Alcoa CEO on Q3 Earnings, Data Centers, Aluminum Prices, and Tariffs

An interview with Alcoa CEO William Oplinger and CNBC's Morgan Brennan reviewing the company's third-quarter results and current market conditions. The discussion covers earnings performance, production and shipment guidance, data center development on closed Alcoa sites, aluminum demand drivers, supply disruptions, and U.S.-Canada tariff effects.

■ Earnings and Operations
- Q3 EPS beat expectations while revenue missed; management cited inflationary pressures, especially raw material costs
- Reaffirmed full-year production and shipment guidance for aluminum and alumina
- Reported production records at six facilities, close to $500 million in free cash flow, and progress on a large transaction expected to close in the first half of next year

■ Data Centers and Asset Sales
- Announced the first sale of a closed site for data center development in Massena East, New York, with a midsize developer
- Program aims to monetize $500 million to $1 billion of closed assets before 2030; about 10 sites are under consideration
- Data center growth supports aluminum demand, requiring about 30 tons of aluminum per megawatt and 30,000 metric tons per gigawatt
- Community concerns around data center development are being considered with developers

■ Aluminum Market and Trade
- Middle East conflict took about 40% of aluminum smelting capacity within the Strait of Hormuz offline; capacity is slowly returning
- Demand remains resilient across major end markets except building and construction; North America and Europe saw broad 2026 growth, with 2027 growth dependent on interest rates
- U.S.-Canada tariff dynamics: Alcoa pays close to $1 billion in gross tariff expense on a run-rate basis, while U.S. aluminum prices cover the cost; management describes it as a net positive with two U.S. assets selling under the tariff umbrella

This interview is suited for investors, commodities watchers, and those tracking industrial demand and data center infrastructure. Viewers gain a management perspective on Alcoa's quarterly performance, asset monetization plans, aluminum market supply and demand, and tariff impacts.