Alcoa Corp 8-K, filed Jan 22, 2025
Alcoa Corp (AA)
About this 8-K
Alcoa Corp filed this 8-K on January 22, 2025.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact Name of Registrant as Specified in its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, including area code: |
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
|
Trading |
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On January 22, 2025, Alcoa Corporation issued a press release announcing its fourth quarter and full year 2024 financial results. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference into this Item 2.02.
The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, shall be deemed “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit number |
|
Description |
|
||
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
The internet addresses in the press release attached as Exhibit 99.1 hereto are included only as inactive textual references and are not intended to be active links to the information therein. Information contained on such websites or platforms, or that can be accessed therein, do not constitute a part of this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
ALCOA CORPORATION |
||
|
|
|
|
|
Date: |
January 22, 2025 |
By: |
|
/s/ Marissa P. Earnest |
|
|
|
|
Marissa P. Earnest |
Exhibit 99.1
Alcoa Corporation Reports Fourth Quarter and Full Year 2024 Results
PITTSBURGH--(BUSINESS WIRE)--January 22, 2025--Alcoa Corporation (NYSE: AA; ASX: AAI) today reported fourth quarter and full year 2024 results that demonstrate significant improvements in financial performance on continued strength in alumina and aluminum pricing and considerable advances in operational stability.
Financial Results and Highlights
M, except per share amounts |
4Q24 |
|
3Q24 |
|
FY24 |
|
FY23 |
|
||||
Revenue |
$ |
3,486 |
|
$ |
2,904 |
|
$ |
11,895 |
|
$ |
10,551 |
|
Net income (loss) attributable to Alcoa Corporation |
$ |
202 |
|
$ |
90 |
|
$ |
60 |
|
$ |
(651 |
) |
Income (loss) per share attributable to Alcoa Corporation common shareholders |
$ |
0.76 |
|
$ |
0.38 |
|
$ |
0.26 |
|
$ |
(3.65 |
) |
Adjusted net income (loss) |
$ |
276 |
|
$ |
135 |
|
$ |
296 |
|
$ |
(405 |
) |
Adjusted income (loss) per common share |
$ |
1.04 |
|
$ |
0.57 |
|
$ |
1.35 |
|
$ |
(2.27 |
) |
Adjusted EBITDA excluding special items |
$ |
677 |
|
$ |
455 |
|
$ |
1,589 |
|
$ |
536 |
|
Fourth Quarter 2024
Full Year 2024
“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,” said Alcoa President and CEO William F. Oplinger. “Looking ahead to 2025, we will continue to drive operational excellence and improve our overall competitiveness.”
1
Fourth Quarter 2024 Results
In October 2024, the U.S. Treasury Department issued final regulations on the IRA 45X credit, which clarified that some direct and indirect material costs can qualify for the credit. In the fourth quarter 2024, the Company recorded the full year 2023 and 2024 benefit related to the update totaling $30 million in Cost of goods sold at the Massena smelter in New York and the Warrick smelter in Indiana.
Full Year 2024 Results
2
Key Actions
3
2025 Outlook
The following outlook does not include reconciliations of the forward-looking non-GAAP financial measures Adjusted EBITDA and Adjusted Net Income, including transformation, intersegment eliminations and other corporate Adjusted EBITDA; operational tax expense; and other expense; each excluding special items, to the most directly comparable forward-looking GAAP financial measures because it is impractical to forecast certain special items, such as restructuring charges and mark-to-market contracts, without unreasonable efforts due to the variability and complexity associated with predicting the occurrence and financial impact of such special items. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Alcoa expects 2025 total Alumina segment production to range between 9.5 to 9.7 million metric tons, a decrease from 2024 due to the curtailment of the Kwinana refinery. In 2025, alumina shipments are expected to be between 13.1 and 13.3 million metric tons, consistent with 2024. The difference between production and shipments reflects trading volumes and externally sourced alumina to fulfill customer contracts due to the curtailment of the Kwinana refinery.
Alcoa expects 2025 total Aluminum segment production to range between 2.3 and 2.5 million metric tons, an increase from 2024 due to smelter restarts. In 2025, aluminum shipments are expected to range between 2.6 and 2.8 million metric tons.
