Alcoa (AA) Reports Strong Q1 2025 Despite Tariff Challenges

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Apr 17, 2025
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Summary Points:

  • Alcoa Corporation (AA, Financial) reports Q1 2025 revenue of $3.4 billion, a slight decrease from the prior quarter.
  • Despite revenue dip, adjusted EBITDA saw significant growth due to rising aluminum prices.
  • Analysts' average price target suggests a potential 54.70% upside from the current stock price.

Alcoa Corporation Q1 2025 Financial Overview

Alcoa Corporation (AA) recently announced its financial results for the first quarter of 2025, reporting a revenue of $3.4 billion. This marks a 3% decline from the last quarter. However, the company experienced a substantial rise in adjusted EBITDA, which climbed to $855 million, thanks to an uptick in aluminum prices. Despite these gains, Alcoa is confronting a $105 million impact from tariffs and is preparing for potential adversities in the second quarter.

Wall Street Analysts' Projections

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The one-year price targets from 9 analysts present an intriguing outlook for Alcoa Corp (AA, Financial). The average target price is set at $38.78, with projections ranging from a high of $49.00 to a low of $26.00. This average target implies a robust potential upside of 54.70% from the current trading price of $25.07. Investors looking for more detailed estimates can visit the Alcoa Corp (AA) Forecast page.

Brokerage Recommendations and GF Value

The consensus from 12 brokerage firms currently positions Alcoa Corp's (AA, Financial) average brokerage recommendation at 2.3, suggesting an "Outperform" rating. This recommendation scale ranges from a strong buy at 1 to a sell at 5, providing a clear view of Alcoa's favorable standing among analysts.

According to GuruFocus' proprietary estimates, the expected GF Value for Alcoa Corp (AA, Financial) in the upcoming year is $30.17. This suggests a potential upside of 20.34% from the current stock price of $25.07. The GF Value is an intrinsic value estimate that considers historical trading multiples and future business performance forecasts. For an in-depth evaluation, visit the Alcoa Corp (AA) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.