Alcoa Q2 Earnings Beat Despite $115M Tariff Impact: CEO Interview

Alcoa's Q2 earnings beat expectations despite a $115M tariff hit. CEO William Oplinger discussed the impact of President Trump's aluminum tariffs on the company during a Market Catalysts interview. Alcoa's stock is higher after the results, with EPS in line and adjusted EBITDA and sales beating expectations.

Alcoa Corporation (AA) reported its second-quarter 2025 earnings, which beat market expectations despite a significant $115M hit from tariffs. The company's stock price surged following the announcement, with earnings per share (EPS) in line and adjusted EBITDA and sales exceeding expectations.

CEO William F. Oplinger highlighted Alcoa's operational performance during the quarter, noting strong safety and stability records. The company also completed the sale of its 25.1% stake in the Ma’aden joint venture for $1.35 billion, resulting in an expected gain of approximately $780 million in Q3 2025. Additionally, Alcoa received a favorable decision regarding an Australian tax dispute, leading to a refund of $69 million.

Revenue for the quarter was $3 billion, with Alumina segment revenue down 28% and Aluminum segment revenue up 3%. Net income attributable to Alcoa was $164 million, and adjusted EBITDA was $313 million. Adjusted net income was $103 million or $0.39 per share. Cash from operations was $488 million and free cash flow was $357 million.

However, Alcoa faced challenges due to shifting tariffs and mine approval delays. The company redirected Canadian production to non-U.S. customers and extended a supply agreement with Prysmian to mitigate the impact of tariffs. The restart of the San Ciprián smelter was paused due to a power outage, with expectations to resume by mid-2026.

Looking ahead, Alcoa adjusted its annual outlook for aluminum shipments to 2.5 million to 2.6 million metric tons, down from the initial estimate of 2.6 million to 2.8 million metric tons. The company expects this reduction to primarily impact the third quarter.

Analysts were focused on tariff impacts and mine approval delays, with concerns about the company’s ability to offset higher costs through pricing and the flexibility to redirect supply. Management maintained a factual and steady tone, asserting contingency planning and reaffirming strategic focus.

Alcoa’s Q2 earnings underscored the company’s ability to execute operationally amid significant external headwinds. The company revised its annual aluminum shipment guidance down to 2.5–2.6 million metric tons and highlighted ongoing efforts to maintain operational flexibility and pursue long-term value for stockholders despite a complex global market environment.

References:
[1] https://seekingalpha.com/news/4468159-alcoa-outlines-lower-2025-aluminum-shipment-guidance-to-2_5-2_6m-metric-tons-amid-tariff
[2] https://247wallst.com/investing/2025/07/16/live-updates-will-alcoa-nyse-aa-beat-earnings-after-the-bell/