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Mar 31
Alcoa Q1 2025 Earnings Report
Alcoa reported strong earnings growth driven by higher aluminum prices and strategic joint ventures.
Key Takeaways
Alcoa posted a significant turnaround in Q1 2025, achieving strong revenue and net income gains due to favorable market conditions for aluminum and a focus on operational excellence.
Net income reached $548 million, reversing a loss from the same quarter last year.
Adjusted EBITDA rose to $855 million, mainly driven by higher aluminum prices.
Alcoa formed a joint venture with IGNIS to support San Ciprián operations.
Despite tariffs on Canadian aluminum imports, cash and liquidity remained strong with $1.2 billion in cash.
Alcoa
Alcoa
Alcoa Revenue by Segment
Forward Guidance
Alcoa expects steady production volumes and alumina EBITDA, but anticipates cost pressures and tariff impacts in the aluminum segment.
Positive Outlook
- 2025 alumina production expected to remain between 9.5 to 9.7 million metric tons.
- Strong alumina segment EBITDA performance expected to continue in Q2.
- Alumina costs in aluminum segment expected to improve by $165 million in Q2.
- Operational tax benefit of $50–$60 million anticipated in Q2 2025.
- Restart of San Ciprián smelter supported by new joint venture structure.
Challenges Ahead
- $90 million expected impact from U.S. Section 232 aluminum import tariffs in Q2.
- $15 million in San Ciprián restart costs projected for Q2.
- Working capital days increased to 47, indicating rising inventory levels.
- Accounts payable decreased due to lower alumina trading activity.
- Increase in other expenses forecasted due to equity investment losses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income