Alcoa Corporation Reports Fourth Quarter and Full Year 2025 Results

Alcoa Corporation (NYSE:AA, ASX: AAI)) (Alcoa or the Company) today reported fourth quarter and full year 2025 results that reflect continued strength in aluminum pricing and operational performance.

Financial Results and Highlights

Fourth Quarter 2025

• Revenue increased to $3.4 billion, a 15 percent increase sequentially
• Recorded net income of $226 million, or $0.85 per common share
• Adjusted net income increased to $335 million, or $1.26 per common share
• Adjusted EBITDA excluding special items increased $276 million sequentially to $546 million
• Generated $537 million in cash from operations, a sequential improvement of $452 million
• Finished the fourth quarter 2025 with a cash balance of $1.6 billion, including redemption of the remaining $141 million of outstanding 5.5% Senior Notes due 2027 (2027 Notes)

Full Year 2025

• Revenue increased to $12.8 billion, an 8 percent increase
• Net income increased to $1.2 billion, or $4.42 per common share
• Adjusted net income increased to $1.0 billion, or $3.77 per common share
• Adjusted EBITDA excluding special items increased to $2.0 billion
• Generated $1.2 billion in cash from operations, an increase of $563 million
• Reduced total debt to $2.4 billion; reduced adjusted net debt to $1.5 billion
• Set annual production records at five aluminum smelters and at one alumina refinery
• Completed strategic initiatives, including:
  • Closed the sale of interest in the joint venture with Saudi Arabian Mining Company (Ma'aden)
  • Received favorable decision in Australian tax dispute
  • Formed joint venture with IGNIS Equity Holdings, SL to support the continued operation of the San Ciprián complex in Spain
  • Announced permanent closure of the Kwinana refinery in Australia

"Reflecting on 2025, we maintained our pace of delivering on key operational, strategic, and capital allocation objectives, while setting numerous production records," said Alcoa President and CEO William F. Oplinger. "We continue to build on our positive momentum through disciplined operational and financial execution, along with strategic initiatives to maximize value creation."

Fourth Quarter 2025 Results

• Production: Alumina production increased 1 percent sequentially to 2.48 million metric tons primarily related to higher output at the Australian refineries. In the Aluminum segment, production increased 4 percent sequentially to 604,000 metric tons primarily due to progress on the San Ciprián, Spain smelter restart.
• Shipments: In the Alumina segment, third-party shipments of alumina increased 5 percent sequentially primarily due to higher sales of externally sourced alumina to fulfill customer commitments and increased production. In Aluminum, total shipments increased 9 percent sequentially primarily due to increased production and timing of shipments.
• Revenue: The Company's total third-party revenue of $3.4 billion increased 15 percent sequentially. In the Alumina segment, third-party revenue increased 3 percent on higher volumes from bauxite offtake and supply agreements and higher alumina shipments, partially offset by a decrease in average realized third-party price of alumina. In the Aluminum segment, third-party revenue increased 21 percent on an increase in average realized third-party price and higher shipments.
• Net income attributable to Alcoa Corporation was $226 million, or $0.85 per common share. Sequentially, the results reflect:
  • Unfavorable mark-to-market change on the Ma'aden shares of $337 million;
  • Impairment charge of $144 million on goodwill primarily associated with a 1994 acquisition in the Alumina segment;
  • Unfavorable currency impacts;
    
    Partially offset by:
  • Increased aluminum prices which more than offset increased tariff costs on U.S. imports of aluminum from Canada;
  • Non-recurrence of items recorded in the third quarter of 2025, including charges for the closure of the Kwinana refinery of $895 million, the gain on the sale of interest in the Ma'aden joint venture of $786 million, and charges to increase asset retirement obligations;
  • Favorable tax impacts, primarily related to a benefit from the valuation allowance reversal on deferred tax assets of Alcoa World Alumina Brasil Ltda. (AWAB) of $133 million;
  • Carbon dioxide compensation in Spain of $32 million and in Norway of $25 million recognized in Cost of goods sold and Research and development expenses, respectively; and,
  • Correction to interest expense of $23 million to capitalize interest on certain prior period capital expenditures.
    
