4958.33% | -101.41% | -28.21% | 344.36% | -40.56% | -62.94% | 41.39% | 343.64% | -61.15% | -55.44% | - |
| EBITDA | 1.74B | 1.38B | 1.81B | 608M | 2.31B | 3.03B | 1.19B | 1.61B | 3.15B | 2.46B | 1.1B | 1.77B | 3.18B |
| EBITDA Margin % | 12.79% | 10.76% | 14.84% | 5.68% | 18.13% | 24.35% | 12.64% | 15.32% | 23.29% | 20.88% | 11.83% | 15.78% | 13.27% |
| EBITDA Growth % | -35.89% | -23.62% | 197.37% | -73.73% | -23.58% | 155.53% | -26.31% | -48.92% | 27.97% | 123.03% | -37.72% | -44.27% | - |
| D&A (Non-Cash Add-back) | 657M | 623M | 642M | 632M | 617M | 664M | 653M | 713M | 733M | 752M | 718M | 780M | 954M |
| EBIT | 1.34B | 1.22B | 445M | -477M | 808M | 1.39B | 319M | -317M | 1.75B | 1.26B | 81M | -67M | 971M |
| Net Interest Income | -120M | -158M | -156M | -107M | -106M | -195M | -146M | -121M | -122M | -104M | -243M | -270M | -309M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 120M | 158M | 156M | 107M | 106M | 195M | 146M | 121M | 122M | 104M | 243M | 270M | 309M |
| Other Income/Expense | 133M | 306M | -877M | -560M | -995M | -1.17B | -359M | -1.33B | -790M | -549M | -547M | -1.33B | -1.73B |
| Pretax Income | 1.22B | 1.06B | 289M | -584M | 702M | 1.2B | 173M | -438M | 1.63B | 1.16B | -162M | -337M | 497M |
| Pretax Margin % | 8.94% | 8.29% | 2.37% | -5.45% | 5.5% | 9.64% | 1.85% | -4.17% | 12.02% | 9.84% | -1.74% | -3% | 2.08% |
| Income Tax | -30M | -55M | 265M | 189M | 664M | 629M | 187M | 415M | 732M | 592M | 184M | 402M | 284M |
| Effective Tax Rate % | -2.47% | -5.17% | 91.7% | -32.36% | 94.59% | 52.46% | 108.09% | -94.75% | 45.05% | 51.08% | -113.58% | -119.29% | 57.14% |
| Net Income | 1.28B | 1.16B | 60M | -651M | -123M | 429M | -170M | -1.13B | 250M | 217M | -400M | -863M | 268M |
| Net Margin % | 9.39% | 9.02% | 0.49% | -6.08% | -0.96% | 3.45% | -1.81% | -10.72% | 1.85% | 1.84% | -4.29% | -7.69% | 1.12% |
| Net Income Growth % | 27.19% | 1828.33% | 109.22% | -429.27% | -128.67% | 352.35% | 84.89% | -550% | 15.21% | 154.25% | 53.65% | -422.01% | - |
| Net Income (Continuing) | 1.25B | 1.12B | 24M | -773M | 38M | 570M | -14M | -853M | 893M | 559M | -346M | -739M | 177M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 67M | 76M | 0 | 1.59B | 1.51B | 1.61B | 1.71B | 1.77B | 1.97B | 2.27B | 2.04B | 2.07B | 2.47B |
| EPS (Diluted) | 4.84 | 4.44 | 0.28 | -3.65 | -0.57 | 2.26 | -0.91 | -6.07 | 1.20 | 1.16 | -2.19 | -4.73 | -1.40 |
| EPS Growth % | 27.86% | 1485.71% | 107.67% | -540.35% | -125.22% | 348.35% | 85.01% | -605.83% | 3.45% | 152.97% | 53.7% | -237.86% | - |
| EPS (Basic) | - | 4.47 | 0.28 | -3.65 | -0.57 | 2.30 | -0.91 | -6.07 | 1.22 | 1.18 | -2.19 | -4.73 | -1.40 |
| Diluted Shares Outstanding | 263.77M | 263.3M | 214.05M | 178M | 181M | 190M | 186M | 185M | 188.53M | 186.98M | 182.54M | 182.4M | 182.4M |
| Basic Shares Outstanding | 263.77M | 260.93M | 212.42M | 178M | 181M | 186M | 186M | 185M | 186.23M | 184.42M | 182.54M | 182.4M | 182.4M |
| Dividend Payout Ratio | - | 8.99% | 148.33% | - | - | 4.43% | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AA stock.
For fiscal year 2025, Alcoa Corporation (AA) reported total revenue of $12.83B. This represents a 46.4% decline compared to $23.95B in 2014.
