# Alcoa Corporation (AA) Reports Second Quarter 2025 Results on NYSE
On July 16, 2025, Alcoa Corporation (NYSE: AA; ASX: AAI) released its financial results for the second quarter of 2025, showcasing strong operational performance amid challenging market conditions. The report highlighted a sequential increase in cash generation despite lower prices for alumina and aluminum, as well as heightened tariff costs.
## Financial Highlights
– **Revenue**:
– Q2 2025: **$3,018 million**
– Q1 2025: **$3,369 million** (decrease of **10%**)
– Q2 2024: **$2,906 million** (increase of **4%**)
– **Net Income**:
– Q2 2025: **$164 million** or **$0.62 per share**
– Q1 2025: **$548 million** (decrease of **70%**)
– Q2 2024: **$20 million** (increase of **720%**)
– **Adjusted Net Income**:
– Q2 2025: **$103 million** or **$0.39 per share**
– Q1 2025: **$568 million** (decrease of **82%**)
– Q2 2024: **$30 million** (increase of **243%**)
– **Adjusted EBITDA (excluding special items)**:
– Q2 2025: **$313 million**
– Q1 2025: **$855 million** (decrease of **63%**)
– Q2 2024: **$325 million** (decrease of **4%**)
## Operational Metrics
– **Production**:
– Alumina production: **2.4 million metric tons** (Flat vs. Q1 2025)
– Aluminum production: **572,000 metric tons** (increase of **1%** vs. Q1 2025)
– **Shipments**:
– Third-party alumina shipments: Increase of **4%** — driven by timing of shipments and increased trading.
– Total aluminum shipments: Increase of **4%** — attributed to timing of shipments.
## Cash Flow and Financing
– **Cash from Operations**:
– Q2 2025: **$488 million** (sequential improvement of **$413 million**)
– **Cash Balance**:
– End of Q2 2025: **$1.5 billion**
– **Dividends and Share Buybacks**:
– Cash dividends paid in Q2 2025: **$27 million**.
## Recent Developments
– **Joint Venture Sale**:
– Completed the sale of a **25.1% interest** in the joint venture with Saudi Arabian Mining Company (Ma’aden) on July 1, 2025, for **$1.35 billion**.
– **Australian Tax Decision**:
– Favorable ruling on a tax dispute from the Administrative Review Tribunal, confirming no additional tax liability owed.
– **Tariffs**:
– Alcoa incurred approximately **$115 million** in tariff costs on aluminum imports to the U.S. from Canada.
## Cost Metrics
– **Cost of Goods Sold (COGS)**:
– Q2 2025: **$2,652 million**
– Q1 2025: **$2,438 million** (increase of **9%**)
– Q2 2024: **$2,533 million** (increase of **5%**)
– **Days Working Capital**:
– Q2 2025: **47 days** (consistent with Q1 2025)
## Future Outlook
– **Segment Projections**:
– Alumina production: Expected to remain **between 9.5 to 9.7 million metric tons** for the year.
– Aluminum production: Projected to be **between 2.3 to 2.5 million metric tons**.
– Potential net losses expected from the San Ciprián smelter restart in 2025, with anticipated associated operational cash costs.
## Summary
Alcoa’s second quarter results illustrate resilience in operations despite market pressures from lower commodity prices and tariffs. The significant growth in year-over-year net income and strategic asset sales are noteworthy highlights that underscore the company’s focus on maintaining financial stability and shareholder returns in a challenging environment. The confirmation of no additional tax liabilities also presents a favorable strategic position moving forward.
