10 Best Aluminum Stocks to Buy According to Billionaires

5. Alcoa Corporation (NYSE:AA)

Number of Billionaires: 10

Number of Hedge Fund Holders: 47

Alcoa Corporation (NYSE:AA), an international leader in aluminum production, bauxite mining, and alumina refining, operates in Canada, Australia, Europe, and Brazil. The company sources primary aluminum and value-added products for various industries, including construction, transportation, and packaging.

Fueled by higher alumina and aluminum prices and increased shipments, Alcoa Corporation (NYSE:AA) reported a 20% sequential growth in revenue to $3.5 billion for Q4 ended December 31, 2024. Aluminum third-party revenue surged 5%, and the alumina segment saw a 45% increase in third-party revenue. Adjusted EBITDA increased to $677 million, while net income climbed to $202 million from $90 million in the prior quarter. Alcoa reported earnings per share of $0.76, with adjusted EPS at $1.04.

Operationally, Alcoa Corporation (NYSE:AA) made significant advancements, with nine of its 11 smelters growing annual production, five accomplishing record output, and key safety improvements across its facilities. Through cost reductions in raw materials, portfolio optimization, and improved productivity, the company has successfully surpassed its $645 million profitability improvement target ahead of schedule. It has also solidified its balance sheet by repaying $385 million in debt while maintaining its dividends.

Moreover, Alcoa leveraged strong demand in the packaging and electrical sectors within the aluminum segment, overcoming challenges in the construction and automotive markets. It’s positioned as a key supplier of sustainable aluminum solutions due to its low-carbon Equilum aluminum contributing to half of its European metal sales. Alcoa Corporation’s (NYSE:AA) market position benefits from the tight global aluminum market due to smelter curtailments in Russia and delays in Indonesia.

Looking ahead, strengthened by smelter restarts and strategic expansions, Alcoa Corporation (NYSE:AA) predicts aluminum production between 2.3 million and 2.5 million tons in 2025. The company continues to focus on acquiring mining approvals in Australia, advancing energy transition projects, and further deleveraging its balance sheet. To strengthen its commitment to shareholder returns, Alcoa’s Board of Directors declared a quarterly dividend of $0.10 per share. Thus, Alcoa positions itself as one of the best aluminum stocks to buy with its strategic initiatives and strong market positioning.