Alcoa Corporation

Good afternoon and welcome to the Alcoa Corporation third quarter 2026 earning presentation and conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Louis Langlois, Senior Vice President of Treasury and Capital Markets.

Please go ahead. Thank you and good day, everyone. I'm joined today by William Oplinger, Alcoa Corporation President and Chief Executive Officer, and Molly Beerman, Executive Vice President and Chief Financial Officer. We will take your questions after comments by Bill and Molly. As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation and in our SEC filings. In addition, we have included some non-GAAP financial measures in this presentation. For historical non-GAAP financial measures, reconciliation to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation. We have not presented quantitative reconciliations of certain forward-looking non-GAAP financial measures for reasons noted on this slide. Any reference in our discussion today to EBITDA means adjusted EBITDA. Finally, as previously announced, the earnings press release and slide presentation are available on our website. Now, I'd like to turn over the call to Bill.

Thank you, Louis, and welcome to our third quarter 2026 earnings conference call. Before discussing our results, I want to address the tragic fatality that occurred on September 16th at our Al-Yamar smelter in Brazil. The loss of one of our colleagues has deeply affected all of us at Alcoa and our thoughts remain with his family, friends, and coworkers. We are a company grounded in our values, act with integrity, operate with excellence, care for people, and lead with courage. Safety is fundamental to our values and it guides how we run our business. There is no production target, financial result, or business objective that is more important than ensuring every employee and contractor returns home safely every day. Over many years, we have strengthened our safety systems and dedicated significant resources to improving safety performance. Those efforts have resulted in meaningful progress in many areas of our business. But when we lose a colleague, progress is not enough. I am personally committed to ensuring we learn from this event and take the actions necessary to strengthen our safety culture, reduce risk across our operations, and hold ourselves accountable to the highest safety standards. This tragedy reinforces that safety requires relentless focus, constant vigilance, and an unwavering commitment from every one of us every day. With that commitment firmly in mind, I'll now turn to our third quarter results. We continued to build operational momentum and delivered strong third quarter performance. We achieved six year-to-date production records, increased aluminum production by approximately 15,000 metric tons sequentially, completed the IMR smelter restart, and delivered a significant performance recovery at the Pinjera refinery. Together, these results demonstrate improving stability and disciplined execution across the portfolio. We reached a definitive agreement for the sale of a portion of the Messina East site with potential cash proceeds of up to $315 million. We expect to receive the first $50 million to $65 million at closing, which is anticipated within six months, subject to customary permitting, regulatory approvals, key development, and closing conditions. We expect to receive the remaining cash consideration before the end of the decade, although the agreement provides up to seven years for commissioning. This is the first transaction supporting our target to generate $500 million to $1 billion from asset monetization by 2030. The Ally Group acquisition continues to advance. The asset's strong first half 2026 performance reinforces our confidence in the strategic and financial rationale for the transaction. SAL32 shareholders approved the transaction, bringing us another step closer to our expected closing in the first half of 2027. Let me now provide an update on our progress toward transaction closing. Since announcing the Ally Group acquisition on June 30th, we have made meaningful progress towards closing. In September, we completed the $2.6 billion debt financing and canceled the bridge facility. Completing the financing early reduced execution risk and provides certainty around funding the cash consideration. We estimate that the locked box value was more than $300 million at the end of the quarter based on publicly available information, including production guidance provided by SAL 32. The regulatory approval process is progressing well across the relevant jurisdictions. Earlier this month, I met with President Ramaphosa and other key stakeholders in South Africa. Our engagement with stakeholders has been positive and we remain confident in securing the required approvals to meet our expected first half of 2027 closing timeline. Our transition and integration teams are actively preparing for ownership of the assets. Thank you, Bill.