Within the first quarter 2025 Alumina Segment Adjusted EBITDA, the Company expects sequential favorable impacts of $30 million due to the absence of a charge to write down certain inventories to their net realizable value, partially offset by the typical first quarter impacts from the beginning of maintenance cycles and lower shipments.
For the first quarter 2025, the Aluminum Segment expects sequential unfavorable impacts of $60 million due to the non-recurrence of the fourth quarter 2024 benefit from the IRA 45X credit, lower seasonal pricing at Brazil hydro-electric facilities, and the absence of Ma’aden offtake volumes due to the announced transaction.
Within Other expenses, contributions to ELYSISTM in the first quarter of 2025 are expected to increase by $25 million which triggers loss recognition.
Based on current alumina and aluminum market conditions, Alcoa expects first quarter 2025 operational tax expense to approximate $120 million to $130 million, which may vary with market conditions and jurisdictional profitability.
Conference Call
Alcoa will hold its quarterly conference call at 5:00 p.m. Eastern Standard Time (EST) / 9:00 a.m. Australian Eastern Daylight Time (AEDT) on Wednesday, January 22, 2025 / Thursday, January 23, 2025, to present fourth quarter and full year 2024 financial results and discuss the business, developments, and market conditions.
The call will be webcast via the Company’s homepage on www.alcoa.com. Presentation materials for the call will be available for viewing on the same website at approximately 4:15 p.m. EST on January 22, 2025 / 8:15 a.m. AEDT on January 23, 2025. Call information and related details are available under the “Investors” section of www.alcoa.com.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company developments and financial performance through its website, www.alcoa.com, as well as through press releases, filings with the Securities and Exchange Commission, conference calls, media broadcasts, and webcasts. The Company does not incorporate the information contained on, or accessible through, its corporate website or such other websites or platforms referenced herein into this press release.
About Alcoa Corporation
Alcoa (NYSE: AA; ASX: AAI) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. Our purpose is to turn raw potential into real progress, underpinned by Alcoa Values that encompass integrity, operating excellence, care for people and courageous leadership. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to improved safety, sustainability, efficiency, and stronger communities wherever we operate.
Discover more by visiting www.alcoa.com. Follow us on our social media channels: Facebook, Instagram, X, YouTube and LinkedIn.
4
Cautionary Statement on Forward-Looking Statements
This news release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “aims,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “potential,” “plans,” “projects,” “reach,” “seeks,” “sees,” “should,” “strive,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements regarding forecasts concerning global demand growth for bauxite, alumina, and aluminum, and supply/demand balances; statements, projections or forecasts of future or targeted financial results, or operating performance (including our ability to execute on strategies related to environmental, social and governance matters, such as our Green Finance Framework); statements about strategies, outlook, and business and financial prospects; and statements about capital allocation and return of capital. These statements reflect beliefs and assumptions that are based on Alcoa Corporation’s perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but are not limited to: (1) the impact of global economic conditions on the aluminum industry and aluminum end-use markets; (2) volatility and declines in aluminum and alumina demand and pricing, including global, regional, and product-specific prices, or significant changes in production costs which are linked to London Metal Exchange (LME) or other commodities; (3) the disruption of market-driven balancing of global aluminum supply and demand by non-market forces; (4) competitive and complex conditions in global markets; (5) our ability to obtain, maintain, or renew permits or approvals necessary for our mining operations; (6) rising energy costs and interruptions or uncertainty in energy supplies; (7) unfavorable changes in the cost, quality, or availability of raw materials or other key inputs, or by disruptions in the supply chain; (8) our ability to execute on our strategy to be a lower cost, competitive, and integrated aluminum production business and to realize the anticipated benefits from announced plans, programs, initiatives relating to our portfolio, capital investments, and developing technologies; (9) our ability to integrate and achieve intended results from joint ventures, other strategic alliances, and strategic business transactions; (10) economic, political, and social conditions, including the impact