Alcoa (AA, Financial) has released its Q1 2025 financial results, reporting revenue of $3.37 billion, a 29.6% increase year-over-year, though falling short of market expectations. The company achieved a net profit of $548 million, a significant turnaround from a $252 million loss in the same quarter last year. Non-GAAP earnings per share stood at $2.15, surpassing estimates by $0.81.
Alcoa disclosed a $20 million loss since the imposition of a 25% tariff on metal imports by the U.S. government. The company incurs costs from importing aluminum from Canada, its largest metal supplier. This highlights the adverse effects of trade policies on U.S. businesses.
In Q1, Alcoa's alumina production decreased by 1% quarter-over-quarter to 2.35 million tons, and aluminum production also dropped 1% to 564,000 tons due to two fewer production days. Alumina shipments to third parties fell 8% due to reduced shipping schedules and volumes, while total aluminum shipments declined 5% due to the absence of Ma'aden's purchase volume and shipping schedules.
For 2025, Alcoa expects alumina production and shipments to remain between 9.5 to 9.7 million tons and 13.1 to 13.3 million tons, respectively. Aluminum production and shipments are forecasted to stay between 2.3 to 2.5 million tons and 2.6 to 2.8 million tons. In Q2 2025, tariffs on Canadian aluminum imports are expected to have a $90 million negative impact.
