Alcoa Corporation Reports Fourth Quarter and Full Year 2025 Results
PITTSBURGH--( BUSINESS WIRE)--Alcoa Corporation (NYSE: AA; ASX: AAI) (Alcoa or the Company) today reported fourth quarter and full year 2025 results that reflect continued strength in aluminum pricing and operational performance.
Financial Results and Highlights
M, except per share amounts
4Q25
3Q25
FY25
FY24
Revenue
$
3,449
$
2,995
$
12,831
$
11,895
Net income attributable to Alcoa Corporation
$
226
$
232
$
1,170
$
60
Income per share attributable to Alcoa Corporation common shareholders
$
0.85
$
0.88
$
4.42
$
0.26
Adjusted net income (loss)
$
335
$
(6
)
$
1,000
$
296
Adjusted income (loss) per common share
$
1.26
$
(0.02
)
$
3.77
$
1.35
Adjusted EBITDA excluding special items
$
546
$
270
$
1,984
$
1,589
Fourth Quarter 2025
Full Year 2025
“Reflecting on 2025, we maintained our pace of delivering on key operational, strategic, and capital allocation objectives, while setting numerous production records,” said Alcoa President and CEO William F. Oplinger. “We continue to build on our positive momentum through disciplined operational and financial execution, along with strategic initiatives to maximize value creation.”
Fourth Quarter 2025 Results
Full Year 2025 Results
Fourth Quarter 2025 Key Actions
2026 Outlook
The Company does not provide reconciliations of the forward-looking non-GAAP financial measures Adjusted EBITDA and Adjusted Net Income, including transformation, intersegment eliminations and other corporate Adjusted EBITDA; operational tax expense; and other expense; each excluding special items, to the most directly comparable forward-looking GAAP financial measures because it is impractical to forecast certain special items, such as restructuring charges and mark-to-market contracts, without unreasonable efforts due to the variability and complexity associated with predicting the occurrence and financial impact of such special items. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Alcoa expects 2026 total Alumina segment production to range between 9.7 and 9.9 million metric tons, an increase from 2025 due to productivity improvements. In 2026, alumina shipments are expected to be between 11.8 and 12.0 million metric tons. The difference between production and shipments, which decreased from 2025, reflects trading volumes and externally sourced alumina to fulfill customer contracts.
Alcoa expects 2026 total Aluminum segment production to range between 2.4 and 2.6 million metric tons, an increase from 2025 due to smelter restarts. In 2026, aluminum shipments are expected to range between 2.6 and 2.8 million metric tons.
Within the first quarter 2026 Alumina Segment Adjusted EBITDA, the Company expects sequential unfavorable impacts of $30 million due to the typical first quarter impacts from the beginning of maintenance cycles and lower alumina shipments, as well as lower price and volume from bauxite offtake and supply agreements.
For the first quarter 2026 Aluminum Segment Adjusted EBITDA, Alcoa expects sequential unfavorable impacts of $70 million due to the absence of Spain and Norway carbon dioxide compensation recognized in the fourth quarter 2025 and higher production costs associated with the restart of the San Ciprián smelter.
Based on current alumina and aluminum market conditions, Alcoa expects first quarter 2026 operational tax expense to approximate $65 million to $75 million, which may vary with market conditions and jurisdictional profitability.
Conference Call
Alcoa will hold its quarterly conference call at 5:00 p.m. Eastern Standard Time (EST) / 9:00 a.m. Australian Eastern Daylight Time (AEDT) on Thursday, January 22, 2026 / Friday, January 23, 2026, to present fourth quarter and full year 2025 financial results and discuss the business, developments, and market conditions.
The call will be webcast via the Company’s homepage on www.alcoa.com. Presentation materials for the call will be available for viewing on the same website at approximately 4:15 p.m. EST on January 22, 2026 / 8:15 a.m. AEDT on January 23, 2026. Call information and related details are available under the “Investors” section of www.alcoa.com.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company developments and financial performance through its website, www.alcoa.com, as well as through press releases, filings with the Securities and Exchange Commission, conference calls, media broadcasts, and webcasts. Alcoa does not incorporate the information contained on, or accessible through, its corporate website or such other websites or platforms referenced herein into this press release.
