Alcoa

AA Q2 2025 Earnings

Reported Jul 16, 2025 at 4:12 PM ET · SEC Source

Q2 25 EPS

$0.39

MISS 23.72%

Est. $0.51

Q2 25 Revenue

$3.02B

BEAT +1.89%

Est. $2.96B

vs S&P Since Q2 25

+105.3%

BEATING MARKET

AA +120.0% vs S&P +14.7%

Market Reaction

Did AA Beat Earnings? Q2 2025 Results

Alcoa delivered a mixed second quarter for 2025, falling short on the bottom line while edging past revenue expectations as tariff costs took a heavy toll on profitability. Adjusted EPS came in at $0.39, missing the $0.51 consensus estimate by 23.72%… Read more Alcoa delivered a mixed second quarter for 2025, falling short on the bottom line while edging past revenue expectations as tariff costs took a heavy toll on profitability. Adjusted EPS came in at $0.39, missing the $0.51 consensus estimate by 23.72%, even as revenue of $3.02 billion topped forecasts by 1.89% and climbed 6.6% year over year. The primary culprit was $115 million in additional costs tied to U.S. Section 232 tariffs on Canadian aluminum imports, a burden that helped drag adjusted EBITDA down by $542 million sequentially to $313 million. Alcoa partially offset the damage by redirecting Canadian smelter output to international customers, and strong operating cash flow of $488 million offered a measure of reassurance. Looking ahead, the company flagged an estimated $90 million sequential tariff headwind in Q3, though a roughly $100 million favorable alumina cost impact and an expected $780 million gain from the completed Ma'aden joint venture sale should provide meaningful offsets.

Key Takeaways

  • Lower alumina and aluminum prices reduced revenue and profitability sequentially
  • U.S. Section 232 tariffs on Canadian aluminum imports cost approximately $115 million in Q2
  • Aluminum production increased 1% sequentially to 572,000 metric tons due to Alumar Brazil smelter restart progress
  • Alumina third-party shipments increased 4% sequentially due to timing and increased trading
  • Strong cash generation with $488 million operating cash flow, a $413 million sequential improvement
  • Midwest premium increases were more than offset by lower LME prices on aluminum
24/7 Wall St

AA YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

AA Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“In the second quarter of 2025, we continued our relentless execution on key objectives, which included progressing the sale of our interest in the joint venture with Ma'aden.”

— William F. Oplinger, Q2 2025 Earnings Press Release