Alcoa Reports $548 Million Net Income in Q1 2025, Significant Revenue Growth

Alcoa Corporation reported a significant turnaround in its financial performance for the first quarter of 2025, achieving a net income of $548 million, compared to a net loss of $252 million in the same period last year. This improvement was driven by higher average realized prices for both aluminum and alumina, alongside lower restructuring charges and favorable currency impacts. The company's revenue for the quarter reached $3.369 billion, marking a 30% increase from $2.599 billion in the first quarter of 2024. The earnings per share attributable to common shareholders were $2.07, a notable recovery from a loss of $1.41 per share in the prior year.

In terms of operational metrics, Alcoa's aluminum segment produced 564,000 metric tons, while alumina production totaled 2.355 million metric tons. The company reported third-party shipments of alumina at 2.105 million metric tons and aluminum at 609,000 metric tons. The average realized price for alumina was $575 per metric ton, up from $372 a year earlier, and aluminum prices averaged $3,213 per metric ton, compared to $2,620 in the first quarter of 2024. The company also noted a 57% increase in the Midwest premium for aluminum following the introduction of a 25% tariff on imports from Canada.

Strategically, Alcoa has made significant moves, including the formation of a joint venture with IGNIS Equity Holdings for its San Ciprián operations, where Alcoa holds a 75% stake. This joint venture is expected to enhance operational efficiency and financial returns. Additionally, the company completed a debt issuance of $1 billion through senior notes due in 2030 and 2032, which will help in refinancing existing debt and supporting general corporate purposes. Alcoa also settled cash tender offers for existing debt, further optimizing its capital structure.

Operationally, Alcoa's total assets increased to $14.574 billion as of March 31, 2025, up from $14.064 billion at the end of 2024. The company reported a cash and cash equivalents balance of $1.202 billion, reflecting a solid liquidity position. Alcoa's employee headcount remained stable, with ongoing efforts to manage costs effectively amid fluctuating market conditions. The company anticipates continued operational stability and strong production results in the upcoming quarters, although it remains cautious about potential impacts from tariffs and global economic conditions.

Looking ahead, Alcoa expects to maintain its production and shipment levels for both alumina and aluminum throughout 2025, with projected alumina production between 9.5 to 9.7 million metric tons and aluminum production between 2.3 to 2.5 million metric tons. The company is focused on optimizing its asset portfolio and enhancing operational efficiencies while navigating the challenges posed by market volatility and regulatory changes.