About Alcoa Corporation
Alcoa (NYSE: AA; ASX: AAI) is a global industry leader in bauxite, alumina and aluminum products with a vision to build a legacy of excellence for future generations. With a values-based approach that encompasses integrity, operating excellence, care for people, and courageous leadership, our purpose is to Turn Raw Potential into Real Progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability, and stronger communities wherever we operate.
Discover more by visiting www.alcoa.com. Follow us on our social media channels: Facebook, Instagram, X, YouTube and LinkedIn.
Cautionary Statement on Forward-Looking Statements
This press release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “aims,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “potential,” “plans,” “projects,” “reach,” “seeks,” “sees,” “should,” “strive,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements regarding forecasts concerning global demand growth for bauxite, alumina, and aluminum, and supply/demand balances; statements, projections or forecasts of future or targeted financial results, or operating performance (including our ability to execute on strategies related to environmental, social and governance matters); statements about strategies, outlook, and business and financial prospects; and statements about capital allocation and return of capital. These statements reflect beliefs and assumptions that are based on Alcoa Corporation’s perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but are not limited to: (a) the impact of global economic conditions on the aluminum industry and aluminum end-use markets; (b) volatility and declines in aluminum and alumina demand and pricing, including global, regional, and product-specific prices, or significant changes in production costs which are linked to London Metal Exchange (LME) or other commodities; (c) the disruption of market-driven balancing of global aluminum supply and demand by non-market forces; (d) competitive and complex conditions in global markets; (e) our ability to obtain, maintain, or renew permits or approvals necessary for our mining operations; (f) rising energy costs and interruptions or uncertainty in energy supplies; (g) unfavorable changes in the cost, quality, or availability of raw materials or other key inputs, or by disruptions in the supply chain; (h) economic, political, and social conditions, including the impact of trade policies, tariffs, and adverse industry publicity; (i) legal proceedings, investigations, or changes in foreign and/or U.S. federal, state, or local laws, regulations, or policies; (j) changes in tax laws or exposure to additional tax liabilities; (k) climate change, climate change legislation or regulations, and efforts to reduce emissions and build operational resilience to extreme weather conditions; (l) disruptions in the global economy caused by ongoing regional conflicts; (m) fluctuations in foreign currency exchange rates and interest rates, inflation and other economic factors in the countries in which we operate; (n) global competition within and beyond the aluminum industry; (o) our ability to achieve our strategies or expectations relating to environmental, social, and governance considerations; (p) claims, costs, and liabilities related to health, safety and environmental laws, regulations, and other requirements in the jurisdictions in which we operate; (q) liabilities resulting from impoundment structures, which could impact the environment or cause exposure to hazardous substances or other damage; (r) dilution of the ownership position of the Company’s stockholders, price volatility, and other impacts on the price of Alcoa common stock by the secondary listing of the Alcoa common stock on the Australian Securities Exchange; (s) our ability to obtain or maintain adequate insurance coverage; (t) our ability to execute on our strategy to reduce complexity and optimize our asset portfolio and to realize the anticipated benefits from announced plans, programs, initiatives relating to our portfolio, capital investments, and developing technologies; (u) our ability to integrate and achieve intended results from joint ventures, other strategic alliances, and strategic business transactions; (v) our ability to fund capital expenditures; (w) deterioration in our credit profile or increases in interest rates; (x) impacts on our current and future operations due to our indebtedness; (y) our ability to continue to return capital to our stockholders through the payment of cash dividends and/or the repurchase of our common stock; (z) cyber attacks, security breaches, system failures, software or application vulnerabilities, or other cyber incidents; (aa) labor market conditions, union disputes and other employee relations issues; (bb) a decline in the liability discount rate or lower-than-expected investment returns on pension assets; and (cc) the other risk factors discussed in Alcoa’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other reports filed by Alcoa with the SEC. Alcoa cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Neither Alcoa nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements.
