Alcoa(US:AA)2025-10-22 20:13Financial Performance - Alcoa reported third-quarter 2025 revenue of $2.995 billion, a decrease of 1% sequentially from $3.018 billion in Q2 2025[3]. - Net income attributable to Alcoa Corporation was $232 million, or $0.88 per share, compared to $164 million and $0.62 per share in Q2 2025[3]. - Alcoa Corporation reported Q3 2025 sales of $2,995 million, a slight decrease from $3,018 million in Q2 2025 but an increase from $2,904 million in Q3 2024[23]. - The net income attributable to Alcoa for Q3 2025 was $232 million, up from $164 million in Q2 2025 and significantly higher than $90 million in Q3 2024[23]. - For the nine months ended September 30, 2025, Alcoa's sales reached $9,382 million, compared to $8,409 million for the same period in 2024, reflecting a year-over-year growth of 11.5%[24]. - Alcoa's net income for the nine months ended September 30, 2025, was $944 million, a significant recovery from a net loss of $142 million in the same period of 2024[24]. - Alcoa's earnings per share for Q3 2025 were $0.88, compared to $0.63 in Q2 2025 and $0.39 in Q3 2024, reflecting strong profitability growth[23]. Production and Operations - Alumina production increased by 4% sequentially to 2.5 million metric tons, while aluminum production rose by 1% to 579,000 metric tons[8]. - The company expects 2025 total alumina production to remain between 9.5 to 9.7 million metric tons, unchanged from prior projections[10]. - For the fourth quarter 2025, Alcoa anticipates unfavorable impacts of approximately $20 million due to restart inefficiencies at the San Ciprián smelter[12]. - Alcoa is advancing the development of a gallium plant at the Wagerup refinery in Australia with support from U.S. and Australian governments[4]. - The company plans to submit responses to the Western Australian Environmental Protection Authority regarding mining activities in Australia in Q4 2025[4]. Costs and Expenses - Adjusted EBITDA excluding special items was $270 million, down $43 million sequentially due to increased tariff costs and lower alumina prices[3]. - The total costs and expenses for Q3 2025 were $2,828 million, slightly lower than $2,857 million in Q2 2025 and higher than $2,720 million in Q3 2024[23]. - The company incurred restructuring and other charges of $885 million in Q3 2025, a notable increase from $14 million in Q2 2025 and $30 million in Q3 2024[23]. - Alcoa's operational tax expense for Q4 2025 is expected to be approximately $40 million to $50 million, subject to market conditions[13]. Cash Flow and Debt - Alcoa ended Q3 2025 with a cash balance of $1.5 billion, including the full repayment of a $74 million term loan[4]. - Alcoa's cash and cash equivalents increased to $1,485 million as of September 30, 2025, up from $1,138 million at the end of 2024[26]. - Total debt as of September 30, 2025, was $2,581 million, slightly down from $2,595 million as of December 31, 2024[37]. - Net debt as of September 30, 2025, was $1,096 million, compared to $1,457 million as of December 31, 2024[37]. - Free cash flow for the quarter ended September 30, 2025, was $(66) million, a decrease from $357 million in the previous quarter and $(3) million in the same quarter last year[36]. Assets and Working Capital - The company reported a total asset value of $15,969 million as of September 30, 2025, compared to $14,064 million at the end of 2024, indicating a growth of 13.5%[26]. - DWC working capital for the quarter ended September 30, 2025, was $1,618 million, an increase from $1,566 million in the previous quarter and $1,414 million in the same quarter last year[40]. - Days working capital for the quarter ended September 30, 2025, was 50 days, compared to 47 days in the previous quarter and 45 days in the same quarter last year[40]. Other Notable Items - The company reported a gain on the sale of interest in the Ma'aden joint venture of $786 million for the quarter ended September 30, 2025[32]. - Costs related to the closure of the Kwinana, Australia refinery amounted to $39 million for the quarter ended September 30, 2025[35]. - The company recognized a net benefit for discrete tax items of $5 million for the quarter ended September 30, 2025[32]. - Research and development expenses for Q3 2025 were $11 million, down from $12 million in Q2 2025 and $16 million in Q3 2024[23].