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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
Revenue by Segment
Third-party bauxite sales Revenue
CapyFin.comThird-party alumina sales Revenue
CapyFin.comThird-party aluminum sales Revenue
CapyFin.com 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