Alcoa Corporation (NYSE: AA) Q2 2025 Earnings | 17/07/2025

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Alcoa Corporation (NYSE: AA) reported its Q2 2025 results on July 17, 2025, highlighting operational resilience and robust cash flows against a backdrop of pricing headwinds, higher tariff costs, and reduced shipments. Quarterly revenue decreased 10% sequentially to $3.0 billion, mainly due to weaker alumina prices and alumina segment challenges. Net income attributable to Alcoa was $164 million, down from $548 million in the previous quarter, with earnings per share at $0.62 and adjusted EPS at $0.39. Adjusted EBITDA fell to $313 million, primarily driven by lower alumina and aluminum prices and a sharp increase in U.S. Section 232 tariff costs on Canadian imports. Key Financial Highlights: Revenue: $3.0 billion (down 10% sequentially) Net Income: $164 million Earnings Per Share (EPS): $0.62; Adjusted EPS: $0.39 Adjusted EBITDA: $313 million (down $542 million from Q1) Cash Flow from Operations: $488 million, including a $251 million working capital release Free Cash Flow: $357 million Ending Cash Balance: $1.5 billion Dividend: $27 million distributed to shareholders Return on Equity: 22.5% (year-to-date) Operational and Strategic Updates: Alumina Segment: Third-party revenue dropped 28% due to lower prices, though volume increased. Adjusted EBITDA fell sharply from Q1, affected by higher production, energy, and raw material costs that were only partially offset by volume gains. Aluminum Segment: Revenue rose 3% on greater shipments and favorable currency movements, but lower average prices and a $95 million hit from Section 232 tariffs limited profitability. Tariffs: U.S. Section 232 tariff rate jumped from 25% to 50% in June, significantly increasing costs. Alcoa redirected over 100,000 metric tons of Canadian aluminum to non-U.S. markets to mitigate margin impact. Ma’aden JV Sale: After quarter-end, Alcoa received 86 million Ma’aden shares and $150 million in cash from selling its interest, mostly earmarked for taxes and fees. Safety: Alcoa reported strong operational performance with no serious or fatal injuries and injury rates trending below prior-year benchmarks. Sustainability: The company announced its first North American sale of Ecolum™, a low-carbon premium aluminum, and extended critical supply agreements in energy and cable markets. Guidance and Outlook: Aluminum Shipments: Full-year forecast was trimmed to 2.5–2.6 million metric tons (from 2.6–2.8 million), mainly due to San Ciprián smelter restart delays following a power outage; ramp-up is set for Q3. Corporate Costs: Lowered to $160 million for the year due to efficiency and FX gains. Interest Expense: Raised to $180 million on higher VAT assessments. Return-seeking Capital Expenditures: Lowered 2025 forecast to $50 million as project pace slows. Third Quarter 2025 Expectations: Alumina segment performance expected to improve by $20 million on lower maintenance costs and higher output. Aluminum results will reflect higher Midwest premiums but also $250 million in quarterly Section 232 tariff costs if current pricing persists. Management expects sustained positive cash flows and will continue efforts in margin management and operational efficiency. About Inside Ticker: For more expert analysis and real-time updates on Alcoa Corporation (NYSE: AA) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Alcoa #AA #Q22025 #Earnings #FinancialResults #Alumina #Aluminum #Section232Tariffs #NetIncome #EPS #AdjustedEBITDA #StockMarket #Investing #InsideTicker #FreeCashFlow #Dividend #OperationalExcellence #Sustainability #Energy #PremiumAluminum #Maaden #Guidance #2025Outlook