Alcoa Corporation, a top player in the global market for bauxite, alumina and aluminium, has just shared its financial results for the third quarter of 2025. The company saw an uptick in production across both its alumina and aluminium sectors. However, it's worth noting that the quarterly performance was significantly affected by a few major one-time items that shaped the overall financial picture.
Production update
Alumina production saw a 4 per cent increase from the previous quarter, reaching 2.5 million tonnes. This boost was largely due to higher output from Australian refineries, which had less maintenance downtime during this period. In the aluminium segment, production rose slightly by 1 per cent to 579 thousand tonnes because of the ongoing efforts to restart the San Ciprián smelter in Spain.
Shipment update
In the Alumina segment, third-party shipments held steady at 2.2 million tonnes compared to the previous period. This stability came as a result of increased refinery output, although it was somewhat balanced out by a dip in trading activity. Meanwhile, in the aluminium segment, total shipments saw a 3 per cent decrease from the last quarter, primarily due to lower trading volumes and the timing of deliveries.
Revenue update
The company announced that its total revenue from third parties reached USD 3.0 billion, which is a slight dip of 1 per cent from the previous quarter. In the alumina segment, revenue from third parties fell by 9 per cent, primarily due to lower volumes and pricing related to bauxite offtake and supply agreements.
On the other hand, the aluminium segment saw a 4 per cent increase in third-party revenue, mainly due to higher average realised prices. However, this was countered by reduced shipments and unfavourable currency impacts.
Also read: Balancing growth and green: Alcoa’s WA expansion plans put bauxite and climate goals in spotlight
Attributable net income
The mining firm announced a net income attributable of USD 232 million, which translates to USD 0.88 per share. This positive outcome was largely fueled by profits from the sale of its Ma’aden joint venture and favourable adjustments in the market value of Ma’aden shares, although it was somewhat countered by restructuring costs.
The sequential results were affected by rising tariff expenses on imported aluminium, increased asset retirement obligations in Brazil, adverse currency impacts and declining alumina prices. However, these challenges were somewhat balanced out by higher aluminium prices. In Q3 2025, the Midwest premium for the US aluminium production effectively outweighed the combined effects of tariffs and premiums on imports from Canadian smelters.
Adjusted net loss & EBITDA
Alcoa Corporation has announced an adjusted net loss of USD 6 million, which translates to USD 0.02 per share, after excluding USD 238 million in net special items. Among the key special items were USD 895 million in restructuring charges related to the closure of the Kwinana refinery, a USD 786 million gain from the sale of the Ma'aden joint venture and a USD 267 million mark-to-market gain on Ma'aden shares, along with the associated net tax benefit.
Concerning the firm's adjusted EBITDA, excluding those special items, it came in at USD 270 million, which is a decrease of USD 43 million from the previous quarter. This decline was mainly driven by higher tariff costs on imported aluminium, increased asset retirement obligations, unfavourable currency impacts and lower alumina prices, although rising aluminium prices somewhat cushioned it.
Cash & working capital update
Alcoa's Q3 looked at a solid cash balance of USD 1.5 billion, bolstered by USD 85 million from its operating activities. On the financing side, they used USD 105 million, which included USD 74 million to fully pay off a term loan and USD 26 million in dividends.
At the investment front, the company has spent USD 11 million, mainly for USD 151 million in capital expenditures, but this was partially offset by USD 150 million it has received from selling its stake in the Ma'aden joint venture.
For Q3, DWC's working capital included USD 1.0 billion in receivables, USD 2.2 billion in inventories and USD 1.6 billion in trade payables, leading to 50 days of working capital. This marks a sequential increase of 3 days, driven by higher accounts receivable due to rising aluminium prices.
Also read: 3.4% drop: Alcoa’s stock does not agree with CEO Bill Oplinger’s caution
Quarterly Cash Dividend
The firm’s board of directors has announced a quarterly cash dividend of USD 0.10 per share for both common stock and Series A convertible preferred stock. This dividend will be payable on November 21, 2025, to shareholders who are on record as of November 4, 2025.
Overall Q3 2025 performance vs Q3 2024
The firm has announced its revenue for the third quarter of 2025, coming in at USD 2.99 billion, marking a dip from USD 3.02 billion in the previous quarter, but showing an improvement compared to the USD 2.90 billion reported in Q3 2024. The company's net income saw a significant jump to USD 232 million, a notable increase from USD 90 million during the same time last year.
Additionally, income per share climbed to USD 0.88, up from USD 0.38 in Q3 2024. However, it's worth mentioning that adjusted EBITDA, excluding special items, fell to USD 270 million from USD 455 million a year prior, highlighting the effects of one-time items and market conditions on overall performance.
Alcoa President and CEO William F. Oplinger stated, "During the third quarter, we continued to deliver on operational stability and the optimisation of our portfolio. 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."
Key upcoming projects
The company locked a 10-year energy deal with the New York Power Authority (NYPA), which aims to deliver 240 megawatts of competitively priced renewable energy to its Massena Operations starting on April 1, 2026. This agreement paves the way for Alcoa to invest USD 60 million into upgrading and modernising the facility’s anode baking furnace, a vital part of the aluminium smelting process. The project is also getting a boost from a USD 6 million grant from Empire State Development (ESD). With an annual capacity of 130 thousand tonnes, Massena Operations holds the title of the world’s longest continuously operating smelter, employing around 550 workers and contributing more than USD 156 million to the local economy in 2024.
The firm received official support from both the US and Australian governments for its planned gallium production facility at the Wagerup alumina refinery in Western Australia. This project is part of a larger USD 13 billion strategic agreement aimed at decreasing dependence on China for essential minerals. The facility is expected to churn out 100 tonnes of gallium each year, which could cover up to 10 per cent of the global demand. The US export-import bank has provided Letters of Interest exceeding USD 2.2 billion to back various critical mineral initiatives in Australia, including Alcoa's gallium project.
Also read: Alcoa investigates gallium mining opportunities in Western Australia
The firm is on the road to permanently close its Kwinana alumina refinery in Western Australia, a move that follows a production cut that started back in June 2024. Several factors, including the age and size of the facility, its operating costs, current market conditions and issues related to the quality of bauxite, contribute to the decision-making. As a result of this closure, the firm expects to incur restructuring and related charges of about USD 890 million, with cash outflows projected to reach around USD 600 million over the next six years.
What does the rest of 2025 look like?
The Alumina segment is expected to produce and ship between 9.5 and 9.7 million tonnes and 13.1 to 13.3 million tonnes, respectively. This outlook takes into account trading volumes and alumina sourced externally, especially after the Kwinana refinery was curtailed in June 2024. For the aluminium segment, production and shipments are projected to stay in the range of 2.3 to 2.5 million tonnes and 2.5 to 2.6 million tonnes, respectively.
Looking ahead to Q4 2025, the alumina segment's adjusted EBITDA is forecasted to see a boost of about USD 80 million for the increased shipments, reduced maintenance costs and no asset retirement obligation charges. On the other hand, the aluminium segment is bracing for a hit of around USD 20 million due to inefficiencies from restarting the San Ciprián smelter and lower energy sales from third parties, although this might be somewhat balanced out by higher shipments.
Additionally, the US tariffs on aluminium imports from Canada could raise costs by about USD 50 million. Fortunately, alumina costs in the aluminium segment are expected to be favourable by roughly USD 45 million. In comparison, operational tax expenses are anticipated to fall between USD 40 and USD 50 million, depending on market conditions and profitability in different jurisdictions.
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