Non-GAAP Financial Measures
This press release contains reference to certain financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Alcoa Corporation believes that the presentation of these non-GAAP financial measures is useful to investors because such measures provide both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations by adjusting the most directly comparable GAAP financial measure for the impact of, among others, “special items” as defined by the Company, non-cash items in nature, and/or nonoperating expense or income items. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Certain definitions, reconciliations to the most directly comparable GAAP financial measures and additional details regarding management’s rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
Quarter Ended
December 31,
2025
September 30,
2025
December 31,
2024
Sales
$
3,449
$
2,995
$
3,486
Cost of goods sold (exclusive of expenses below)
2,854
2,695
2,714
Selling, general administrative, and other expenses
68
78
80
Research and development expenses
(11
)
11
17
Provision for depreciation, depletion, and amortization
162
160
159
Impairment of goodwill
144
—
—
Restructuring and other charges, net
14
885
91
Interest expense
16
33
45
Other expenses (income), net
115
(1,034
)
42
Total costs and expenses
3,362
2,828
3,148
Income before income taxes
87
167
338
(Benefit from) provision for income taxes
(128
)
(51
)
136
Net income
215
218
202
Less: Net loss attributable to noncontrolling interest
(11
)
(14
)
—
NET INCOME ATTRIBUTABLE TO ALCOA CORPORATION
$
226
$
232
$
202
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS (1):
Basic:
Net income
$
0.86
$
0.88
$
0.77
Average number of common shares
260,928,232
258,915,524
258,356,066
Diluted:
Net income
$
0.85
$
0.88
$
0.76
Average number of common shares
263,299,637
260,889,062
260,457,179
For the quarter ended December 31, 2025, undistributed earnings of $2 were allocated to preferred stock under the two-class method required by GAAP. For the quarter ended September 30, 2025, undistributed earnings of $3 were allocated to preferred stock under the two-class method required by GAAP. For the quarter ended December 31, 2024, dividends paid on preferred stock were $1 and undistributed earnings of $2 were allocated to preferred stock under the two-class method required by GAAP.
Alcoa Corporation and subsidiaries
Statement of Consolidated Operations (unaudited)
(dollars in millions, except per-share amounts)
Year Ended
December 31,
2025
December 31,
2024
Sales
$
12,831
$
11,895
Cost of goods sold (exclusive of expenses below)
10,639
10,044
Selling, general administrative, and other expenses
299
275
Research and development expenses
24
57
Provision for depreciation, depletion, and amortization
623
642
Impairment of goodwill
144
—
Restructuring and other charges, net
918
341
Interest expense
158
156
Other (income) expenses, net
(1,057
)
91
Total costs and expenses
11,748
11,606
Income before income taxes
1,083
289
(Benefit from) provision for income taxes
(49
)
265
Net income
1,132
24
Less: Net loss attributable to noncontrolling interest
(38
)
(36
)
NET INCOME ATTRIBUTABLE TO ALCOA CORPORATION
$
1,170
$
60
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS (1):
Basic:
Net income
$
4.45
$
0.26
Average number of common shares
259,377,676
212,420,991
Diluted:
Net income
$
4.42
$
0.26
Average number of common shares
261,202,037
214,051,326
(1)
For the year ended December 31, 2025, dividends paid on preferred stock were $1 and undistributed earnings of $15 were allocated to preferred stock under the two-class method required by GAAP. For the year ended December 31, 2024, dividends paid on preferred stock were $1 and undistributed earnings of $3 were allocated to preferred stock under the two-class method required by GAAP.
