Key TakeawaysAlcoa delivered Q2 adjusted earnings of $2.12 per share and EBITDA of $901M, falling short of analyst forecasts of $2.55 EPS and $943M EBITDA.The company reduced its 2026 alumina production forecast to 9.5M–9.6M metric tons from 9.7M–9.9M, citing operational challenges at the Pinjarra refinery in Western Australia.Quarterly revenue increased to $3.97B compared to $3.02B in the prior-year period, while net income climbed to $407M from $164M.The aluminum division’s EBITDA soared to $1.07B from $97M year-over-year, driven by elevated metal prices and reactivated production facilities.Shares of AA declined approximately 2.4% in pre-market trading Friday and have dropped roughly 12% so far this year.Alcoa (AA) shares were retreating 2.4% in early Friday trading, hovering near $45.84, following the company’s second-quarter earnings report that underperformed analyst projections and a downward revision to its annual alumina production forecast.Alcoa Corporation, AAThe aluminum manufacturer posted second-quarter adjusted earnings of $2.12 per share with EBITDA reaching $901M on total revenue of $3.97B. Wall Street consensus had anticipated earnings of $2.55 per share alongside EBITDA of $943M, based on FactSet data.On an unadjusted basis, however, the financial performance showed strength. Net income surged to $407M, equivalent to $1.53 per diluted share, versus $164M, or $0.62 per share, during the same quarter last year. Top-line revenue grew from $3.02B in Q2 2025.ALCOA $AA Q2’26 EARNINGS HIGHLIGHTS Revenue: $3.97B (Est. $3.99B) Adj. EPS: $2.12 (Est. $2.32) Lowers FY26 Alumina Outlook: Production: 9.5M-9.6M tons; cut by 0.2M-0.3M tons Shipments: 11.5M-11.6M tons; cut by 0.3M-0.4M tonsMaintains FY26 Aluminum Outlook:… pic.twitter.com/Rfoh4baRKo— Wall St Engine (@wallstengine) July 16, 2026Benchmark aluminum pricing stood at approximately $2,600 per metric ton twelve months ago. Currently, prices hover near $3,200 — a favorable market condition that significantly benefited Alcoa’s aluminum operations.Second-quarter adjusted EBITDA within the aluminum division jumped to $1.07B, a substantial increase from merely $97M in the corresponding period last year. This remarkable improvement reflects both the surge in commodity prices and the company’s decision to bring previously shuttered smelting capacity back online.Aluminum product shipments increased 18% on a sequential basis. Alcoa credited this growth to inventory realignment in North American markets during the first quarter and expanded operational capacity.Operational Challenges at Pinjarra Impact Alumina DivisionThe alumina business unit presented a contrasting picture. The segment recorded a $96M loss, an improvement from the $139M loss posted in Q2 2025, though still reflecting negative profitability.Second-quarter alumina shipments remained unchanged from the previous quarter. Shipping delays in Australian operations were partially balanced by reduced trading volumes and diminished output from the Pinjarra facility in Western Australia.Production difficulties at the Pinjarra refinery began in March when operational instability was compounded by natural gas supply interruptions caused by Cyclone Narelle. While the facility has since stabilized and resumed normal operations, the production shortfall cannot be fully recovered.“While the refinery has since returned to stable operations and is performing well, we do not expect to fully recover the production and shipment volumes that were lost during the second quarter,” CFO Molly Beerman said on the earnings call.Lowered Production Outlook Weighs on SentimentConsequently, Alcoa revised downward its 2026 alumina production guidance to a range of 9.5M–9.6M metric tons, reduced from the previous target of 9.7M–9.9M tons.This forecast reduction overshadowed the impressive results from the aluminum segment and played a significant role in the stock’s negative market response.Shares had already been facing headwinds prior to this earnings announcement. The stock declined 3.6% on Thursday and has fallen approximately 12% since the beginning of the year, despite the rally in underlying aluminum commodity prices.Adding to investor concerns is the pending acquisition announced June 30, in which Alcoa agreed to purchase South32’s bauxite, alumina, and aluminum operations for $4.1B through a combination of cash and equity. Since that transaction was revealed, shares have dropped 13%, reflecting market apprehension regarding increased leverage, shareholder dilution, and execution risks.Through Thursday’s market close, AA stock had declined 12% year to date.The post Alcoa (AA) Stock Slides as Q2 Earnings Miss and Production Forecast Lowered appeared first on Blockonomi.