Alcoa (AA, Financial) just delivered a strong third-quarter performance, and it's turning heads. Net income hit $90 million, or $0.38 per share, a sharp rebound from last year's loss of $168 million. The company's adjusted net income surged to $135 million, driven by higher alumina prices and lower raw material costs. If you've been watching Alcoa's moves lately, this shouldn't come as a surprise—its strategic decisions are finally paying off.
One of those big moves was the August 2024 acquisition of Alumina Limited. This has strengthened Alcoa's grip on the upstream aluminum market, giving it the flexibility to optimize its portfolio and boost profits. In line with this, the company also announced the sale of its 25.1% stake in the Ma'aden joint ventures for $1.1 billion, a deal expected to close in 2025. These actions are part of Alcoa's broader strategy to tighten its balance sheet and focus on growth areas that matter most.
Looking ahead, Alcoa's alumina segment is set for a strong Q4 with increased shipments and lower production costs driving further gains. The company's profitability program is on track, already hitting 80% of its $645 million target for 2025. With a cash balance of $1.3 billion, Alcoa is well-positioned to keep momentum going. Investors, take note—Alcoa's strategic positioning could mean even bigger moves in the quarters to come.