Alcoa Corporation and subsidiaries
Consolidated Balance Sheet (unaudited)
(in millions)
December 31, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
1,597
$
1,138
Receivables from customers
1,064
1,096
Other receivables
204
143
Inventories
2,177
1,998
Fair value of derivative instruments
49
25
Prepaid expenses and other current assets (1)
378
514
Total current assets
5,469
4,914
Properties, plants, and equipment
20,537
19,550
Less: accumulated depreciation, depletion, and amortization
13,837
13,161
Properties, plants, and equipment, net
6,700
6,389
Investments
477
980
Noncurrent marketable securities
1,397
—
Deferred income taxes
771
284
Fair value of derivative instruments
34
—
Other noncurrent assets (2)
1,364
1,497
Total assets
$
16,212
$
14,064
LIABILITIES
Current liabilities:
Accounts payable, trade
$
1,938
$
1,805
Accrued compensation and retirement costs
383
362
Taxes, including income taxes
294
102
Fair value of derivative instruments
467
263
Other current liabilities
682
788
Long-term debt due within one year
1
75
Total current liabilities
3,765
3,395
Long-term debt, less amount due within one year
2,438
2,470
Accrued pension benefits
253
256
Accrued other postretirement benefits
427
412
Asset retirement obligations
1,120
691
Environmental remediation
223
182
Fair value of derivative instruments
1,134
836
Noncurrent income taxes
156
9
Other noncurrent liabilities and deferred credits
487
656
Total liabilities
10,003
8,907
MEZZANINE EQUITY
Noncontrolling interest
76
—
EQUITY
Preferred stock
—
—
Common stock
3
3
Additional capital
11,575
11,587
Accumulated deficit
(258
)
(1,323
)
Accumulated other comprehensive loss
(5,187
)
(5,110
)
Total equity
6,133
5,157
Total liabilities, mezzanine equity, and equity
$
16,212
$
14,064
(1)
This line item includes $25 and $43 of current restricted cash at December 31, 2025 and December 31, 2024, respectively.
(2)
This line item includes $70 and $53 of noncurrent restricted cash at December 31, 2025 and December 31, 2024, respectively.
Alcoa Corporation and subsidiaries
Statement of Consolidated Cash Flows (unaudited)
(in millions)
Year Ended December 31,
2025
2024
CASH FROM OPERATIONS
Net income
$
1,132
$
24
Adjustments to reconcile net income to cash from operations:
Depreciation, depletion, and amortization
623
642
Deferred income taxes
(269
)
23
Equity loss (income), net of dividends
10
(2
)
Impairment of goodwill
144
—
Restructuring and other charges, net
918
341
Net (gain) loss from investing activities – asset and investment sales
(784
)
37
Mark-to-market gain on noncurrent marketable securities
(197
)
—
Net periodic pension benefit cost
18
10
Stock-based compensation
41
36
Gain on mark-to-market derivative financial contracts
(35
)
(8
)
Other
79
34
Changes in assets and liabilities, excluding effects of divestitures and foreign currency translation adjustments:
Decrease (increase) in receivables
71
(493
)
(Increase) decrease in inventories
(57
)
51
Decrease (increase) in prepaid expenses and other current assets
113
(68
)
Increase in accounts payable, trade
63
190
Decrease in accrued expenses
(203
)
(108
)
(Decrease) increase in taxes, including income taxes
(42
)
95
Pension contributions
(20
)
(16
)
Increase in noncurrent assets
(107
)
(4
)
Decrease in noncurrent liabilities
(313
)
(162
)
CASH PROVIDED FROM OPERATIONS
1,185
622
FINANCING ACTIVITIES
Additions to debt
1,049
1,032
Payments on debt
(1,213
)
(679
)
Dividends paid on Alcoa preferred stock
(1
)
(1
)
Dividends paid on Alcoa common stock
(104
)
(89
)
Payments related to tax withholding on stock-based compensation awards
(8
)
(15
)