    
• Adjusted net income was $335 million, or $1.26 per common share, excluding the impact from net special items of $109 million. Notable special items include a goodwill impairment charge of $144 million, a mark-to-market loss of $70 million on the Ma'aden shares, partially offset by a tax benefit of $133 million from a valuation allowance reversal on deferred tax assets of AWAB.
• Adjusted EBITDA excluding special items was $546 million, a sequential increase of $276 million primarily due to higher aluminum prices, the recognition of carbon dioxide compensation in Spain and Norway, and the non-recurrence of charges to increase asset retirement obligations recorded in the third quarter 2025, partially offset by increased tariff costs on imported aluminum.
• Cash: Alcoa ended the quarter with a cash balance of $1.6 billion. Cash provided from operations was $537 million. Cash used for financing activities was $166 million, primarily related to the redemption of outstanding 2027 Notes of $141 million and cash dividends on stock of $26 million. Cash used for investing activities was $251 million, primarily related to capital expenditures of $243 million. Free cash flow was $294 million.
• Working capital: For the fourth quarter, Receivables from customers of $1.1 billion, Inventories of $2.2 billion and Accounts payable, trade of $1.9 billion comprised DWC working capital. Alcoa reported 35 days working capital, a sequential decrease of 15 days primarily due to a decrease in inventory days and accounts receivable days, both on higher sales.

Full Year 2025 Results

• Production: Alumina production decreased 4 percent annually primarily due to the full curtailment of the Kwinana refinery completed in June 2024. Aluminum production increased 5 percent annually primarily due to the restart of capacity at the Alumar (Brazil), San Ciprián (Spain), and Lista (Norway) smelters.
• Shipments: In the Alumina segment, third-party shipments of alumina decreased 2 percent annually primarily due to decreased trading activity and lower production, partially offset by higher sales of externally sourced alumina to fulfill customer commitments. In Aluminum, total shipments decreased 3 percent annually primarily due to the absence of Ma'aden offtake volumes, partially offset by increased production.
• Revenue: The Company's total third-party revenue increased 8 percent to $12.8 billion, driven primarily by higher average realized third-party price of aluminum and higher volumes and price from bauxite offtake and supply agreements, partially offset by lower average realized third-party price of alumina and lower aluminum shipments.
• Net income attributable to Alcoa Corporation was $1.2 billion, or $4.42 per common share, compared with prior year net income of $60 million, or $0.26 per common share. The results reflect higher aluminum prices, a gain on the sale of interest in the Ma'aden joint venture, favorable tax impacts (see below), a favorable mark-to-market change on the Ma'aden shares, higher volumes and price from bauxite offtake and supply agreements, and favorable currency impacts, partially offset by increased restructuring charges (see below), increased tariff costs on imported aluminum, lower alumina prices, and a goodwill impairment charge.
• Adjusted net income was $1.0 billion, or $3.77 per common share, excluding the impact from net special items of $170 million. Notable special items include the gain of $786 million on the sale of interest in the Ma'aden joint venture, a net tax benefit of $277 million primarily related to the net tax benefit of special items and the reversal of the AWAB tax valuation allowance, and a favorable mark-to-market change of $197 million on the Ma'aden shares, partially offset by restructuring and related charges of $895 million for the closure of the Kwinana refinery and an impairment charge of $144 million on goodwill primarily associated with a 1994 acquisition in the Alumina segment.
• Adjusted EBITDA excluding special items increased 25 percent to $2.0 billion, mainly attributable to year-over-year higher aluminum prices and higher volumes and price from bauxite offtake and supply agreements, partially offset by increased tariff costs on imported aluminum and lower alumina prices.
• Cash: Alcoa ended 2025 with a cash balance of $1.6 billion. Cash provided from operations was $1.2 billion. Cash used for financing activities was $261 million, primarily related to net payments on debt of $164 million and cash dividends on stock of $105 million. Cash used for investing activities was $502 million, primarily due to capital expenditures of $618 million and contributions to the ELYSIS^® partnership of $59 million, partially offset by cash received from the sale of interest in the Ma'aden joint venture of $150 million (related to taxes and transaction costs). Free cash flow was $567 million.
• Working capital: The Company reported 35 days working capital, a year-over-year increase of 1 day.

