Overview

* Alcoa ( AA ) reports Q2 revenue of $3.018 bln, beating analyst expectations, per LSEG data

* Adjusted EPS of $0.39 exceeded estimates, reflecting operational performance

* Company completed sale of Ma'aden JV interest for $1.35 billion

Outlook

* Alcoa ( AA ) expects 2025 alumina production between 9.5 and 9.7 mln metric tons

* Company projects 2025 aluminum shipments between 2.5 and 2.6 mln metric tons

* Alcoa ( AA ) sees sequential $90 mln unfavorable impact from tariffs in 3Q25

* Company expects 3Q25 operational tax expense of $50 mln to $60 mln

Result Drivers

* OPERATIONAL PERFORMANCE - Alcoa ( AA ) maintained strong aluminum production and increased shipments, despite lower alumina and aluminum prices.

* TARIFF COSTS - Increased U.S. tariffs on Canadian aluminum imports impacted results, partially mitigated by redirecting shipments.

* MA'ADEN SALE - Completion of Ma'aden JV sale contributed to cash flow, per CEO William F. Oplinger.

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $3.02 $2.90

Revenue bln bln (6

Analysts

)

Q2 Beat $0.39 $0.31 (6

Adjusted Analysts

EPS )

Q2 EPS $0.62

Q2 Beat $103 mln $86.90

Adjusted mln (3

Net Analysts

Income )

Q2 Net $164 mln

Income

Q2 Beat $313 mln $271.60

Adjusted mln (6

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the aluminum peer group is "buy"

* Wall Street's median 12-month price target for Alcoa Corp ( AA ) is $35.00, about 18.6% above its July 15 closing price of $28.49

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)