Adjusted EPS improved to $2.67, beating the consensus of $2.45.
Adjusted EBITDA increased by 47.7% Y/Y to $913 million and the margin expanded by 324 bps to 25.1%.
Aluminum segment revenue increased 6% with higher shipments and regional premiums. The average realized third-party price per metric ton of aluminum was $3,864 in Q2.
In Alumina, third-party shipments increased 7% sequentially. In Aluminum, shipments of commodity-grade aluminum were up 9% sequentially.
Alumina produced 3.23 million metric tons for the quarter, and Aluminum produced 499,000 metric tons, largely consistent with Q1 output.
Alcoa ended the quarter with cash on hand of $1.6 billion. Cash provided from operations was $536 million.
The company year-to-date has returned $387 million of capital to stockholders through $37 million in cash dividends and $350 million in share repurchases.
Q3 Outlook: Alcoa expects higher sequential profitability in the Bauxite segment with increased shipments as refinery demand improves in the third quarter. In Alumina and Aluminum, shipments are expected to increase.
It anticipates an approximately $20 million negative impact on net income in the third quarter as a result of the Warrick line curtailment.
FY22 Outlook: Alcoa expects total Aluminum segment shipments of 2.5 and 2.6 million metric tons, the same as prior guidance.
It decreased its projection for shipments to range between 13.6 and 13.8 million metric tons.
It expects annual bauxite shipments of 44 and 45 million dry metric tons, a change of 2 million dry metric tons.
Price Action: AA shares are trading higher by 7.23% at $48.32 during the post-market session on Wednesday.
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