Fourth Quarter 2025 Key Actions

• Notes redemption: On December 15, 2025, the Company redeemed the remaining $141 million aggregate principal amount of its outstanding 5.5% notes due in 2027 at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. The redemption was funded using cash on hand.
• ELYSIS commercial size cell: On November 13, 2025, ELYSIS successfully started the first 450 kiloampere (kA) inert anode cell at Rio Tinto's Alma smelter in Québec, Canada. This represents a key milestone for large-scale commercialization of the technology.
• Australia mine approvals: In January 2026, after completing a comprehensive review of the comments received, the Company submitted to the Western Australia Environmental Protection Authority (WA EPA) responses to comments received from government entities during a 12-week public comment period for the Company's mining activities in Australia. These activities include the mine plan for the next major mine regions (Myara North and Holyoake) and the rolling five-year mine plan (2023-2027) referred to the WA EPA in 2023 by a third party. The Company is committed to continuing to work collaboratively with stakeholders to achieve Ministerial decisions by the end of 2026.

2026 Outlook

The Company does not provide reconciliations of the forward-looking non-GAAP financial measures Adjusted EBITDA and Adjusted Net Income, including transformation, intersegment eliminations and other corporate Adjusted EBITDA; operational tax expense; and other expense; each excluding special items, to the most directly comparable forward-looking GAAP financial measures because it is impractical to forecast certain special items, such as restructuring charges and mark-to-market contracts, without unreasonable efforts due to the variability and complexity associated with predicting the occurrence and financial impact of such special items. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Alcoa expects 2026 total Alumina segment production to range between 9.7 and 9.9 million metric tons, an increase from 2025 due to productivity improvements. In 2026, alumina shipments are expected to be between 11.8 and 12.0 million metric tons. The difference between production and shipments, which decreased from 2025, reflects trading volumes and externally sourced alumina to fulfill customer contracts.

Alcoa expects 2026 total Aluminum segment production to range between 2.4 and 2.6 million metric tons, an increase from 2025 due to smelter restarts. In 2026, aluminum shipments are expected to range between 2.6 and 2.8 million metric tons.

Within the first quarter 2026 Alumina Segment Adjusted EBITDA, the Company expects sequential unfavorable impacts of $30 million due to the typical first quarter impacts from the beginning of maintenance cycles and lower alumina shipments, as well as lower price and volume from bauxite offtake and supply agreements.

For the first quarter 2026 Aluminum Segment Adjusted EBITDA, Alcoa expects sequential unfavorable impacts of $70 million due to the absence of Spain and Norway carbon dioxide compensation recognized in the fourth quarter 2025 and higher production costs associated with the restart of the San Ciprián smelter.

Based on current alumina and aluminum market conditions, Alcoa expects first quarter 2026 operational tax expense to approximate $65 million to $75 million, which may vary with market conditions and jurisdictional profitability.

Conference Call

Alcoa will hold its quarterly conference call at 5:00 p.m. Eastern Standard Time (EST) / 9:00 a.m. Australian Eastern Daylight Time (AEDT) on Thursday, January 22, 2026 / Friday, January 23, 2026, to present fourth quarter and full year 2025 financial results and discuss the business, developments, and market conditions.

The call will be webcast via the Company's homepage on www.alcoa.com. Presentation materials for the call will be available for viewing on the same website at approximately 4:15 p.m. EST on January 22, 2026 / 8:15 a.m. AEDT on January 23, 2026. Call information and related details are available under the "Investors" section of www.alcoa.com.

Dissemination of Company Information

Alcoa intends to make future announcements regarding company developments and financial performance through its website, www.alcoa.com, as well as through press releases, filings with the Securities and Exchange Commission, conference calls, media broadcasts, and webcasts. Alcoa does not incorporate the information contained on, or accessible through, its corporate website or such other websites or platforms referenced herein into this press release.

About Alcoa Corporation

Alcoa (NYSE:AA, ASX: AAI)) is a global industry leader in bauxite, alumina and aluminum products with a vision to build a legacy of excellence for future generations. With a values-based approach that encompasses integrity, operating excellence, care for people, and courageous leadership, our purpose is to Turn Raw Potential into Real Progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability, and stronger communities wherever we operate.

