Alcoa Corp
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
AA$39.54+2.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061867
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000950170-25-100979
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 231 previous paragraphs and 276 current paragraphs.
104 unchanged; 66 reworded; 97 added; 51 removed; 10 previous and 9 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (97)
Current report
During the second quarter of 2025, Alcoa continued to execute on its strategic priorities while maintaining strong operational performance, which included progressing the sale of the Company’s full ownership interest in the joint venture with Saudi Arabian Mining Company (Ma’aden) and successfully concluding a five-year tax dispute in Australia with a favorable ruling for the Company. Additionally, Alcoa maintained advocacy efforts with policy makers regarding the impacts of U.S. tariffs.
Current report
During the second quarter of 2025, the Company redirected certain Canadian production to customers outside the U.S. to mitigate additional tariff costs. Approximately 30% of the Company’s Canadian aluminum production is available for spot sales, and a portion of this production historically imported into the U.S. can be redirected when economically favorable. Additionally, Alcoa continued to maintain active engagement with administrations, governments, and policy makers, primarily in the U.S. and Canada, regarding the impacts of tariffs.
Current report
Following the formation of the joint venture with IGNIS Equity Holdings, SL (IGNIS EQT) on March 31, 2025 (described below), Alcoa resumed the restart of the San Ciprián smelter that had been operating approximately 6 percent of total pots since March 2024. The restart was paused on April 28, 2025, following a widespread power outage across Spain, until the Spanish government could provide sufficient details on the cause of the power outage and the measures being taken to prevent a reoccurrence. On July 14, 2025, Alcoa and IGNIS EQT announced the restart would resume. The announcement was made after reviewing the Spanish government’s report on the circumstances that caused the power outage, and the planned measures and investments aimed at providing improved grid resilience, and receiving assurances from the Spanish government that it will continue to promote measures to provide reliable and competitive energy. The Company expects that the restart will be completed by mid-2026.
Current report
Saudi Arabia Joint Venture
Current report
On July 1, 2025, Alcoa completed the sale of its full ownership interest of 25.1% in the Saudi Arabia joint venture, comprised of the Ma’aden Bauxite and Alumina Company (MBAC) and the Ma’aden Aluminium Company (MAC), to Ma’aden in exchange for total consideration of $1,350, comprised of 85,977,547 shares of Ma’aden (valued at $1,200 (SAR 4,501) as of closing) and $150 (SAR 562) in cash (to be used primarily for related taxes and transaction costs). The carrying value of Alcoa’s investment was $546 as of June 30, 2025. In the third quarter of 2025, Alcoa will recognize a gain of approximately $780 and subsequent changes in fair value of the shares within Other (income) expenses, net.
Current report
Australia Tax Decision
Current report
In accordance with the ATO’s dispute resolution practices, AofA paid 50% of the assessed income tax amount exclusive of interest and any penalties, or approximately $74 (A$107), during the third quarter 2020. Interest on the unpaid tax was accrued through the decision date, which, along with the initial interest assessment, was deductible against taxable income by AofA. AofA applied this deduction beginning in the third quarter of 2020 through the decision date, resulting in reductions in cash tax payments.
Current report
Australia Mine Plan Approvals
Current report
On May 29, 2025, the Western Australian Environmental Protection Authority (WA EPA) opened a 12-week public comment period on the Company’s two mine plans in Western Australia, which include the plan for the next major mine regions (Myara North and Holyoake) and the rolling five-year mine plans (2022-2027) referred to the WA EPA by a third party in 2023. Following this public consultation period and the Company’s response to any clarifications requested by the WA EPA, the Company expects that the WA EPA will publish its assessment and recommendations. An appeals process of the assessment and recommendations will follow before Ministerial decisions are finalized.