Alcoa Corporation (AA) is profitable, generating $1.16B in net income for the fiscal year ending 2025 with a net profit margin of 9.0%.
Alcoa Corporation (AA) reported an operating income of $758.0M, resulting in an operating profit margin of 5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Alcoa Corporation (AA) generated $2.17B in gross profit for the year, representing a gross profit margin of 16.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Aluminum price volatility exposure
Metrics are mathematically derived from official filings.
Revenue Rebound Led by Volume and Pricing
Alcoa's revenue surged 31.4% year-over-year in 2026Q2 to $4.0B, according to the latest quarterly report, marking a sharp acceleration from the prior quarter's 5.2% decline.
The sequential rebound from $3.2B in 2026Q1 to $4.0B in 2026Q2 suggests a strong demand recovery, likely driven by both higher aluminum prices and increased shipment volumes. This growth appears durable as it follows a period of mixed performance, with 2025Q4 showing a 13.3% decline, indicating cyclicality. Investors should monitor whether this pace is sustainable given the commodity's price sensitivity.
Gross Margin Expansion Signals Pricing Power
Gross margin improved to 25.2% in 2026Q2 from 21.3% in the prior quarter, as reported in financial statements, reflecting stronger aluminum prices and cost controls.
The 390 basis point sequential expansion in gross margin, coupled with a 46.7% increase in gross profit, indicates that Alcoa is capturing higher value from its product mix. This margin level is well above the peer average of around 10%, suggesting a competitive advantage in upstream operations. However, the volatility in margins—from 3.3% in 2024Q1 to 27.8% in 2024Q4—highlights the cyclicality inherent in aluminum pricing.
Operating Leverage Amplifies Earnings
Operating income jumped to $718M in 2026Q2 from $426M in 2026Q1, a 68.5% increase, as per the income statement, while SG&A rose only 21.7%.
The operating margin expanded to 18.1% from 13.3% sequentially, demonstrating that revenue growth is flowing through to the bottom line faster than overhead costs. This operating leverage is a key driver of the 146% EPS growth in 2026Q2, as fixed costs are spread over a larger revenue base. The trend suggests management is effectively controlling discretionary spending, though the negative operating income in 2025Q4 (-$112M) underscores the risk when volumes decline.
Earnings Quality Tempered by Tax and Non-Operating Items
Net income of $407M in 2026Q2 is lower than operating income of $718M, per the income statement, implying significant non-operating charges or taxes.
The gap between operating and net income suggests a high effective tax rate or other deductions, which may reduce the quality of reported earnings. Additionally, EPS of $1.55 is below the prior quarter's $1.60 despite higher net income, indicating a potential increase in share count or one-time items. Stock-based compensation of $17M is modest, but investors should monitor the sustainability of the tax rate and any non-recurring items.
Cost Discipline Amidst Revenue Volatility
COGS as a percentage of revenue fell to 74.8% in 2026Q2 from 78.7% in 2026Q1, based on reported figures, indicating improved cost absorption.
The decline in COGS ratio suggests that Alcoa is benefiting from lower input costs or operational efficiencies, which is critical in a commodity business. SG&A expenses of $101M are relatively stable, but the negative R&D in 2025Q4 (-$11M) is unusual and may reflect a credit or reversal, warranting further investigation. Overall, cost management appears disciplined, but the volatility in gross margin highlights the challenge of maintaining profitability when aluminum prices fall.
2026Q2 Marks a Turning Point
The 2026Q2 quarter stands out as a pivotal inflection, with revenue and operating income reaching multi-quarter highs, as per the income statement, signaling a potential new growth phase.
After a trough in 2024Q1 with a net loss of $252M, Alcoa has shown a clear upward trajectory, culminating in 2026Q2's strong performance. The sequential improvement in gross margin from 16.7% in 2025Q4 to 25.2% in 2026Q2 suggests a structural shift in pricing or cost structure. This inflection appears driven by a combination of higher aluminum prices and operational improvements, but its durability will depend on sustained demand and cost control.
What Could Invalidate the Base Case
Despite strong 2026Q2 results, the sharp swings in margins and earnings, as seen in the data, highlight vulnerability to aluminum price declines and potential tax anomalies.
The historical volatility—gross margin ranging from 3.3% to 27.8% and net income swinging from -$252M to $548M—underscores the cyclicality that could reverse the current momentum. The gap between operating and net income in 2026Q2 suggests possible one-time charges or tax rate fluctuations that may not be sustainable. Additionally, the negative R&D in 2025Q4 and the inconsistent EPS relative to net income warrant scrutiny, as they could indicate earnings management or non-recurring items. Investors should be cautious about extrapolating the current quarter's performance without evidence of structural cost improvements.