Revenue Performance: Q2 2025 revenue was $3.018 billion, representing a decline of 10.42% QoQ but an increase of 3.85% YoY. The Alumina segment saw a 28% decrease in third-party revenue due to lower average realized prices, while the Aluminum segment's revenue saw a slight increase of 3% due to higher shipments.
Profitability: Alcoa's gross profit decreased significantly to $366 million, down 60.69% QoQ amid declining aluminum prices influenced by rising Section 232 tariffs. The net income ratio dropped to 5.4%, resulting in EPS of $0.62. Alcoa reported adjusted EBITDA of $313 million with a notable 542 million sequential drop, primarily from pressure on alumina and aluminum prices.
Balance Sheet Health: Cash at the end of the quarter stood at $1.514 billion, ensuring liquidity as operations remained positive. Total assets were approximately $14.98 billion with a total debt level at $75 million, showing a strong financial position.
Cash Flow Highlights: Alcoa generated free cash flow of $357 million for the quarter, primarily driven by a working capital release of $251 million. The company also ended the quarter with a stable equity base, contributing to significant returns to shareholders through dividends totaling $27 million.