Alcoa Corporation's Net Income Soars 720% in Q2 2025

Alcoa Corporation (NYSE: AA) reported its Q2 2025 results, revealing a mixed financial performance. The company's revenue for the quarter stood at $3,018 million, marking a decrease of -12.11% compared to $3,433 million in Q2 2024. Net income attributable to Alcoa Corporation reached $164 million, a significant increase of 720.00% from $20 million in Q2 2024.

Operational Performance and Strategic Actions

Alcoa sustained strong operational performance, notably in aluminum production. The company progressed with the sale of its 25.1% ownership interest in the joint venture with Saudi Arabian Mining Company (Ma’aden), which officially closed on July 1, 2025. This strategic move is expected to result in a gain of approximately $780 million in Q3 2025.

Key actions taken during the quarter include a favorable decision on an Australian tax dispute, which resulted in a refund of $69 million with $9 million of accrued interest in July 2025. The company also redirected Canadian-produced aluminum to customers outside the U.S. to mitigate additional tariff costs, while actively engaging with policymakers regarding tariff impacts.

Segment Performance and Outlook

In Q2 2025, Alumina production remained flat sequentially at 2.4 million metric tons, and third-party shipments increased by 4%. In contrast, the Alumina segment's third-party revenue decreased by 28% due to lower average realized third-party prices. The Aluminum segment saw a 3% increase in third-party revenue, driven by increased shipments and favorable currency impacts, despite lower average realized third-party prices.

The restart of the San Ciprian smelter was paused in April 2025 but is expected to resume, with completion anticipated by mid-2026. This delay is projected to result in a net loss for the smelter of approximately $90 million to $110 million in 2025. For Q3 2025, Alcoa anticipates sequential favorable impacts of approximately $20 million in the Alumina segment due to lower maintenance costs and efficiencies, while the Aluminum segment expects unfavorable impacts of approximately $90 million due to U.S. Section 232 tariffs on Canadian aluminum imports.