Current report
The Ministerial decisions were expected by the first quarter of 2026 per the indicative timeline the WA EPA set in the third quarter of 2024. From both the Company’s and the WA EPA’s perspective, the indicative timeline is no longer achievable primarily due to the complexity related to advancing both mine approvals, the extensive documentation provided by the Company and independent experts, and the additional work expected in summarizing and responding to submissions received in the public comment period. Following the public consultation, the Company expects that a revised indicative timeline will be published. The Company is committed to continuing to work collaboratively with the WA EPA and other stakeholders to achieve Ministerial decisions as early as possible in 2026. The Company has multiple contingency plans and expects to access bauxite similar to recent grades until the Company can transition to the new mine regions.
Current report
The Company is actively engaged in negotiations related to the following collective bargaining agreements:
Current report
The three collective bargaining agreements with le Syndicat des Métallos (FTQ) representing approximately 1,000 hourly employees at the Bécancour smelter in Québec, Canada that expired on July 19, 2025;
Current report
The collective bargaining agreement with the Australian Workers Union (AWU) representing approximately 400 hourly employees at the Portland, Australia smelter that expired on June 30, 2025. The AWU did not accept the latest offer, proposed by the Company on July 25, 2025, and elected to undertake protected industrial action in the form of a 48-hour work stoppage beginning August 5, 2025. While negotiations continue, the Company has contingency plans to maintain safety and minimize operating disruptions at the Portland smelter if the industrial action were to occur; and,
Current report
The collective bargaining agreement with the Starfsgreinafélag Islands (AFL) and the Rafiðnaðarsamband Íslands (RSÍ) representing approximately 400 hourly employees at the Fjarðaál, Iceland smelter that expired on February 28, 2025.
Current report
Lower alumina and aluminum prices
Current report
Lower taxes on lower earnings
Current report
Higher aluminum and alumina prices
Current report
Lower intersegment profit elimination
Current report
Sales decreased $351 primarily as a result of:
Current report
Higher shipments of aluminum and alumina
Current report
Sales increased $882 primarily as a result of:
Current report
Higher average realized price of alumina and aluminum
Current report
Lower average realized price of alumina and aluminum
Current report
Higher production costs across both segments
Current report
Higher average realized price of alumina and aluminum
Current report
Lower intersegment profit elimination
Current report
Increased fees for professional services
Current report
Unfavorable currency revaluation impacts
Current report
Selling, general administrative, and other expenses increased $24 primarily as a result of:
Current report
Increased fees for professional services
Current report
Increased information technology services
Current report
The Provision depreciation, depletion, and amortization increased $5 primarily as a result of:
Current report
Unfavorable currency impacts
Current report
The Provision for depreciation, depletion, and amortization decreased $23 primarily as a result of:
Current report
Interest expense increased $3 primarily as a result of:
Current report
Interest on unfavorable value added tax assessments in Brazil
Current report
Interest on $500 6.125% Senior Notes and $500 6.375% Senior Notes issued in March 2025
Current report
Interest expense increased $42 primarily as a result of:
Current report
Interest on $500 6.125% Senior Notes and $500 6.375% Senior Notes issued in March 2025
Current report
Interest on unfavorable value added tax assessments in Brazil
Showing the first 40 of 97 passages. Open the source sections for the rest.
Removed paragraphs (51)
Previous report
During the first quarter of 2025, Alcoa continued to execute its key operational and capital allocation objectives, including the formation of the joint venture in Spain with IGNIS Equity Holdings, SL (IGNIS EQT) and repositioning debt in Australia closer to its operating assets, which require considerable capital expenditures to complete mine moves over the next several years. Additionally, the Alumina segment and the Aluminum segment experienced operational stability and strong production results, while the Alumar (Brazil) smelter increased operating capacity to approximately 90% as of March 31, 2025.
Previous report
Portfolio Actions
Previous report
On April 28, 2025, Alcoa’s San Ciprián complex was impacted by the widespread power outage across Spain. As a result of the outage, both the refinery and smelter at the complex were affected. Due to the preliminary nature of the information, Alcoa is unable to reasonably estimate the impact to the Company’s results of operations until a thorough assessment is complete.