Financial contributions for the divestiture of businesses
(8
)
(35
)
Contributions from noncontrolling interest
27
65
Distributions to noncontrolling interest
—
(49
)
Acquisition of noncontrolling interest
—
(23
)
Other
(3
)
(5
)
CASH (USED FOR) PROVIDED FROM FINANCING ACTIVITIES
(261
)
201
INVESTING ACTIVITIES
Capital expenditures
(618
)
(580
)
Proceeds from the sale of assets
5
3
Additions to investments
(59
)
(37
)
Sale of investments
161
—
Other
9
6
CASH USED FOR INVESTING ACTIVITIES
(502
)
(608
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
36
(28
)
Net change in cash and cash equivalents and restricted cash
458
187
Cash and cash equivalents and restricted cash at beginning of year
1,234
1,047
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD
$
1,692
$
1,234
Alcoa Corporation and subsidiaries
Segment Information (unaudited)
(dollars in millions, except realized prices; dry metric tons in millions (mdmt); metric tons in thousands (kmt))
4Q24
2024
1Q25
2Q25
3Q25
4Q25
2025
Alumina:
Bauxite production (mdmt)
9.3
38.3
9.5
9.3
9.3
9.4
37.5
Third-party bauxite shipments (mdmt)
2.4
6.4
3.0
2.9
1.7
2.4
10.0
Alumina production (kmt)
2,390
10,034
2,355
2,351
2,453
2,481
9,640
Third-party alumina shipments (kmt)
2,289
9,005
2,105
2,195
2,205
2,324
8,829
Intersegment alumina shipments (kmt)
1,199
4,194
1,093
1,089
1,112
1,177
4,471
Produced alumina shipments (kmt)
2,468
10,050
2,316
2,384
2,448
2,514
9,662
Average realized third-party price per metric ton of alumina
$
636
$
472
$
575
$
378
$
377
$
341
$
415
Adjusted operating cost per metric ton of produced alumina shipped
$
310
$
309
$
312
$
323
$
318
$
314
$
317
Third-party bauxite sales
$
128
$
381
$
243
$
208
$
113
$
173
$
737
Third-party alumina sales
1,467
4,281
1,220
843
841
806
3,710
Intersegment alumina sales
846
2,263
712
467
474
457
2,110
Adjusted operating costs (1)
766
3,110
723
770
779
789
3,061
Other segment items (2)
959
2,407
788
609
582
616
2,595
Segment Adjusted EBITDA (3)
$
716
$
1,408
$
664
$
139
$
67
$
31
$
901
Depreciation and amortization
$
86
$
348
$
76
$
80
$
88
$
86
$
330
Equity income (loss)
$
25
$
22
$
15
$
(9
)
$
—
$
—
$
6
Aluminum:
Aluminum production (kmt)
571
2,215
564
572
579
604
2,319
Total aluminum shipments (kmt)
641
2,590
609
634
612
667
2,522
Produced aluminum shipments (kmt)
566
2,277
567
581
576
625
2,349
Average realized third-party price per metric ton of aluminum
$
3,006
$
2,841
$
3,213
$
3,143
$
3,374
$
3,749
$
3,376
Adjusted operating cost per metric ton of produced aluminum shipped
$
2,675
$
2,410
$
2,775
$
2,718
$
2,441
$
2,478
$
2,600
Third-party sales
$
1,895
$
7,230
$
1,901
$
1,956
$
2,040
$
2,462
$
8,359
Intersegment sales
4
16
4
5
5
6
20
Adjusted operating costs (1)
1,514
5,488
1,574
1,578
1,406
1,549
6,107
Other segment items (2)
191
1,101
197
286
332
399
1,214
Segment Adjusted EBITDA (3)
$
194
$
657
$
134
$
97
$
307
$
520
$
1,058
Depreciation and amortization
$
68
$
272
$
67
$
66
$
67
$
70
$
270
Equity (loss) income
$
(17
)
$
(5
)
$
(6
)
$
3
$
—
$
—
$
(3
)
Reconciliation of Total Segment Adjusted EBITDA to Consolidated net income attributable to Alcoa Corporation:
Total Segment Adjusted EBITDA (3)
$
910
$
2,065
$
798
$
236
$
374
$
551
$
1,959
Unallocated amounts:
Transformation (4)
(18
)
(62
)
(12
)
(21
)
(20
)
(27
)
(80
)
Intersegment eliminations
(156
)
(231
)
103
135
(39
)
53
252
Corporate expenses (5)
(46
)
(160
)
(37
)
(45
)
(42
)
(26
)
(150
)
Provision for depreciation, depletion, and amortization
(159
)
(642
)
(148
)
(153
)
(160
)
(162
)
(623
)
Impairment of goodwill
—
—
—
—
—
(144
)
(144
)
Restructuring and other charges, net
(91
)
(341
)
(5
)
(14
)
(885
)
(14
)
(918
)
Interest expense
