Alcoa Reports Significant Financial Improvement with $164M Net Income in Q2 2025

Alcoa Corporation reported a significant increase in financial performance for the second quarter of 2025, with net income attributable to the company reaching $164 million, compared to $20 million in the same quarter of the previous year. Revenue for the quarter was $3.018 billion, up from $2.906 billion in the second quarter of 2024. For the first half of 2025, Alcoa's net income totaled $712 million, a substantial recovery from a net loss of $232 million in the first half of 2024. The company attributed this improvement to higher aluminum and alumina prices, lower restructuring charges, and favorable currency impacts.

In terms of operational metrics, Alcoa's shipments of alumina increased to 2.195 million metric tons in the second quarter, while aluminum shipments rose to 634,000 metric tons. The average realized price per metric ton of aluminum was $3,143, reflecting a year-over-year increase from $2,743. However, the company faced challenges due to tariffs on U.S. imports of aluminum from Canada, which increased from 25% to 50% during the quarter, impacting pricing and costs.

Strategically, Alcoa has made notable moves, including the formation of a joint venture with IGNIS Equity Holdings for the San Ciprián operations, where Alcoa holds a 75% stake. This joint venture is expected to facilitate the restart of the smelter, which had been operating at reduced capacity. Additionally, on July 1, 2025, Alcoa completed the sale of its 25.1% interest in a Saudi Arabia joint venture to Ma’aden for $1.35 billion, which will result in a recognized gain of approximately $780 million in the third quarter.

The company also reported a cash position of $1.514 billion as of June 30, 2025, an increase from $1.138 billion at the end of 2024. Alcoa's total assets rose to $14.990 billion, up from $14.064 billion at the end of the previous fiscal year. The company continues to focus on optimizing its asset portfolio and managing costs, with plans to maintain production levels in the alumina segment between 9.5 to 9.7 million metric tons for the year. Looking ahead, Alcoa anticipates ongoing challenges from market conditions, including the impact of tariffs and fluctuating commodity prices, but remains committed to executing its strategic priorities and enhancing operational efficiencies.