Previous report
Favorable currency revaluation impacts
Previous report
Lower restructuring charges
Previous report
Absence of Net loss attributable to noncontrolling interest
Previous report
Sales decreased $117 primarily as a result of:
Previous report
Sales increased $770 primarily as a result of:
Previous report
Selling, general administrative, and other expenses decreased $9 primarily as a result of:
Previous report
Favorable currency revaluation impacts
Previous report
Decreased fees for professional services
Previous report
Lower information technology services
Previous report
Higher labor costs
Previous report
The Provision for depreciation, depletion, and amortization decreased $11 primarily as a result of:
Previous report
The Provision for depreciation, depletion, and amortization decreased $13 primarily as a result of:
Previous report
Interest expense increased $8 primarily as a result of:
Previous report
The absence of interest incurred on the Alumina Limited revolving credit facility through November 29, 2024 when Alcoa repaid outstanding amounts under the facility
Previous report
Interest expense increased $26 primarily as a result of:
Previous report
Decrease in equity losses from the Ma’aden aluminum joint venture primarily due to lower production costs
Previous report
Decrease in equity income from the Ma’aden bauxite and alumina joint venture primarily due to lower alumina prices and higher production costs
Previous report
In the fourth quarter of 2024, Restructuring and other charges, net of $91 primarily related to:
Previous report
$82 for increase in costs related to the curtailment of the Kwinana (Australia) refinery
Previous report
$6 for take-or-pay contract costs at a previously closed site
Previous report
In the first quarter of 2024, Restructuring and other charges, net of $202 primarily related to:
Previous report
Provision for (benefit from) income taxes
Previous report
Net income (loss) attributable to noncontrolling interest was $0 in the first quarter of 2025 and the fourth quarter of 2024.
Previous report
Net income (loss) attributable to noncontrolling interest was $0 in the first quarter of 2025 compared with $(55) in the first quarter of 2024.
Previous report
Net income (loss) attributable to noncontrolling interest of $(55) in the first quarter of 2024 reflects unfavorable restructuring costs and production costs, partially offset by favorable raw material and energy costs.
Previous report
Business Update. The average API of $612 per metric ton decreased 5% compared to the fourth quarter of 2024, when API reached an all-time high driven primarily by supply disruptions. Compared to the first quarter of 2024, average API increased by 72%. The majority of third-party alumina sales are linked to the API and higher prices have resulted in strong results for the segment.
Previous report
Alumina production decreased 1% in comparison to the fourth quarter of 2024.
Previous report
Alumina production decreased 12% primarily as a result of:
Previous report
Third-party sales decreased $132 primarily as a result of:
Previous report
Third-party sales increased $502 primarily as a result of:
Previous report
Intersegment sales
Previous report
Intersegment sales decreased $134 primarily as a result of:
Previous report
Intersegment sales increased $317 primarily as a result of:
Previous report
Lower shipments
Previous report
Lower production costs primarily related to the absence of a write down of certain inventories to their net realizable value
Previous report
Segment Adjusted EBITDA increased $525 primarily as a result of:
Previous report
Higher production costs primarily related to operating certain of the Australia refineries with lower grade bauxite, higher labor costs, and increased maintenance
Showing the first 40 of 51 passages. Open the source sections for the rest.
Reworded paragraphs (66)
Previous wording
During the quarter, the United States government imposed a 25% tariff on certain aluminum imports from Canada under Section 232 of the Trade Expansion Act of 1962 (Section 232), which became effective on March 12, 2025. The Section 232 tariff was previously 10%, and Canadian metal imported into the U.S. was exempted. Approximately 70% of the aluminum Alcoa produces in Canada is shipped to U.S. customers. Throughout the first quarter 2025, Alcoa actively engaged with administrations, governments, and policy makers in the U.S. and globally regarding the impact of tariffs on trade flows and the importance of primary aluminum to the U.S. economy through the deeply integrated aluminum supply chain. Additionally, the Company engaged with customers, suppliers, and logistics companies to avoid supply disruptions.
Current wording
On March 12, 2025, the United States government imposed a 25% tariff on certain aluminum imports from Canada under Section 232 of the Trade Expansion Act of 1962 (Section 232) which increased to a 50% tariff on June 4, 2025. Prior to March 12, 2025, the Section 232 tariff was 10%, and Canadian metal imported into the U.S. was exempted. Historically, approximately 70% of the aluminum Alcoa produced in Canada was shipped to U.S. customers, with the majority associated with annual customer contracts.