(45
)
(156
)
(53
)
(56
)
(33
)
(16
)
(158
)
Other (expenses) income, net
(42
)
(91
)
26
112
1,034
(115
)
1,057
Other (6)
(15
)
(93
)
(4
)
(33
)
(62
)
(13
)
(112
)
Consolidated income before income taxes
338
289
668
161
167
87
1,083
(Provision for) benefit from income taxes
(136
)
(265
)
(120
)
(10
)
51
128
49
Net loss attributable to noncontrolling interest
—
36
—
13
14
11
38
Consolidated net income attributable to Alcoa Corporation
$
202
$
60
$
548
$
164
$
232
$
226
$
1,170
The difference between segment totals and consolidated amounts is in Corporate.
(1)
Adjusted operating costs includes all production related costs for alumina or aluminum produced and shipped: raw materials consumed; conversion costs, such as labor, materials, and utilities; and plant administrative expenses.
(2)
Other segment items include costs associated with trading activity, the Alumina segment’s purchase of bauxite from offtake or other supply agreements, the Alumina segment’s commercial shipping services, and the Aluminum segment’s energy assets; other direct and non-production related charges including tariff costs; Selling, general administrative, and other expenses; and Research and development expenses.
(3)
Alcoa Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.
(4)
Transformation includes, among other items, the Adjusted EBITDA of previously closed operations.
(5)
Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center.
(6)
Other includes certain items that are not included in the Adjusted EBITDA of the reportable segments.
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited)
(in millions, except per-share amounts)
Adjusted Income
Quarter ended
Year ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net income attributable to Alcoa Corporation
$
226
$
232
$
202
$
1,170
$
60
Special items:
Restructuring and other charges, net
14
885
91
918
341
Other special items (1)
235
(975
)
(1
)
(806
)
37
Discrete and other tax items impacts (2)
(126
)
(5
)
1
(126
)
(2
)
Tax impact on special items (3)
(13
)
(141
)
(17
)
(151
)
(84
)
Noncontrolling interest impact (3)
(1
)
(2
)
—
(5
)
(56
)
Subtotal
109
(238
)
74
(170
)
236
Net income (loss) attributable to Alcoa Corporation – as adjusted
$
335
$
(6
)
$
276
$
1,000
$
296
Diluted EPS (4):
Net income attributable to Alcoa Corporation common shareholders
$
0.85
$
0.88
$
0.76
$
4.42
$
0.26
Net income (loss) attributable to Alcoa Corporation common shareholders – as adjusted
$
1.26
$
(0.02
)
$
1.04
$
3.77
$
1.35
Net income (loss) attributable to Alcoa Corporation – as adjusted and Diluted EPS – as adjusted are non-GAAP financial measures. Management believes these measures are meaningful to investors because management reviews the operating results of Alcoa Corporation excluding the impacts of restructuring and other charges, various tax items, and other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes it is appropriate to consider Net income (loss) attributable to Alcoa Corporation and Diluted EPS determined under GAAP as well as Net income (loss) attributable to Alcoa Corporation – as adjusted and Diluted EPS – as adjusted.
(1)
Other special items include the following:
(2)
Discrete and other tax items are generally unusual or infrequently occurring items, changes in law, items associated with uncertain tax positions, or the effect of measurement-period adjustments and include the following:
(3)
The tax impact on special items is based on the applicable statutory rates in the jurisdictions where the special items occurred. The noncontrolling interest impact on special items represents Alcoa’s partner’s share of certain special items.
