Alcoa Corporation (NYSE: AA; ASX: AAI) (Alcoa or the Company) today reported results for the third quarter 2025 that reflect increased production of alumina and aluminum, and one-time items.

Financial Results and Highlights

• Generated revenue of $3.0 billion
• Recorded quarterly net income of $232 million, or $0.88 per common share, which includes $895 million of restructuring and related charges due to the permanent closure of the Kwinana refinery in Australia and a $786 million gain on the sale of interest in the joint venture with Saudi Arabian Mining Company (Ma’aden)
• Set year-to-date production records at five aluminum smelters in Canada, Norway, Australia, and the U.S.
• Progressed the execution of a new long-term energy contract for the Massena smelter in New York
• Engaged with U.S. and Australian governments to advance the development of a gallium plant to be co-located at the Wagerup refinery in Australia
• Finished the third quarter 2025 with a cash balance of $1.5 billion, including full repayment of a $74 million term loan

“During the third quarter, we continued to deliver on operational stability and the optimization of our portfolio,” said Alcoa President and CEO William F. Oplinger. “Looking ahead to the fourth quarter, we will focus on safety, stability, and continuous improvement to increase overall profitability, while we progress Australia mine approvals.”

Third Quarter 2025 Results

• Production: Alumina production increased 4 percent sequentially to 2.5 million metric tons primarily related to higher output from the Australian refineries due to lower maintenance in the quarter. In the Aluminum segment, production increased 1 percent sequentially to 579,000 metric tons primarily due to progress on the San Ciprián, Spain smelter restart.
  
  
  
  
• Shipments: In the Alumina segment, third-party shipments of alumina were flat sequentially at 2.2 million metric tons, with higher shipments due to increased refinery production being partially offset by decreased trading activity. In Aluminum, total shipments decreased 3 percent sequentially primarily due to decreased trading and timing of shipments.
  
  
  
  
• Revenue: The Company’s total third-party revenue of $3.0 billion decreased 1 percent sequentially. In the Alumina segment, third-party revenue decreased 9 percent on lower volumes and price from bauxite offtake and supply agreements. In the Aluminum segment, third-party revenue increased 4 percent on an increase in average realized third-party price, partially offset by lower shipments and unfavorable currency impacts.
  
  
  
  
• Net income attributable to Alcoa Corporation was $232 million, or $0.88 per common share. The results reflect the gain on the sale of interest in the Ma’aden joint venture and a favorable mark-to-market change on the Ma’aden shares, partially offset by restructuring charges (see below). Sequentially, the results reflect increased tariff costs on imported aluminum, charges to increase asset retirement obligations primarily in Brazil, unfavorable currency impacts, and lower alumina prices, partially offset by higher aluminum prices.
  
  
  
  In the third quarter 2025, the Midwest premium earned on the Company’s U.S. aluminum production more than offset the net unfavorable impact of the Midwest premium and tariff costs on imports of aluminum from its Canadian smelters to U.S. customers.
  
  
  
  
• Adjusted net loss was $6 million, or $0.02 per common share, excluding the impact from net special items of $238 million. Notable special items include restructuring and related charges for the closure of the Kwinana refinery of $895 million, a gain on the sale of interest in the Ma’aden joint venture of $786 million, mark-to-market gain on the Ma’aden shares of $267 million, and the net tax benefit of these items.
  
  
  
  
• Adjusted EBITDA excluding special items was $270 million, a sequential decrease of $43 million primarily due to increased tariff costs on imported aluminum, charges to increase asset retirement obligations, unfavorable currency impacts, and lower alumina prices, partially offset by higher aluminum prices.
  
  
  
  
• Cash: Alcoa ended the quarter with a cash balance of $1.5 billion. Cash provided from operations was $85 million. Cash used for financing activities was $105 million, primarily related to $74 million for the full repayment of a term loan and $26 million of cash dividends on stock. Cash used for investing activities was $11 million, primarily related to capital expenditures of $151 million, partially offset by cash received from the sale of interest in the Ma’aden joint venture of $150 million.
  
  
  
  
• Working capital: For the third quarter, Receivables from customers of $1.0 billion, Inventories of $2.2 billion and Accounts payable, trade of $1.6 billion comprised DWC working capital. Alcoa reported 50 days working capital, a sequential increase of 3 days primarily due to an increase in accounts receivable days on higher pricing for aluminum.

Key Actions

• Massena energy contract: On October 22, 2025, Alcoa announced a long-term energy contract with the New York Power Authority (NYPA) and a capital investment of approximately $60 million in the facility’s anode baking furnace to support future operations at the Massena smelter.
  
  
  
  
• Gallium project: On October 20, 2025, Alcoa announced support from the U.S. and Australian governments to advance development of a gallium plant to be co-located at the Wagerup refinery in Australia.
  
  
  
  
• Kwinana refinery: On September 29, 2025, the Company announced the decision to permanently close the Kwinana refinery in Australia.
  
  
  
  
• Term loan: In September 2025, the Company fully repaid $74 million drawn under a term loan and cancelled the agreement.
  
  
  
  
• Australia mine approvals: The Western Australian Environmental Protection Authority (WA EPA) has provided a summary of the comments received during the 12-week public comment period for the Company’s mining activities in Australia, which include the 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 conducting a comprehensive review of the comments received and plans to submit responses to the WA EPA during the fourth quarter 2025. Following 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 by June 2026. An appeals process of the assessment and recommendations will follow ahead of Ministerial decisions which are expected by the end of 2026.

2025 Outlook

The following outlook does not include 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 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 in June 2024.

Alcoa expects 2025 total Aluminum segment production and shipments to remain unchanged from its prior projection, ranging between 2.3 and 2.5 million metric tons, and between 2.5 and 2.6 million metric tons, respectively.

Within the fourth quarter 2025 Alumina Segment Adjusted EBITDA, the Company expects sequential favorable impacts of approximately $80 million due to the absence of charges to increase asset retirement obligations, higher shipments, and lower maintenance costs.

For the fourth quarter 2025, the Aluminum segment expects sequential unfavorable impacts of approximately $20 million due to restart inefficiencies at the San Ciprián smelter, and lower third-party energy sales, partially offset by higher shipments. Tariff costs on higher U.S. imports of aluminum from Canada are expected to increase by approximately $50 million sequentially. Alumina costs in the Aluminum segment are expected to be favorable by approximately $45 million sequentially.

Based on current alumina and aluminum market conditions, Alcoa expects fourth quarter 2025 operational tax expense to approximate $40 million to $50 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 Daylight Time (EDT) / 8:00 a.m. Australian Eastern Daylight Time (AEDT) on Wednesday, October 22, 2025 / Thursday, October 23, 2025, to present third quarter 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. EDT on October 22, 2025 / 7:15 a.m. AEDT on October 23, 2025. 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. The Company 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.