Alcoa(US:AA)2025-05-14 13:43Financial Performance & Outlook - Alcoa reported strong Q1 2025 financial results, with adjusted EBITDA excluding special items increasing to $855 million, compared to $677 million in Q4 2024[48] - Net income attributable to Alcoa Corporation increased significantly to $548 million in Q1 2025, compared to $202 million in Q4 2024[48] - The company's cash balance remains strong at $1.2 billion as of Q1 2025[55] - Alcoa expects alumina production to be between 9.5 and 9.7 million metric tons and aluminum production to be between 2.3 and 2.5 million metric tons for FY25[57] Market Dynamics - The spot alumina price was $349 per metric ton as of May 6th, with over 80% of Chinese refineries being unprofitable at current prices[21] - LME aluminum price is at $2,364 per metric ton, with the Midwest premium fluctuating in response to proposed tariffs[25] - U S primary aluminum apparent consumption is 4.1 million metric tons, with Canada being the most strategic supplier at 2.9 million metric tons[31] Strategic Initiatives - Alcoa completed a $1 billion debt offering in Australia, primarily used to repay existing debt[15] - The company formed a joint venture for the San Ciprián smelter and is resuming production, with an expected EBITDA loss of approximately $70 million to $90 million in 2025[16, 73] - Alcoa is targeting an adjusted net debt between $10 billion and $15 billion[32] Sustainability & Product Offerings - 87% of Alcoa's aluminum smelting portfolio was powered by renewable energy sources in 2023, exceeding the 85% target set for 2024[13] - Alcoa offers EcoSource alumina with low carbon emitting processes and Sustana brand EcoLum (low carbon) and EcoDura (recycled content) aluminum products[13] - Alcoa is committed to reducing GHG emission intensity by 30% by 2025 and 50% by 2030 from a 2015 baseline[109]