(4)
In any period with a Net loss attributable to Alcoa Corporation (GAAP or as adjusted), the average number of common shares applicable to diluted earnings per share exclude certain share equivalents as their effect is anti-dilutive.
For the quarter ended December 31, 2025, undistributed earnings of $2 and undistributed earnings – as adjusted of $3 were allocated to preferred stock under the two-class method. For the quarter ended September 30, 2025, undistributed earnings of $3 were allocated to preferred stock under the two-class method. For the quarter ended December 31, 2024, dividends paid on preferred stock were $1, and undistributed earnings of $2 and undistributed earnings – as adjusted of $3 were allocated to preferred stock under the two-class method.
For the year ended December 31, 2025, dividends paid on preferred stock were $1, and undistributed earnings of $15 and undistributed earnings – as adjusted of $13 were allocated to preferred stock under the two-class method. For the year ended December 31, 2024, dividends paid on preferred stock were $1, and undistributed earnings of $3 and undistributed earnings – as adjusted of $5 were allocated to preferred stock under the two-class method.
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions)
Adjusted EBITDA
Quarter ended
Year ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Net income attributable to Alcoa Corporation
$
226
$
232
$
202
$
1,170
$
60
Add:
Net loss attributable to noncontrolling interest
(11
)
(14
)
—
(38
)
(36
)
(Benefit from) provision for income taxes
(128
)
(51
)
136
(49
)
265
Other expenses (income), net
115
(1,034
)
42
(1,057
)
91
Interest expense
16
33
45
158
156
Restructuring and other charges, net
14
885
91
918
341
Impairment of goodwill
144
—
—
144
—
Provision for depreciation, depletion, and amortization
162
160
159
623
642
Adjusted EBITDA
538
211
675
1,869
1,519
Special items (1)
8
59
2
115
70
Adjusted EBITDA, excluding special items
$
546
$
270
$
677
$
1,984
$
1,589
(1)
Special items include the following (see reconciliation of Adjusted Income above for additional information):
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions)
Free Cash Flow
Quarter ended
Year ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Cash provided from operations
$
537
$
85
$
415
$
1,185
$
622
Capital expenditures
(243
)
(151
)
(169
)
(618
)
(580
)
Free cash flow
$
294
$
(66
)
$
246
$
567
$
42
Free cash flow is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures, which are necessary to maintain and expand Alcoa Corporation’s asset base and are expected to generate future cash flows from operations. It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
Net Debt and Adjusted Net Debt
December 31, 2025
December 31, 2024
Short-term borrowings
$
9
$
50
Long-term debt due within one year
1
75
Long-term debt, less amount due within one year
2,438
2,470
Total debt
2,448
2,595
Less: Cash and cash equivalents
1,597
1,138
Net debt
851
1,457
Plus: Net pension / OPEB liability
611
600
Adjusted net debt
$
1,462
$
2,057
Net debt is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt.
Adjusted net debt is also a non-GAAP financial measure. Management believes this measure is meaningful to investors because management also assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt and net pension/OPEB liability.
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions)
DWC Working Capital and Days Working Capital
Quarter ended
December 31, 2025
September 30, 2025
December 31, 2024
Receivables from customers
$
1,064
$
1,045
$
1,096
Add: Inventories
2,177
2,191
1,998
Less: Accounts payable, trade
(1,938
)
(1,618
)
(1,805
)
DWC working capital
$
1,303
$
1,618
$
1,289
Sales
$
3,449
$
2,995
$
3,486
Number of days in the quarter
92
92
92
Days working capital (1)
35
50
34
DWC working capital and Days working capital are non-GAAP financial measures. Management believes these measures are meaningful to investors because management uses its working capital position to assess Alcoa Corporation’s efficiency in liquidity management.
(1)
Days working capital is calculated as DWC working capital divided by the quotient of Sales and number of days in the quarter.