Nucor earnings beat by $0.08, revenue fell short of estimates
PITTSBURGH - Alcoa Corporation (NYSE:AA), the $7.85 billion market cap aluminum producer with a GOOD Financial Health score according to InvestingPro, announced Tuesday it has completed the sale of its 25.1% ownership stake in the Ma’aden Joint Venture to Saudi Arabian Mining Company (Ma’aden) for approximately $1.35 billion in combined shares and cash.
The transaction, which closes a 16-year partnership, provides Alcoa with approximately 86 million Ma’aden shares valued at $1.2 billion and $150 million in cash. The company, which generated $12.66 billion in revenue over the last twelve months with an EBITDA of $2.29 billion, expects to record a gain of approximately $780 million in other income for the third quarter of 2025, which will be reported as a special item.
Under the agreement terms, Alcoa must hold the Ma’aden shares for a minimum of three years, with permission to sell one-third of the shares after each of the third, fourth, and fifth anniversaries of the closing. The company is allowed to hedge and borrow against these shares during the holding period under certain conditions. Following the transaction, Alcoa now owns approximately 2% of Ma’aden’s current outstanding shares.
"While today marks the end of the Joint Venture, the closing of this transaction demonstrates the initial value to our shareholders and enables visibility within Alcoa’s financials until we monetize in the future," said William F. Oplinger, Alcoa’s President and CEO, in a press release statement.
The Ma’aden Joint Venture was established in 2009 as a fully integrated mining complex in Saudi Arabia, comprising the Ma’aden Bauxite and Alumina Company (bauxite mine and alumina refinery) and the Ma’aden Aluminum Company (aluminum smelter and casthouse). Before the sale, Alcoa owned 25.1% of the joint venture, while Ma’aden held 74.9%.
Citi acted as Alcoa’s exclusive financial advisor for the transaction, with White & Case LLP serving as legal counsel.
In other recent news, Alcoa Corporation announced a quarterly cash dividend of $0.10 per share for its common and Series A convertible preferred stock, scheduled for payment on June 6, 2025. Despite U.S. tariffs, the company reported a strong order book for the second quarter, as stated by CEO William Oplinger. Alcoa also achieved a favorable outcome in a tax dispute with the Australian Taxation Office, potentially leading to a $67 million refund in June 2025. However, the company is dealing with significant disruptions at its San Ciprián operations in Spain due to a nationwide power outage. The impact of this event on production and financials is still under assessment. Additionally, JPMorgan has lowered its price target for Alcoa stock to $25.00 from $28.00, maintaining a Neutral rating. This adjustment follows Alcoa’s first-quarter earnings report, which showed an adjusted EBITDA of $855 million, exceeding consensus estimates. The company faces a projected $90 million impact from Section 232 tariffs in the second quarter, highlighting ongoing challenges in the market.
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