Alcoa(US:AA)2025-04-16 20:11Financial Performance - Revenue for Q1 2025 was $3.369 billion, a decrease of 3% sequentially from Q4 2024[3] - Net income increased 171% sequentially to $548 million, or $2.07 per share[3] - Adjusted EBITDA excluding special items rose to $855 million, a 26% sequential increase[3] - For the quarter ended March 31, 2025, Alcoa Corporation reported sales of $3,369 million, a decrease of 3.4% from $3,486 million in the previous quarter and an increase of 29.6% from $2,599 million in the same quarter last year[24] - The net income attributable to Alcoa Corporation for Q1 2025 was $548 million, compared to $202 million in Q4 2024 and a net loss of $252 million in Q1 2024[24] - Earnings per share for Q1 2025 were $2.08 (basic) and $2.07 (diluted), significantly up from $0.77 (basic) and $0.76 (diluted) in Q4 2024[24] - Adjusted EBITDA for the quarter ended March 31, 2025, was $848 million, an increase from $675 million in the previous quarter and $124 million in the same quarter last year[33] - Free cash flow for the quarter ended March 31, 2025, was $(18) million, a decrease from $246 million in the previous quarter and a loss of $324 million in the same quarter last year[35] - The diluted EPS for the quarter ended March 31, 2025, was $2.07, compared to $0.76 in the previous quarter and a loss of $1.41 in the same quarter last year[29] Production and Operations - Alumina production decreased 1% sequentially to 2.35 million metric tons, while Aluminum production also decreased 1% to 564,000 metric tons[7] - Alcoa expects 2025 total Alumina segment production to remain between 9.5 to 9.7 million metric tons[10] - The Aluminum segment production forecast remains unchanged at 2.3 to 2.5 million metric tons for 2025[11] - Bauxite production for Q1 2025 was 9.5 million dry metric tons (mdmt), while alumina production was 2,355 thousand metric tons (kmt)[27] - Alcoa's total aluminum shipments in Q1 2025 were 609 kmt, down from 634 kmt in Q1 2024[27] - The adjusted operating cost per metric ton of produced aluminum shipped increased to $2,775 in Q1 2025 from $2,323 in Q1 2024[27] Financial Position - Cash balance at the end of Q1 2025 was $1.2 billion, with cash provided from operations at $75 million[4] - Total current assets increased to $5,207 million as of March 31, 2025, up from $4,914 million at the end of 2024, driven by higher inventories and receivables[25] - Total liabilities decreased to $8,656 million as of March 31, 2025, compared to $8,907 million at the end of 2024, reflecting a reduction in accounts payable and other current liabilities[25] - Alcoa's cash and cash equivalents increased to $1,202 million as of March 31, 2025, up from $1,138 million at the end of 2024, indicating strong liquidity[25] - Cash and cash equivalents at the end of Q1 2025 were $1,290 million, down from $1,455 million at the end of Q1 2024[26] - Net debt as of March 31, 2025, was $1,491 million, up from $1,457 million at the end of the previous quarter[36] - The total debt as of March 31, 2025, was $2,693 million, compared to $2,595 million at the end of the previous quarter[38] Cost Management and Strategic Initiatives - The company incurred approximately $20 million in tariff costs on aluminum imports from Canada due to the 25% tariff effective March 12, 2025[5] - The company plans to maintain strong performance in the second quarter 2025, despite expected unfavorable impacts from tariffs[12] - Alcoa Corporation continues to focus on optimizing its asset portfolio and reducing complexity in operations as part of its strategic initiatives[22] - The company plans to continue focusing on operational efficiency and cost management to enhance profitability in the upcoming quarters[28] - Alcoa's research and development expenses for Q1 2025 were $12 million, down from $17 million in Q4 2024, indicating a focus on cost management[24] - The company incurred restructuring and other charges of $5 million for the quarter ended March 31, 2025, down from $91 million in the previous quarter[33] Joint Ventures and Collaborations - A joint venture was formed with IGNIS Equity Holdings to support the San Ciprián operations, with Alcoa holding a 75% interest[14] Taxation - The company reported a provision for income taxes of $120 million for Q1 2025, compared to $136 million in Q4 2024, reflecting improved profitability[24] Working Capital - Days working capital for the quarter ended March 31, 2025, was 47 days, compared to 34 days in the previous quarter and 47 days in the same quarter last year[40] Shareholder Information - The average number of common shares outstanding increased to 260,366,376 for Q1 2025, compared to 260,457,179 in Q4 2024, reflecting share buybacks[24] - The company allocated $9 million in undistributed earnings to preferred stock for the quarter ended March 31, 2025[31]