Summary of Alcoa Corporation Conference Call Industry Overview - The aluminum market has seen a decline in prices from the highs at the end of 2024 due to resolved supply disruptions, with prices stabilizing around $360 to $370 per metric ton [4] - The aluminum market is expected to be in surplus for the second half of the year and into 2026, with additional capacity coming online from Indonesia and China [4] - North America and Europe are experiencing deficits in aluminum supply, while China continues to import metal from other regions [6] Company-Specific Insights - Alcoa's North American order book remains strong, particularly in the packaging and electrical sectors, despite challenges in the foundry segment [5] - Aluminum shipments for the third quarter are projected to be 15,000 metric tons lower than anticipated due to timing issues, but annual guidance remains unchanged [7] - The company expects a third-quarter tax expense of $60 to $70 million, an increase of $10 million from prior estimates due to higher projected annual earnings [8] Tariff and Regulatory Discussions - Alcoa is engaged in ongoing discussions with the U.S. and Canadian governments regarding Section 232 tariffs, with recent meetings described as constructive [11] - The company is advocating for tariff relief, as it currently pays over $800 million in tariffs, which significantly impacts its financials [13] Operational Updates - The San Ciprián smelter restart is progressing well, but full capacity is now expected by mid-2026 due to delays from a power outage [19] - Discussions with the Spanish government focus on improving the power grid's resiliency, as the company faces energy challenges in Spain [19] - Alcoa is progressing with mine approvals in Western Australia, with expectations for a recommendation from the EPA by mid-2026 [27] Financial Strategy and Capital Allocation - Alcoa aims to reduce net debt below $1.5 billion, currently at $1.7 billion, while also managing high adjusted debt of approximately $3.2 billion [36] - The company is exploring monetization opportunities for its Ma'aden shares and idle sites, which could enhance cash flow generation [38] - Alcoa has $500 million remaining on its share buyback authorization and is committed to maintaining its dividend through market cycles [41] Future Outlook - The company is focused on strategic opportunities, particularly in recycling, to align with customer demand for higher recycled content [43] - An investor day is scheduled for October 30, where Alcoa will share updates on markets, operations, strategies, and capital allocation [46] Additional Considerations - The foundry segment remains a weak point for Alcoa, with challenges from imported finished wheels not subject to tariffs [5] - The company is experiencing uncertainty in customer demand due to tariff-related pricing fluctuations, leading to low inventory levels [17] - Alcoa is committed to addressing environmental concerns related to mining operations, particularly regarding water safety [34]

Financial Performance & Outlook - Cleveland-Cliffs reported revenues of $4.9 billion for Q2 2025[6] - Adjusted EBITDA for Q2 2025 was $97 million, with expectations for continued improvement from Q2 to Q3[6] - The company released over $200 million in inventory working capital during Q2 2025[6] - Cleveland-Cliffs expects to reduce steel unit costs by approximately $160 per ton over three years[55] Steel Shipments & Market Dynamics - Record quarterly steel shipments of 4.3 million net tons were achieved in Q2 2025[6] - Steel shipments increased by 150,000 tons from the prior quarter[11] - The average selling price (ASP) increased by $35 per ton due to higher index pricing, partially offset by lower slab pricing[11] Asset Optimization & Cost Savings - Flat-rolled optimization is expected to yield approximately $145 million in annual savings[15] - Repositioning away from non-core assets is projected to generate around $165 million in annual savings[15] - The company announced the idling of several facilities, including Riverdale, Conshohocken, and Steelton, resulting in approximately $90 million, $45 million, and $30 million in expected annual savings, respectively[16] Trade & Tariffs - Tariffs on steel imports from various countries, including Canada, Brazil, and Mexico, have increased to 50%[18] - Imports of light vehicles from Japan and South Korea are down by more than 30% year-to-date[22] Capital Expenditure & Debt Management - The 2025 capital expenditure guidance has been lowered to approximately $600 million[57] - The company has a liquidity of $2.7 billion[6]