Alcoa (AA, Financial), the largest aluminum producer in the U.S., reported its 2025 Q2 results, showcasing resilience amidst declining alumina and aluminum prices and rising tariff costs. The company's revenue increased by 4% to $3.018 billion, surpassing expectations of $2.95 billion. Net income rose to $164 million from $20 million a year earlier, with adjusted net income at $103 million, up from $30 million. Adjusted earnings per share were $0.39, matching market forecasts. Adjusted EBITDA slightly decreased to $313 million from $325 million last year.
Alcoa maintained strong aluminum production in Q2 and completed the sale of its 25.1% stake in a joint venture with Saudi Arabian Mining Company (Ma’aden) on July 1, 2025. The company also received a favorable ruling in an Australian tax dispute. Operating cash flow reached $488 million, with an ending cash balance of $1.5 billion. Key actions included pausing the San Ciprián smelter restart in Spain due to a power outage, pending government assurances.
The company faced increased costs of $115 million due to tariffs on Canadian aluminum imports, highlighting the impact of U.S. trade policies. To mitigate these costs, Alcoa redirected Canadian aluminum to non-U.S. customers. The tariff-related loss was nearly six times the $20 million loss in Q1. CEO William F. Oplinger emphasized ongoing communication with U.S. and Canadian governments to address these issues.
Looking ahead, Alcoa expects alumina production and shipments to align with previous forecasts, though aluminum shipments may decline due to the delayed San Ciprián restart. Adjusted alumina EBITDA is expected to improve, while aluminum EBITDA may worsen due to tariffs.
