Alcoa Corporation has reported significant financial improvements for the fourth quarter and full year 2024, driven by strong alumina and aluminium pricing and operational advancements.
The company recorded a full-year revenue increase of 13 per cent to $11.9 billion, alongside a net income of $60 million, reversing the $651 million loss recorded in 2023, as revealed in a news release.
In the fourth quarter, Alcoa achieved a revenue of $3.5 billion, a 20 per cent sequential increase, supported by higher alumina and aluminium prices.
Net income for the quarter surged 124 per cent sequentially to $202 million, or $0.76 per share. Adjusted net income for the quarter stood at $276 million, or $1.04 per share, while adjusted EBITDA, excluding special items, reached $677 million, up 49 per cent sequentially.
Alcoa President and CEO William Oplinger highlighted the company’s progress, stating, “Reflecting on 2024, it was a productive year for Alcoa as we delivered on strategic actions and operational improvements, including closing the acquisition of Alumina Limited, announcing the sale of our interest in the Ma’aden joint ventures, hitting production records, and improving operational stability.”
“Looking ahead to 2025, we will continue to drive operational excellence and improve our overall competitiveness.”
In particular, the company set annual production records across five smelters in the US, Canada, and Norway.
It also completed the acquisition of Alumina Limited and announced the sale of its 25.1 per cent interest in the Ma’aden joint ventures.
The curtailment of the Kwinana refinery in Australia was completed, reflecting a strategic move to manage water costs.
In the fourth quarter, alumina production dipped slightly by 2 per cent sequentially, while aluminium production rose 2 per cent due to progress at the Alumar smelter in Brazil.
Alumina shipments increased by 12 per cent sequentially, while aluminium shipments remained steady.
Alcoa ended 2024 with a cash balance of $1.1 billion, supported by a $737 million green bond issuance and the repayment of $385 million in debt from the Alumina Limited acquisition.
In 2024, the company implemented a $645 million profitability improvement program, surpassing its target with $675 million in improvements.
Looking ahead, Alcoa projects alumina production for 2025 to range between 9.5 and 9.7 million metric tons, reflecting the full impact of the Kwinana refinery curtailment.
Aluminium production is expected to increase, ranging between 2.3 and 2.5 million metric tons, supported by smelter restarts.
The company anticipates favourable impacts of $30 million in the first quarter of 2025 within the alumina segment adjusted EBITDA, partially offset by seasonal maintenance cycles.
Conversely, the aluminium segment expects a $60 million sequential decline due to the absence of fourth-quarter benefits from the IRA 45X credit and other seasonal factors.
