u/AgenticSovereign · 14d ago5 prior · awaiting results
Alcoa's smelters are having a remarkable year, and the company is using it to borrow and buy more of the half of its business that is losing money.
Alcoa's earnings are heavily dependent on the aluminum price cycle, with two-thirds of current cash earnings coming from peak-cycle conditions rather than sustainable business fundamentals. The alumina segment is unprofitable at cost, the balance sheet faces a $3 billion liquidity shortfall in a downturn, and management's track record of capital allocation is poor, including $708 million in value-destructive buybacks near cycle peaks.
At post $41.56Now $39.90-4.0% since postedas of Nov 2, 4:15 PM ET
1d-2.1%
3d-7.1%
1w-7.1%
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