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Jun 30
Alcoa Q2 2025 Earnings Report
Alcoa reported strong operational performance and a sequential increase in cash, despite lower prices for alumina and aluminum and increased tariff costs in the second quarter of 2025.
Key Takeaways
Alcoa Corporation delivered strong operational performance in Q2 2025, with a sequential increase in cash, despite facing challenges from lower alumina and aluminum prices and higher tariff costs. The company reported a revenue of $3.018 billion and a GAAP EPS of $0.62, with net income at $164 million. Adjusted EPS was $0.39, and Adjusted EBITDA, excluding special items, was $313 million.
Revenue for Q2 2025 was $3.018 billion, a decrease from $3.369 billion in Q1 2025 but an increase from $2.906 billion in Q2 2024.
Net income attributable to Alcoa Corporation was $164 million, significantly higher than $20 million in Q2 2024, but lower than $548 million in Q1 2025.
Diluted EPS was $0.62, an improvement from $0.11 in Q2 2024, but a decline from $2.07 in Q1 2025.
Adjusted EBITDA, excluding special items, was $313 million, a decrease from $855 million in Q1 2025 and slightly lower than $325 million in Q2 2024.
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's 2025 outlook for Alumina segment production and shipments remains unchanged, while Aluminum segment production is also unchanged. However, aluminum shipments are projected to decrease due to delayed restart at the San Ciprián smelter. The company anticipates sequential favorable impacts in the Alumina segment and unfavorable impacts in the Aluminum segment for Q3 2025.
Positive Outlook
- Alumina segment production and shipments are expected to remain unchanged from prior projections (9.5 to 9.7 million metric tons for production and 13.1 to 13.3 million metric tons for shipments).
- Aluminum segment production is expected to remain unchanged from prior projections (2.3 to 2.5 million metric tons).
- Sequential favorable impacts of approximately $20 million are expected in the Alumina Segment Adjusted EBITDA for Q3 2025 due to lower maintenance costs and efficiencies at higher production rates.
- Alumina costs in the Aluminum segment are expected to be favorable by approximately $100 million sequentially in Q3 2025.
- Other expenses for Q3 2025 are expected to remain consistent with Q2 2025.
Challenges Ahead
- 2025 projection for aluminum shipments has decreased to range between 2.5 and 2.6 million metric tons, a reduction of 0.1 to 0.2 million metric tons from the prior projection.
- The reduction in aluminum shipments is primarily due to reduced production at the San Ciprián smelter as a result of the delayed restart.
- Sequential unfavorable impacts of approximately $90 million are expected in the Aluminum segment for Q3 2025 due to U.S. Section 232 tariffs on imports of aluminum from Canada.
- Operational tax expense for Q3 2025 is expected to approximate $50 million to $60 million, which may vary with market conditions and jurisdictional profitability.
- The outlook does not include reconciliations of forward-looking non-GAAP financial measures, making it impractical to forecast certain special items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income