- Alcoa (AA, Financial) reported a 171% increase in net income to $548 million for Q1 2025.
- The company faced a $20 million impact from U.S. Section 232 tariffs on Canadian aluminum imports.
- Alcoa maintained a strong cash position of $1.2 billion and restructured its debt with a $1 billion issuance in Australia.
Alcoa Corporation (AA) has released its first quarter 2025 financial results, highlighting a substantial increase in profitability. The company reported a net income of $548 million, or $2.07 per share, which marks a significant 171% increase from the previous quarter. Adjusted net income also saw a 106% rise, reaching $568 million, or $2.15 per share.
Revenue for the quarter amounted to $3.4 billion, despite a slight decline of 3% sequentially. The Adjusted EBITDA grew by 26%, reaching $855 million, underscoring the company's strong operational performance. Alcoa ended the quarter with a robust cash position of $1.2 billion, facilitating key strategic initiatives, including a joint venture with IGNIS Equity Holdings to support operations at the San Ciprián site.
Amidst these positive results, Alcoa managed challenges due to a new 25% tariff on Canadian aluminum imports under U.S. Section 232, resulting in $20 million in costs. The company anticipates these tariffs to have a $90 million adverse impact in Q2 2025.
Alcoa's production for the first quarter saw a minor decline, with alumina production down 1% to 2.35 million metric tons and aluminum production reduced by 1% to 564,000 metric tons. Despite these declines, Alcoa remains confident in its 2025 production guidance and strategic outlook.
In a bid to enhance financial flexibility, Alcoa repositioned its debt with a successful $1 billion issuance in Australia and accepted tenders for $890 million of existing debt. The company's ongoing efforts to mitigate tariff impacts through engagement with policymakers and restructuring debts signal strategic agility against external pressures.
Looking ahead, Alcoa continues to focus on operational excellence and stability, sustained by a favorable aluminum market environment, helping to offset some of the external headwinds it faces.