Previous wording
Alcoa and IGNIS EQT contributed $81 (€75) and $27 (€25), respectively, to form the joint venture. Additionally, up to approximately $108 (€100) may be funded by Alcoa as needed for operations with a priority position in future cash returns. Further funding requires agreement by both partners and would be shared 75% by Alcoa and 25% by IGNIS EQT.
Current wording
On March 31, 2025, Alcoa and IGNIS EQT entered into a joint venture agreement whereby Alcoa owns 75% and continues as the managing operator and IGNIS EQT owns 25% of the San Ciprián operations. Alcoa and IGNIS EQT contributed $81 (€75) and $27 (€25), respectively, to form the joint venture. Additionally, up to approximately $117 (€100) may be funded by Alcoa as needed for operations with a priority position in future cash returns. Further funding requires agreement by both partners and would be shared 75% by Alcoa and 25% by IGNIS EQT.
Previous wording
The transaction was accounted for as an equity transaction where IGNIS EQT’s noncontrolling interest was reflected as a decrease to Additional capital on the accompanying Consolidated Balance Sheet. Under the terms of the joint venture agreement, IGNIS EQT has a put option whereby IGNIS EQT can require Alcoa Corporation to purchase from IGNIS EQT its 25% interest at the then fair market value upon certain change in control provisions. Alcoa classified the Noncontrolling interest within Mezzanine equity on the Consolidated Balance Sheet, as IGNIS EQT’s redemption is not solely within the Company’s control. Alcoa will recognize earnings attributable to IGNIS EQT’s ownership interest within Noncontrolling interest beginning in the second quarter of 2025.
Current wording
The transaction was accounted for as an equity transaction where IGNIS EQT’s noncontrolling interest was reflected as a decrease to Additional capital on the accompanying Consolidated Balance Sheet. Under the terms of the joint venture agreement, IGNIS EQT has a put option whereby IGNIS EQT can require Alcoa Corporation to purchase from IGNIS EQT its 25% interest at the then fair market value upon certain change in control provisions. Alcoa classified the Noncontrolling interest within Mezzanine equity on the Consolidated Balance Sheet, as IGNIS EQT’s redemption of the put option is not solely within the Company’s control. Net loss attributable to noncontrolling interest was $13 in the second quarter of 2025.
Previous wording
Net income (loss) attributable to Alcoa Corporation was $548 in the first quarter of 2025 compared with $202 in the fourth quarter of 2024. The favorable change of $346 is primarily a result of:
Current wording
Net income (loss) attributable to Alcoa Corporation was $164 in the second quarter of 2025 compared with $548 in the first quarter of 2025. The unfavorable change of $384 is primarily a result of:
Previous wording
Net income (loss) attributable to Alcoa Corporation was $548 in the first quarter of 2025 compared with $(252) in the first quarter of 2024. The favorable change of $800 is primarily a result of:
Current wording
Net income (loss) attributable to Alcoa Corporation was $712 in the six-month period of 2025 compared with $(232) in the six-month period of 2024. The favorable change of $944 is primarily a result of:
Previous wording
Lower average realized price of alumina
Current wording
Lower average realized price of alumina and aluminum
Previous wording
Cost of goods sold as a percentage of sales decreased 20% primarily as a result of:
Current wording
Cost of goods sold as a percentage of sales increased 16% primarily as a result of:
Previous wording
Cost of goods sold as a percentage of sales decreased 5% primarily as a result of:
Current wording
Cost of goods sold as a percentage of sales decreased 10% primarily as a result of:
Previous wording
Lower depreciation in Brazil and Australia for mine reclamation and bauxite residue storage asset retirement obligations
Current wording
Lower depreciation in Brazil for mine reclamation and bauxite residue storage asset retirement obligations
Previous wording
Debt settlement expenses for the Existing 2027 Notes and Existing 2028 Notes extinguished in March 2025
Current wording
Absence of interest and debt settlement expenses for the Existing 2027 Notes and Existing 2028 Notes extinguished in March 2025
Previous wording
Interest incurred on the $750 7.125% Senior Notes issued in March 2024
Current wording
Interest on $750 7.125% Senior Notes issued in March 2024
Previous wording