Discover more by visiting www.alcoa.com. Follow us on our social media channels: Facebook, Instagram, X, YouTube and LinkedIn.

Cautionary Statement on Forward-Looking Statements

This press release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "aims," "ambition," "anticipates," "believes," "could," "develop," "endeavors," "estimates," "expects," "forecasts," "goal," "intends," "may," "outlook," "potential," "plans," "projects," "reach," "seeks," "sees," "should," "strive," "targets," "will," "working," "would," or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements regarding forecasts concerning global demand growth for bauxite, alumina, and aluminum, and supply/demand balances; statements, projections or forecasts of future or targeted financial results, or operating performance (including our ability to execute on strategies related to environmental, social and governance matters); statements about strategies, outlook, and business and financial prospects; and statements about capital allocation and return of capital. These statements reflect beliefs and assumptions that are based on Alcoa Corporation's perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but are not limited to: (a) the impact of global economic conditions on the aluminum industry and aluminum end-use markets; (b) volatility and declines in aluminum and alumina demand and pricing, including global, regional, and product-specific prices, or significant changes in production costs which are linked to London Metal Exchange (LME) or other commodities; (c) the disruption of market-driven balancing of global aluminum supply and demand by non-market forces; (d) competitive and complex conditions in global markets; (e) our ability to obtain, maintain, or renew permits or approvals necessary for our mining operations; (f) rising energy costs and interruptions or uncertainty in energy supplies; (g) unfavorable changes in the cost, quality, or availability of raw materials or other key inputs, or by disruptions in the supply chain; (h) economic, political, and social conditions, including the impact of trade policies, tariffs, and adverse industry publicity; (i) legal proceedings, investigations, or changes in foreign and/or U.S. federal, state, or local laws, regulations, or policies; (j) changes in tax laws or exposure to additional tax liabilities; (k) climate change, climate change legislation or regulations, and efforts to reduce emissions and build operational resilience to extreme weather conditions; (l) disruptions in the global economy caused by ongoing regional conflicts; (m) fluctuations in foreign currency exchange rates and interest rates, inflation and other economic factors in the countries in which we operate; (n) global competition within and beyond the aluminum industry; (o) our ability to achieve our strategies or expectations relating to environmental, social, and governance considerations; (p) claims, costs, and liabilities related to health, safety and environmental laws, regulations, and other requirements in the jurisdictions in which we operate; (q) liabilities resulting from impoundment structures, which could impact the environment or cause exposure to hazardous substances or other damage; (r) dilution of the ownership position of the Company's stockholders, price volatility, and other impacts on the price of Alcoa common stock by the secondary listing of the Alcoa common stock on the Australian Securities Exchange; (s) our ability to obtain or maintain adequate insurance coverage; (t) our ability to execute on our strategy to reduce complexity and optimize our asset portfolio and to realize the anticipated benefits from announced plans, programs, initiatives relating to our portfolio, capital investments, and developing technologies; (u) our ability to integrate and achieve intended results from joint ventures, other strategic alliances, and strategic business transactions; (v) our ability to fund capital expenditures; (w) deterioration in our credit profile or increases in interest rates; (x) impacts on our current and future operations due to our indebtedness; (y) our ability to continue to return capital to our stockholders through the payment of cash dividends and/or the repurchase of our common stock; (z) cyber attacks, security breaches, system failures, software or application vulnerabilities, or other cyber incidents; (aa) labor market conditions, union disputes and other employee relations issues; (bb) a decline in the liability discount rate or lower-than-expected investment returns on pension assets; and (cc) the other risk factors discussed in Alcoa's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other reports filed by Alcoa with the SEC. Alcoa cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Neither Alcoa nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements.

Non-GAAP Financial Measures

This press release contains reference to certain financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Alcoa Corporation believes that the presentation of these non-GAAP financial measures is useful to investors because such measures provide both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations by adjusting the most directly comparable GAAP financial measure for the impact of, among others, "special items" as defined by the Company, non-cash items in nature, and/or nonoperating expense or income items. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Certain definitions, reconciliations to the most directly comparable GAAP financial measures and additional details regarding management's rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.