Alcoa Q1 Revenue Drops 7% to $3.2B, EBITDA Rises $68M on Smelter Restart
Alcoa reported Q1 revenue fell 7% sequentially to $3.2 billion with net income of $425 million ($1.60 EPS) and adjusted EBITDA rising $68 million to $595 million. Free cash flow was negative $298 million, offset by a $1.4 billion cash balance and restart of the San Ciprian smelter as the company advances mine approvals in Western Australia.
1. Q1 Financial Results
Alcoa’s first-quarter revenue decreased 7% sequentially to $3.2 billion, with net income of $425 million, or $1.60 per share. Excluding special items, adjusted net income was $373 million ($1.40 EPS) and adjusted EBITDA increased by $68 million to $595 million, while cash balance stood at $1.4 billion.
2. Operational Developments
The company completed the restart of the San Ciprian smelter, boosting production capacity and improving safety metrics. Capital expenditures totaled $119 million, supporting operational stability, while the alumina segment faced lower shipments and higher energy costs that weighed on margins.
3. Strategic Initiatives and Challenges
Free cash flow was negative $298 million due to seasonal working capital build, increasing adjusted net debt to $1.8 billion. Alcoa is advancing mine approvals in Western Australia and exploring monetization of the Massena East site, positioning to capitalize on anticipated aluminum price gains despite Middle East-related logistical challenges.