Alcoa Posts Strong Q1 2025 Results; Net Income Hits $548M

PITTSBURGH – Alcoa Corporation reported first-quarter 2025 net income of $548 million ($2.07/share), up 171% from Q4 2024, driven by higher aluminum prices and improved cost controls.

Adjusted net income rose to $568 million ($2.15/share), while Adjusted EBITDA excluding special items climbed 26% to $855 million. Revenue declined slightly to $3.37 billion.

The company finalized a joint venture with IGNIS to support its San Ciprián operations and repositioned $1 billion in debt. Alcoa ended the quarter with $1.2 billion in cash and $1.49 billion in net debt.

Looking ahead, Alcoa reaffirmed full-year aluminum and alumina production targets and warned of a $90 million Q2 impact from new U.S. tariffs on Canadian aluminum.

Alcoa Corporation has announced the expiration and final results of its previously disclosed cash tender offer for all outstanding 5.500% senior unsecured notes due 2027, issued by Alcoa Nederland Holding B.V. (ANHBV) and fully guaranteed by Alcoa. Additionally, the company has provided an update on the early results of its tender offer for outstanding 6.125% senior unsecured notes due 2028, also issued by ANHBV, with a total purchase limit of $250 million.

Alcoa Corporation filed a Form 8-K on March 3, 2025, announcing a proposed $1 billion senior notes offering by its wholly-owned subsidiary, Alumina Pty Ltd. Additionally, its subsidiary Alcoa Nederland Holding B.V. (ANHBV) has launched cash tender offers to repurchase up to $750 million of its 5.500% Notes due 2027 and up to $250 million of its 6.125% Notes due 2028. The senior notes offering is not contingent on the tender offers.

The company also disclosed that, following its acquisition of Alumina Limited on August 1, 2024, certain subsidiaries have provided guarantees and collateral to secure obligations under Alcoa’s and ANHBV’s credit facilities and outstanding senior notes. Press releases regarding the transactions are included as Exhibits 99.1 and 99.2.

Fitch Ratings - New York - 28 Feb 2025: Fitch Ratings has affirmed the Long-Term Default Ratings (IDRs) of Alcoa Corporation (Alcoa) and Alcoa Nederland Holding B.V. (Alcoa Nederland) at 'BB+'. Fitch has also affirmed Alcoa Nederland's senior unsecured note ratings at 'BB+' with a Recovery Rating of 'RR4' and the senior secured revolver rating at 'BBB-' /'RR2'. The Rating Outlook is Stable.

The ratings reflect Alcoa Corporation's leading positions in bauxite, alumina and aluminum, and solid cost position and control over spending. The scope of its operations as well as cost and spending management affords the flexibility necessary to navigate through the volatility in the aluminum and alumina markets.

The Stable Outlook reflects Fitch's expectations for EBITDA leverage generally below 2.5x and not exceeding 3.5x.

Alcoa Corporation announced that Steven W. Williams, Chairman of the Board, will not stand for re-election at the company's 2025 Annual Meeting of Stockholders. Williams, who has served on the Board since Alcoa became a public company in 2016 and as Chairman since 2021, will continue in his role until the conclusion of the Annual Meeting. His decision is not due to any disagreement with the company or the Board. Following his departure, the Board will be reduced to eleven members. President and CEO William F. Oplinger expressed gratitude for Williams' leadership and contributions to Alcoa’s transformation into a leading global aluminum company.