### Alcoa Corporation and subsidiaries Statement of Consolidated Operations (unaudited) (dollars in millions, except per-share amounts)
| Quarter Ended | |||
|---|---|---|---|
| June 30, 2025 | March 31, 2025 | June 30, 2024 | |
| Sales | $3,018 | $3,369 | $2,906 |
| Cost of goods sold (exclusive of expenses below) | 2,652 | 2,438 | 2,533 |
| Selling, general administrative, and other expenses | 82 | 71 | 69 |
| Research and development expenses | 12 | 12 | 13 |
| Provision for depreciation, depletion, and amortization | 153 | 148 | 163 |
| Restructuring and other charges, net | 14 | 5 | 18 |
| Interest expense | 56 | 53 | 40 |
| Other income, net | (112) | (26) | (22) |
| Total costs and expenses | 2,857 | 2,701 | 2,814 |
| Income before income taxes | 161 | 668 | 92 |
| Provision for income taxes | 10 | 120 | 61 |
| Net income | 151 | 548 | 31 |
| Less: Net (loss) income attributable to noncontrolling interest | (13) | — | 11 |
| NET INCOME ATTRIBUTABLE TO ALCOA CORPORATION | $164 | $548 | $20 |
| EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS(1): | |||
| Basic: | |||
| Net income | $0.63 | $2.08 | $0.11 |
| Average number of common shares | 258,900,166 | 258,747,899 | 179,560,596 |
| Diluted: | |||
| Net income | $0.62 | $2.07 | $0.11 |
| Average number of common shares | 260,344,776 | 260,366,376 | 181,056,581 |
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### Alcoa Corporation and subsidiaries Consolidated Balance Sheet (unaudited) (in millions)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $1,514 | $1,138 |
| Receivables from customers | 979 | 1,096 |
| Other receivables | 225 | 143 |
| Inventories | 2,220 | 1,998 |
| Fair value of derivative instruments | 69 | 25 |
| Prepaid expenses and other current assets(1) | 388 | 514 |
| Total current assets | 5,395 | 4,914 |
| Properties, plants, and equipment | 20,413 | 19,550 |
| Less: | ||
| accumulated depreciation, depletion, and amortization | 13,742 | 13,161 |
| Properties, plants, and equipment, net | 6,671 | 6,389 |
| Investments | 1,016 | 980 |
| Deferred income taxes | 317 | 284 |
| Fair value of derivative instruments | 54 | — |
| Other noncurrent assets(2) | 1,528 | 1,497 |
| Total assets | $14,981 | $14,064 |
| LIABILITIES | ||
| Current liabilities: | ||
| Accounts payable, trade | $1,633 | $1,805 |
| Accrued compensation and retirement costs | 354 | 362 |
| Taxes, including income taxes | 246 | 102 |
| Fair value of derivative instruments | 286 | 263 |
| Other current liabilities | 674 | 788 |
| Long-term debt due within one year | 75 | 75 |
| Total current liabilities | 3,268 | 3,395 |
| Long-term debt, less amount due within one year | 2,574 | 2,470 |
| Accrued pension benefits | 235 | 256 |
| Accrued other postretirement benefits | 397 | 412 |
| Asset retirement obligations | 688 | 691 |
| Environmental remediation | 185 | 182 |
| Fair value of derivative instruments | 862 | 836 |
| Noncurrent income taxes | 79 | 9 |
| Other noncurrent liabilities and deferred credits | 458 | 656 |
| Total liabilities | 8,746 | 8,907 |
| MEZZANINE EQUITY | ||
| Noncontrolling interest | 100 | — |
| EQUITY | ||
| Preferred stock | — | — |
| Common stock | 3 | 3 |
| Additional capital | 11,560 | 11,587 |
| Accumulated deficit | (664) | (1,323) |
| Accumulated other comprehensive loss | (4,764) | (5,110) |
| Total equity | 6,135 | 5,157 |
| Total liabilities, mezzanine equity, and equity | $14,981 | $14,064 |
—
*(1) This line item includes $20 and $43 of current restricted cash at June 30, 2025 and December 31, 2024, respectively. (2) This line item includes $68 and $53 of noncurrent restricted cash at June 30, 2025 and December 31, 2024, respectively.*
