Alcoa Q1 2025 Revenue Jumps but Net Profit Misses Expectations Amid Tariff Impacts

Published: Apr 22, 2025 08:56

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According to the financial report, Alcoa achieved revenue of $3.37 billion in Q1 2025, up 29.6% YoY. Net profit was $548 million, compared to a net loss of $252 million in the same period last year. Despite turning a loss into a profit, the net profit level did not meet market expectations. The financial report shows that Alcoa lost approximately $20 million in Q1 due to tariffs. William Oplinger, the CEO, stated in a conference call that about 70% of the aluminum produced by Alcoa in Canada is sold to the US market, and this part of the business currently requires hefty import tariffs. Alcoa indicated that the US tariffs on aluminum imported from Canada are expected to cause a loss of approximately $90 million in Q2. Additionally, as some raw materials are sourced from Chinese suppliers and there are currently no alternative options, the hefty tariffs on Chinese aluminum products are expected to increase the company's annual costs by $10 million to $15 million.

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