Alcoa Corporation (AA) Reports for Q2 2025; Earnings Beat Estimates

Due to strong hedge fund interest, Alcoa Corporation (NYSE:AA) is among the 11 Best Mineral Stocks to Buy According to Hedge Funds.

Alcoa Corporation (AA) Reports for Q2 2025; Earnings Beat Estimates

A construction crew working on a solar energy system, revealing the company’s drive for success.

On July 16, 2025, Alcoa Corporation (NYSE:AA) reported results for Q2 2025, which turned out to be a stronger-than-expected quarter. The company reported an adjusted EPS of $0.39 per share, surpassing estimates of $0.29. Meanwhile, sequential revenue went down by 10% to $3 billion. Lower alumina and aluminum prices, along with a $95 million tariff (including the 50% U.S. Section 232 tariff on Canadian aluminum), had a heavy impact, also dragging adjusted EBITDA down by $542 million to $313 million. To mitigate the tariff impact, the company is planning to reroute 100,000 or more metric tons to non-U.S. purchasers.

On the strategic side, Alcoa Corporation (NYSE:AA) closed its $1.35 billion Ma’aden JV exit on July 1, 2025, selling its 25.1% stake in the venture to Saudi Arabian Mining Company. Meanwhile, the company continued with its commitment to sustainable actions with initiatives like EcoLum sales and supply extensions with Prysmian.

Looking ahead, improved alumina performance and tariff-offsetting Midwest premiums are expected in Q3. However, the company expresses caution due to power-related delays at San Ciprián. Alcoa has faced a challenging environment due to the high cost of energy at the site for an extended period.

After the earnings release, on July 18, 2025, Morgan Stanley cut its price target for AA from $40 to $38, while maintaining an ‘Overweight’ rating, citing the company’s short-term market condition and strategic outlook.

With its operations in Australia, Brazil, Canada, Iceland, Norway, Spain, the United States, and internationally, Alcoa Corporation (NYSE:AA) is engaged in the bauxite mining, alumina refining, aluminum production, and energy generation business. It is included in our list of the Best Material Stocks.

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