Alcoa Jumps as Much as 8% on Q3 Beat and Massena Data Center Land Deal, Then Pares Gains

AA shares rose as much as 8% to $43.69 in Friday morning trading after the aluminum producer's third-quarter results, then gave back much of the move: the stock closed up about 2.5% at roughly $41.45 from a $40.42 prior close, according to SentiSense's 15-minute-delayed data. Adjusted earnings of $1.82 per share beat the $1.49 consensus cited by 24/7 Wall St., while revenue of $3.7 billion came in just under the $3.76 billion forecast. Other trackers had the bar closer to $1.54 a share and $3.78 billion, per IBTimes, so the size of the beat depends on whose consensus you use.

Alcoa's earnings release, filed after the close on Oct. 15, shows net income attributable to the company of $483 million, up from $407 million in the second quarter and $232 million a year earlier. Revenue of $3,704 million was down from $3,966 million in the second quarter, and adjusted EBITDA excluding special items slipped to $789 million from $901 million, so the beat came against a softer sequential quarter: adjusted EPS was $2.12 in the second quarter. Alumina production rose 11% sequentially to 2,467 thousand metric tons, while total aluminum shipments fell 5%. Free cash flow was $472 million. Management said aluminum fundamentals remain strong.

The data center angle is a signed deal, not a completed sale. Alcoa entered definitive agreements to sell portions of its Massena East site in New York for data center development, with potential proceeds of up to $315 million. According to the release, $50 million to $65 million would be paid at closing depending on the data center capacity that gets approved, with a further $60 million to $250 million over seven years. Closing is expected within six months, subject to permitting and regulatory approvals, and the buyer was not named.

What to watch: Alcoa reaffirmed its full-year production outlook but flagged about $30 million of raw-material and maintenance headwinds in its aluminum segment for the fourth quarter and roughly another $30 million of higher alumina costs. Its AliGroup acquisition cleared a South32 shareholder vote on Oct. 15 and is expected to close in the first half of 2027, funded by $2.6 billion of senior notes issued in September. United States Antimony also rose 10% the same morning, though 24/7 Wall St. noted the move had no company-specific catalyst.