"We are committed to leading the industry in low-carbon aluminum production, which not only meets customer demands but also positions Alcoa as a preferred partner in the evolving market landscape."
— Alcoa CEO
03Detailed Report
AAI.AX
Alcoa Corporation
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
Alcoa Corporation reported a robust performance in Q1 2025, with revenues reaching $3.369 billion, representing a year-over-year increase of 29.63%. The company experienced substantial growth in net income and gross profit margins, attributed to effective cost management and favorable pricing dynamics in the aluminum market. Despite facing a sequential decline in revenue of 3.36% compared to the previous quarter, Alcoa's net income surged to $548 million, reflecting a remarkable 317.46% increase year-over-year. This growth underscores Alcoa's operational resilience even amid fluctuating demand conditions.
Management emphasized their commitment to operational excellence and strategic investments in low-carbon technologies, which are expected to position the company favorably in a transitioning market. Investors are advised to note Alcoa's increased focus on sustainable practices, as this aligns with broader industry trends toward decarbonization. Overall, the results indicate a strong foundational performance, despite market headwinds, and suggest that Alcoa is well poised for future growth as global demand for aluminum continues to recover and evolve.
Alcoa's remarkable growth trajectory in net income and gross profit, alongside robust operating margins of 20.8%, reflects a strong operational framework and cost-effective management practices. Moreover, despite margin pressures, the increase in net income signifies effective pricing strategies and operational efficiencies. The decline in revenue on a QoQ basis is notable but should be contextualized within a seasonal industry cycle and preceding high demand spikes.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.37B
29.63%
-3.36%
Gross Profit
931.00M
377.44%
20.60%
Operating Income
700.00M
315.38%
49.89%
Net Income
548.00M
317.46%
171.29%
EPS
2.08
247.52%
170.13%
Key Financial Ratios
Gross Profit Margin
Fair
27.60%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
20.80%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
16.30%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
3.76%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
9.42%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.71
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.46
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
3.56x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.34x
Price-to-book ratio reasonable for profitable companies
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