Alcoa Reports $232 Million Net Income in Q3 2025, Driven by Higher Aluminum Prices

Alcoa Corporation reported a net income of $232 million for the third quarter of 2025, a significant increase from $90 million in the same period last year. The company's revenue for the quarter reached $2.995 billion, up from $2.904 billion in the third quarter of 2024. For the nine-month period ending September 30, 2025, Alcoa's net income was $944 million, compared to a loss of $142 million in the prior year. This turnaround in profitability was attributed to higher aluminum prices, a gain from the sale of its interest in a Saudi Arabia joint venture, and improved operational efficiencies across its segments.

The company experienced notable changes in its operational structure, including the permanent closure of the Kwinana alumina refinery in Australia, which had been fully curtailed since June 2024. This decision was influenced by the refinery's age, operating costs, and market conditions. Additionally, Alcoa completed the sale of its 25.1% ownership interest in the Saudi Arabia joint venture to Ma’aden for $1.35 billion, which included both cash and shares. This transaction resulted in a gain of $786 million recorded in other income for the quarter.

Alcoa's operational metrics showed increased production across its segments, with aluminum production reaching 579,000 metric tons in the third quarter, up from 572,000 metric tons in the previous quarter. The company also reported third-party shipments of alumina at 2.205 million metric tons, reflecting a slight increase from 2.195 million metric tons in the prior quarter. The average realized price for aluminum rose to $3,374 per metric ton, compared to $3,143 in the previous quarter, driven by higher regional premiums and improved market conditions.

Looking ahead, Alcoa expects continued stability in its operations, with projected total alumina production and shipments remaining unchanged from prior estimates, ranging between 9.5 to 9.7 million metric tons for production and 13.1 to 13.3 million metric tons for shipments. The company anticipates that the fourth quarter will benefit from the absence of restructuring charges related to the Kwinana refinery and expects to see higher shipments and lower production costs. However, it also faces challenges from tariffs on U.S. imports of aluminum from Canada and potential inefficiencies during the restart of the San Ciprián smelter.