Other (income) expenses, net was ($26) in the first quarter of 2025 compared with $42 in the fourth quarter of 2024. The favorable change of $68 was primarily a result of:
Current wording
Other (income) expenses, net was ($112) in the second quarter of 2025 compared with ($26) in the first quarter of 2025. The favorable change of $86 was primarily a result of:
Previous wording
Favorable mark-to-market results on derivative instruments primarily due to higher power prices in the current year
Current wording
Favorable mark-to-market results on derivative instruments primarily due to changes in the euro foreign exchange rate and higher power prices in the current quarter
Previous wording
Favorable currency revaluation impacts primarily due to absence of losses recognized in the fourth quarter of 2024 due to the U.S. dollar strengthening against the Brazilian real, partially offset by gains in the current quarter due to the U.S. dollar weakening against the Brazilian real
Current wording
Unfavorable currency revaluation impacts primarily due to absence of gains recognized in the first quarter of 2025 due to the U.S. dollar weakening against the Brazilian real and the Australian dollar, partially offset by gains in the current quarter due to the U.S. dollar weakening against the Brazilian real
Previous wording
Other (income) expenses, net was ($26) in the first quarter of 2025 compared with $59 in the first quarter of 2024. The favorable change of $85 was primarily a result of:
Current wording
Other (income) expenses, net was ($138) in the six-month period of 2025 compared with $37 in the six-month period of 2024. The favorable change of $175 was primarily a result of:
Previous wording
Favorable currency revaluation impacts primarily due to the absence of losses recognized in the prior year due to the U.S. dollar strengthening against the Brazilian real, partially offset by gains in the current year due to the U.S. dollar weakening against the Brazilian real
Current wording
Favorable currency revaluation impacts primarily due to the absence of losses recognized in the prior year due to the U.S. dollar strengthening against the Brazilian real and gains in the current year due to the U.S. dollar weakening against the Brazilian real, partially offset by losses in the current year due to the U.S. dollar weakening against the euro
Previous wording
Unfavorable mark-to-market results on derivative instruments due to lower power prices in the current quarter
Current wording
Favorable mark-to-market results on derivative instruments primarily due to changes in the euro foreign exchange rate partially offset by lower power prices in the current year
Previous wording
Increase in equity income from the Ma’aden bauxite and alumina joint venture primarily due to higher alumina prices and lower production costs
Current wording
Increase in equity income from MBAC primarily due to higher alumina prices, partially offset by lower shipments and higher production costs
Previous wording
Increase in equity losses from the Ma’aden aluminum joint venture primarily due to higher alumina input costs, partially offset by higher aluminum prices
Current wording
Increase in equity losses from MAC primarily due to higher alumina input costs, partially offset by higher aluminum prices
Previous wording
$197 for the curtailment of the Kwinana refinery
Current wording
$205 for the curtailment of the Kwinana alumina refinery
Previous wording
The Provision for income taxes in the first quarter of 2025 was $120 on income before taxes of $668 or 18%. In comparison, the fourth quarter of 2024 Provision for income taxes was $136 on income before taxes of $338 or 40.2%.
Current wording
The Provision for income taxes in the second quarter of 2025 was $10 on income before taxes of $161 or 6.2%. In comparison, the first quarter of 2025 Provision for income taxes was $120 on income before taxes of $668 or 18%.
Previous wording
The decrease in tax expense of $16 is primarily due to the impact of the annualized effective tax rate when applied to current period earnings and decreased income in a jurisdiction where the Company maintains a full tax valuation allowance but is limited in net operating loss usage, partially offset by higher income in certain jurisdictions where taxes are paid.
Current wording
The decrease in tax expense of $110 is primarily due to decreased income in certain jurisdictions where taxes are paid and the impact of the annualized effective tax rate when applied to current period earnings.
