Alcoa Corporation Reports Second Quarter 2025 Results

Alcoa Corporation, a global leader in bauxite, alumina, and aluminum products, has released its financial results for the second quarter of 2025. The report highlights strong operational performance despite facing challenges such as lower prices for alumina and aluminum and increased tariff costs.

Financial Highlights

For the second quarter of 2025, Alcoa reported a revenue of $3.018 billion, a decrease from $3.369 billion in the first quarter of 2025. Net income attributable to Alcoa Corporation was $164 million, or $0.62 per share, down from $548 million, or $2.07 per share, in the previous quarter. Adjusted net income stood at $103 million, or $0.39 per share, compared to $568 million, or $2.15 per share, in the first quarter of 2025. Adjusted EBITDA excluding special items was $313 million, a significant decrease from $855 million in the prior quarter.

Business and Operational Highlights

Alcoa maintained strong aluminum production and progressed the sale of its 25.1% ownership interest in the joint venture with Saudi Arabian Mining Company (Ma’aden), which closed on July 1, 2025. The company also received a favorable decision on an Australian tax dispute and redirected Canadian-produced aluminum to customers outside the U.S. to mitigate additional tariff costs. Alcoa generated $488 million in cash from operations, ending the quarter with a cash balance of $1.5 billion.

Strategic Initiatives and Corporate Developments

Key actions during the quarter included pausing the restart of the San Ciprián smelter due to a power outage in Spain, with plans to resume the restart process after receiving assurances from the Spanish Government. The sale of Alcoa’s interest in the Ma’aden joint venture was completed, resulting in a gain expected to be recognized in the third quarter of 2025. Additionally, Alcoa received a favorable decision in an Australian tax dispute, resulting in a refund of previously paid taxes.

Management's Perspective

Alcoa President and CEO William F. Oplinger commented, “In the second quarter of 2025, we continued our relentless execution on key objectives, which included progressing the sale of our interest in the joint venture with Ma’aden. We delivered on safety, stability, and operational performance in the quarter despite lower alumina and aluminum pricing.”

Future Outlook

Alcoa expects total Alumina segment production and shipments for 2025 to remain unchanged from prior projections, ranging between 9.5 to 9.7 million metric tons and 13.1 to 13.3 million metric tons, respectively. The Aluminum segment production is also expected to remain unchanged, ranging between 2.3 and 2.5 million metric tons. However, aluminum shipments are projected to decrease due to the delayed restart of the San Ciprián smelter. The company anticipates sequential favorable impacts in the Alumina segment Adjusted EBITDA and sequential unfavorable impacts in the Aluminum segment due to U.S. Section 232 tariffs.

SEC Filing: Alcoa Corp [ AA ] - 8-K - Jul. 16, 2025