185.DE
Alcoa Corporation
Q1 2025 Report
Alcoa Corporation (185.DE) QQ1 2025 Results - Strong Growth Driven by Operational Efficiency...
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Executive Summary
In Q2 2025, Alcoa Corporation reported revenues of $3.018 billion, a decrease of 10.42% compared to Q1 2025, driven primarily by declining aluminum prices and reduced demand from industrial sectors. However, the company witnessed an extraordinary year-over-year net income increase of 720%, reaching $164 million, largely due to improved operational efficiencies and a reduction in costs. This financial performance reflects strategic initiatives to enhance profitability, particularly in challenging market conditions.
Management maintained an optimistic outlook for the remainder of the year, citing a potential recovery in aluminum demand and pricing dynamics. They emphasized Alcoa's commitment to cost control measures and operational excellence as critical factors in navigating the current volatile market landscape, thus enhancing investor confidence.
Key Performance Indicators
Revenue
3.02B
QoQ: -10.42% | YoY:3.85%
Gross Profit
366.00M
12.13% margin
QoQ: -60.69% | YoY:-1.88%
Operating Income
161.00M
QoQ: -77.00% | YoY:75.00%
Net Income
164.00M
QoQ: -70.07% | YoY:720.00%
EPS
0.63
QoQ: -69.71% | YoY:472.73%
Revenue Trend
Margin Analysis
Key Insights
- Total revenue for Q2 2025 was $3.018 billion, down from $3.369 billion in Q1 2025, reflecting a quarterly decrease of 10.42%. However, this marked a year-on-year growth of 3.85%.
- Gross profit for Q2 stood at $366 million, resulting in a gross profit margin of 12.12%, a YoY decline of 1.88% and a QoQ drop of 60.69%, impacted by rising costs and pricing pressures.
- Operating income was recorded at $161 million, which represents a significant year-over-year increase of 75.00%, although it declined by 77.00% from the previous quarter.
- Net income reached $164 million, showcasing a remarkable increase of 720% YoY, despite a 70.07% decline from the preceding quarter.
- Operating expenses totaled $2.857 billion, which constricted operating margins but demonstrated management's focus on cost efficiency in a tightening market environment.