Previous wording
The Provision for income taxes in the first quarter of 2025 was $120 on income before taxes of $668 or 18%. In comparison, the first quarter of 2024 Benefit from income taxes was $(18) on a loss before taxes of $(325) or 5.5%.
Current wording
The Provision for income taxes in the six-month period of 2025 was $130 on income before taxes of $829 or 15.7%. In comparison, the six-month period of 2024 Provision for income taxes was $43 on a loss before taxes of $(233) or (18.5)%.
Previous wording
The increase in tax expense of $138 is primarily attributable to higher income in the jurisdictions where taxes are paid.
Current wording
The increase in tax expense of $87 is primarily attributable to higher income in certain jurisdictions where taxes are paid.
Previous wording
Noncontrolling interest previously related to Alumina Limited’s 40% ownership interest in the AWAC joint venture. Upon completion of the acquisition by Alcoa on August 1, 2024, Alumina Limited and, as a result, ownership in the AWAC joint venture, became wholly-owned by Alcoa Corporation.
Current wording
Through August 1, 2024 when Alcoa completed the acquisition of Alumina Limited, Noncontrolling interest related to Alumina Limited’s 40% ownership interest in the AWAC joint venture. Upon completion of the acquisition by Alcoa, Alumina Limited and, as a result, ownership in the AWAC joint venture, became wholly-owned by Alcoa Corporation.
Previous wording
On March 31, 2025, Alcoa and IGNIS EQT entered into a joint venture agreement. Alcoa owns 75% and continues as the managing operator and IGNIS EQT owns 25% of the San Ciprián operations. Alcoa will recognize earnings attributable to IGNIS EQT’s ownership interest within Noncontrolling interest beginning in the second quarter of 2025.
Current wording
On March 31, 2025, Alcoa and IGNIS EQT entered into a joint venture agreement. Alcoa owns 75% and continues as the managing operator and IGNIS EQT owns 25% of the San Ciprián operations. Alcoa began recognizing earnings attributable to IGNIS EQT’s ownership interest within Noncontrolling interest in the second quarter of 2025.
Previous wording
Capacity. The Alumina segment had a base capacity of 13,843 kmt with 3,204 kmt of curtailed refining capacity. There was no change in curtailed capacity during the quarter.
Current wording
Capacity. The Alumina segment had a base capacity of 13,843 kmt with 3,204 kmt of curtailed refining capacity. There was no change in curtailed capacity in 2025.
Previous wording
Lower average realized price of $61/ton principally driven by a lower average API
Current wording
Lower average realized price of $197/ton principally driven by a lower average API
Previous wording
Lower shipments of alumina primarily due to timing of shipments and decreased trading activity
Current wording
Higher shipments of alumina primarily due to timing of shipments and increased trading activity, partially offset by lower sales of externally sourced alumina to satisfy certain customer commitments
Previous wording
Higher average realized price of $203/ton principally driven by a higher average API
Current wording
Higher average realized price of $90/ton principally driven by a higher average API
Previous wording
Lower shipments of alumina primarily due to the full curtailment of the Kwinana refinery, timing of shipments, and decreased trading activity, partially offset by increased sales of externally sourced alumina to satisfy certain customer contracts
Current wording
Lower shipments of alumina primarily due to the full curtailment of the Kwinana refinery and decreased trading activity, partially offset by higher sales of externally sourced alumina to satisfy certain customer commitments
Previous wording
Higher alumina shipments primarily due to the Alumar smelter and Warrick (Indiana) smelter restarts
Current wording
Higher alumina shipments primarily due to timing of shipments and the Alumar (Brazil) smelter restart
Previous wording
Forward Look. For the second quarter of 2025 in comparison to the first quarter of 2025, the Alumina segment expects to maintain the strong operational performance delivered in the first quarter of 2025, with the benefit from higher shipments offsetting higher production costs.
Current wording
Forward Look. For the third quarter of 2025 in comparison to the second quarter of 2025, the Alumina segment expects lower production costs, primarily due to decreased maintenance costs.
