Howmet Aerospace Inc. Stock

Alcoa Corporation (AA.US) — FY2025 Annual Report

Alcoa appears to have completed a striking turnaround in 2025, posting net income of roughly $1.16 billion after two consecutive years of losses and a barely-positive 2024. Revenue reached $12.8 billion, up about 8% year-over-year, but the far more dramatic story is on the bottom line, where profit attributable to shareholders grew more than eighteenfold. The reported net margin of around 9% stands well above the company's five-year average of roughly 1%, and the reduction of the accumulated deficit from $1.3 billion to $271 million reflects how much of that recovery flowed through to retained earnings.

What stands out is that the earnings surge does not appear to be driven purely by operations. A swing in "other income" to a $1.06 billion gain—including an approximately $784 million gain from asset and investment sales and a $197 million mark-to-market gain on marketable securities—seems to have carried much of the improvement. This coincides with the apparent restructuring of the Ma'aden joint venture, whose equity-method balance dropped from roughly $1.46 billion to zero, with a corresponding $1.4 billion appearing in newly held noncurrent marketable securities. At the same time, restructuring and other charges ballooned to $918 million, driven largely by the Kwinana refinery, and a $144 million goodwill impairment was recorded. The underlying operating picture may therefore be less exuberant than headline net income suggests.