Alcoa misses Q3 expectations as adjusted earnings turn negative

PITTSBURGH - Alcoa Corporation (NYSE:AA) reported a third-quarter adjusted loss of $0.02 per share, falling short of analyst expectations for a $0.02 profit, as the aluminum producer faced increased tariff costs and lower alumina prices. Revenue came in at $3 billion, below the consensus estimate of $3.13 billion.

The company’s shares fell 1.6% following the earnings release, reflecting investor disappointment with the results.

While Alcoa reported a net income of $232 million, or $0.88 per share, this figure included significant one-time items, including an $895 million restructuring charge related to the permanent closure of the Kwinana refinery in Australia and a $786 million gain from selling its interest in a joint venture with Saudi Arabian Mining Company (Ma’aden).

Revenue increased 3.1% YoY from $2.9 billion in the same quarter last year, but decreased 0.8% sequentially from the second quarter. The company’s Adjusted EBITDA excluding special items was $270 million, down from $313 million in the previous quarter.

"During the third quarter, we continued to deliver on operational stability and the optimization of our portfolio," said Alcoa President and CEO William F. Oplinger. "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."

The company maintained its full-year 2025 production guidance for both its Alumina and Aluminum segments. For the fourth quarter, Alcoa expects favorable impacts of approximately $80 million in its Alumina segment due to the absence of charges to increase asset retirement obligations, higher shipments, and lower maintenance costs.

However, the Aluminum segment faces headwinds, with expected sequential unfavorable impacts of approximately $20 million due to restart inefficiencies at the San Ciprián smelter and lower third-party energy sales. Additionally, tariff costs on higher U.S. imports of aluminum from Canada are expected to increase by approximately $50 million sequentially.

Alcoa ended the quarter with a cash balance of $1.5 billion after fully repaying a $74 million term loan.

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