Previous wording
Alcoa expects total 2025 Alumina segment production and shipments to remain unchanged from its prior projection, ranging between 9.5 to 9.7 million metric tons, and between 13.1 and 13.3 million metric tons, respectively. The difference between production and shipments reflects trading volumes and externally sourced alumina to fulfill customer contracts due to the curtailment of the Kwinana refinery.
Current wording
Alcoa expects 2025 total Alumina segment production and shipments to remain unchanged from its prior projection, ranging between 9.5 to 9.7 million metric tons, and between 13.1 and 13.3 million metric tons, respectively. The difference between production and shipments reflects trading volumes and externally sourced alumina to fulfill customer contracts due to the curtailment of the Kwinana refinery.
Previous wording
Business Update. Aluminum prices increased sequentially with LME prices on a 15-day lag averaging $2,607 per metric ton in the first quarter of 2025. In the first quarter of 2025, the average Midwest premium (United States and Canada) increased by 57% sequentially following the introduction of 25% tariffs on aluminum imports from Canada, which became effective on March 12, 2025.
Current wording
Business Update. Aluminum prices decreased sequentially with LME prices on a 15-day lag averaging $2,458 per metric ton in the second quarter of 2025. Additionally, the average Midwest premium (United States and Canada) increased 36% sequentially following the increase on U.S. Section 232 tariff on aluminum imports from Canada from 25% to 50% on June 4, 2025.
Previous wording
Tariffs on imports of aluminum from Canada
Current wording
In the second quarter of 2025, Alcoa incurred approximately $115 for tariff costs on imports of aluminum to the U.S. from Canada, a sequential increase of approximately $95.
Previous wording
On March 31, 2025, Alcoa and IGNIS EQT entered into a joint venture agreement, which includes the San Ciprián smelter (see Portfolio actions above). The joint venture agreement allows for the planned restart of the San Ciprián smelter in 2025, a commitment included in the viability agreement reached with the workers’ representatives of the San Ciprián smelter in December 2021, and subsequently updated in February 2023. In connection with terms of the updated viability agreement, the Company has restricted cash of $75 remaining at March 31, 2025, to be made available for capital improvements at the site and smelter restart costs. In the first quarter of 2025, $11 was released from restricted cash related to smelter restart and capital expenditures incurred in the fourth quarter of 2024 and first quarter of 2025.
Current wording
In connection with terms of the updated viability agreement, the Company had restricted cash of $75 remaining at June 30, 2025, to be made available for capital improvements at the site and smelter restart costs. In the first quarter of 2025, $11 was released from restricted cash related to smelter restart and capital expenditures incurred in the fourth quarter of 2024 and first quarter of 2025.
Previous wording
In the third quarter of 2024, Alcoa entered into a share purchase and subscription agreement with Ma’aden, pursuant to which Alcoa agreed to sell its full ownership interest of 25.1% in the Saudi Arabia joint venture to Ma’aden in exchange for issuance by Ma’aden of approximately 86 million shares and $150 in cash. In accordance with the announced transaction, the metal offtake agreement with Ma’aden was terminated in the first quarter of 2025.
Current wording
On July 1, 2025, Alcoa completed the sale of its full ownership interest of 25.1% in the Saudi Arabia joint venture, which includes the Ma’aden Aluminium Company (see Portfolio actions above). In accordance with the transaction, the metal offtake agreement with Ma’aden was terminated in the first quarter of 2025.
Previous wording
Duringthe first quarter of 2025, the Company maintained the controlled pace for the restart of the Alumar smelter and continued actions to improve the smelter’s overall performance. The site was operating at approximately 90% of the site’s total annual capacity of 268 kmt (Alcoa share) as of March 31, 2025.
Current wording
During the first and second quarters of 2025, the Company progressed the restart of the Alumar smelter. The site was operating at approximately 91% of the site’s total annual capacity of 268 kmt (Alcoa share) as of June 30, 2025.
Previous wording
In the table below, total aluminum third-party shipments include metric tons that were not produced by the Aluminum segment. Such aluminum was purchased by this segment to satisfy certain customer commitments. The Aluminum segment bears the risk of loss of the purchased aluminum until control of the product has been transferred to this segment’s customer. Additionally, Total shipments include offtake from a joint venture supply agreement.
Current wording
In the table below, total aluminum third-party shipments include metric tons that were not produced by the Aluminum segment. Such aluminum was purchased by this segment to satisfy certain customer commitments. The Aluminum segment bears the risk of loss of the purchased aluminum until control of the product has been transferred to this segment’s customers. Additionally, Total shipments include offtake from a joint venture supply agreement.
Showing the first 40 of 66 pairs. Open the source sections for the rest.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
On April 30, 2025, the Administrative Review Tribunal of Australia (ART) issued its decision related to the proceedings Alcoa of Australia Limited (AofA) filed against the Australian Taxation Office (ATO) in April 2022 to contest the Notices of Assessment issued by the ATO in July 2020 related to transfer pricing of certain historic third-party alumina sales. The ART decided that no additional tax is owed, consistent with Alcoa’s long-held position related to this matter.
Current report — wording carried from elsewhere
The ATO did not appeal the ART’s decision, and the disputed tax claims (and additional related interest and penalties) have been withdrawn. With the withdrawal of the ATO’s claims, the prepaid tax asset and related interest of $78 (A$120) were refunded to AofA in July 2025, and accrued cash taxes of $225 (A$346) related to the interest deductions are payable by AofA by June 1, 2026. The net cash impact of both the refunded amount and the accrued cash taxes is approximately $147 (A$226) through June 2026.
Current report — wording carried from elsewhere
Favorable mark-to-market results on derivative instruments
Current report — wording carried from elsewhere
Favorable mark-to-market results on derivative instruments
Current report — wording carried from elsewhere
Lower shipments of alumina and aluminum
Current report — wording carried from elsewhere
Lower average alumina input costs in the Aluminum segment
Current report — wording carried from elsewhere
Higher average alumina input costs in the Aluminum segment
Current report — wording carried from elsewhere
On March 31, 2025, Alcoa and IGNIS EQT entered into a joint venture agreement, which includes the San Ciprián smelter (see Portfolio actions above). The joint venture agreement allows for the planned restart of the San Ciprián smelter in 2025, a commitment included in the viability agreement reached with the workers’ representatives of the San Ciprián smelter in December 2021, and subsequently updated in February 2023.
Current report — wording carried from elsewhere
On April 30, 2025, the ART issued its decision related to the proceedings AofA filed against the ATO in April 2022 to contest the Notices of Assessment issued by the ATO in July 2020 related to transfer pricing of certain historic third-party alumina sales. The ART decided that no additional tax is owed, consistent with Alcoa’s long-held position related to this matter.
Rearranged previous paragraphs (10)
Previous report — wording carried elsewhere
On March 31, 2025, Alcoa and IGNIS EQT entered into a joint venture agreement whereby Alcoa owns 75% and continues as the managing operator and IGNIS EQT owns 25% of the San Ciprián operations.
Previous report — wording carried elsewhere
Lower average realized price of alumina
Previous report — wording carried elsewhere
Lower production costs in the Aluminum segment
Previous report — wording carried elsewhere
Debt settlement expenses for the Existing 2027 Notes and Existing 2028 Notes extinguished in March 2025
Previous report — wording carried elsewhere
Absence of costs related to site separation commitments associated with the Warrick Rolling Mill sale
Previous report — wording carried elsewhere
In the first quarter of 2025, Restructuring and other charges, net of $5 primarily related to:
Previous report — wording carried elsewhere
$3 for certain employee obligations related to the February 2023 updated viability agreement for the San Ciprián aluminum smelter
Previous report — wording carried elsewhere
$2 for take-or-pay contract costs at a previously closed site
Previous report — wording carried elsewhere
Lower alumina shipments primarily due to timing of shipments
Previous report — wording carried elsewhere
Lower shipments primarily due to the absence of volumes from a joint venture supply agreement and the timing of shipments