of trade policies and adverse industry publicity; (11) fluctuations in foreign currency exchange rates and interest rates, inflation and other economic factors in the countries in which we operate; (12) changes in tax laws or exposure to additional tax liabilities; (13) global competition within and beyond the aluminum industry; (14) our ability to obtain or maintain adequate insurance coverage; (15) disruptions in the global economy caused by ongoing regional conflicts; (16) legal proceedings, investigations, or changes in foreign and/or U.S. federal, state, or local laws, regulations, or policies; (17) climate change, climate change legislation or regulations, and efforts to reduce emissions and build operational resilience to extreme weather conditions; (18) our ability to achieve our strategies or expectations relating to environmental, social, and governance considerations; (19) claims, costs, and liabilities related to health, safety and environmental laws, regulations, and other requirements in the jurisdictions in which we operate; (20) liabilities resulting from impoundment structures, which could impact the environment or cause exposure to hazardous substances or other damage; (21) our ability to fund capital expenditures; (22) deterioration in our credit profile or increases in interest rates; (23) restrictions on our current and future operations due to our indebtedness; (24) our ability to continue to return capital to our stockholders through the payment of cash dividends and/or the repurchase of our common stock; (25) cyber attacks, security breaches, system failures, software or application vulnerabilities, or other cyber incidents; (26) labor market conditions, union disputes and other employee relations issues; (27) a decline in the liability discount rate or lower-than-expected investment returns on pension assets; and (28) the other risk factors discussed in Alcoa’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and other reports filed by Alcoa with the SEC. Alcoa cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Market projections are subject to the risks described above and other risks in the market. Neither Alcoa nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements and none of the information contained herein should be regarded as a representation that the forward-looking statements contained herein will be achieved.
5
Non-GAAP Financial Measures
This news release contains reference to certain financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Alcoa Corporation believes that the presentation of these non-GAAP financial measures is useful to investors because such measures provide both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations by adjusting the most directly comparable GAAP financial measure for the impact of, among others, “special items” as defined by the Company, non-cash items in nature, and/or nonoperating expense or income items. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Certain definitions, reconciliations to the most directly comparable GAAP financial measures and additional details regarding management’s rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
6
Alcoa Corporation and subsidiaries
Statement of Consolidated Operations (unaudited)
(dollars in millions, except per-share amounts)
|
|
Quarter Ended |
|
|||||||||
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|||
Sales |
|
$ |
3,486 |
|
|
$ |
2,904 |
|
|
$ |
2,595 |
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of goods sold (exclusive of expenses below) |
|
|
2,714 |
|
|
|
2,393 |
|
|
|
2,425 |
|
Selling, general administrative, and other expenses |
|
|
80 |
|
|
|
66 |
|
|
|
64 |
|
Research and development expenses |
|
|
17 |
|
|
|
16 |
|
|
|
14 |
|
Provision for depreciation, depletion, and amortization |
|
|
159 |
|
|
|
159 |
|
|
|
163 |
|
Restructuring and other charges, net |
|
|
91 |
|
|
|
30 |
|
|
|
(11 |
) |
Interest expense |
|
|
45 |
|
|
|
44 |
|
|
|
28 |
|
Other expenses (income), net |
|
|
42 |
|
|
|
12 |
|
|
|
(11 |
) |
Total costs and expenses |
|
|
3,148 |
|
|
|
2,720 |
|
|
|
2,672 |
|
|
|
|
|
|
|
|
|
|
|
|||
Income (loss) before income taxes |
|
|
338 |
|
|
|
184 |
|
|
|
(77 |
) |
Provision for income taxes |
|
|
136 |
|
|
|
86 |
|
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|||
Net income (loss) |
|
|
202 |
|
|
|
98 |
|
|
|
(227 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Less: Net income (loss) attributable to noncontrolling interest |
|
|
— |
|
|
|
8 |
|
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
|
|||
NET INCOME (LOSS) ATTRIBUTABLE TO ALCOA |
|
$ |
202 |
|
|
$ |
90 |
|
|
$ |
(150 |
) |
|
|
|
|
|
|
|
|
|
|
|||
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA |
|
|
|
|
|
|
|
|
|
|||
Basic: |
|
|
|
|
|
|
|
|
|
|||
Net income (loss) |
|
$ |
0.77 |
|
|
$ |
0.39 |
|
|
$ |
(0.84 |
) |
Average number of common shares |
|
|
258,356,066 |
|
|
|
231,799,090 |
|
|
|
178,466,610 |
|
|
|
|
|
|
|
|
|
|
|
|||
Diluted: |
|
|
|
|
|
|
|
|
|
|||
Net income (loss) |
|
$ |
0.76 |
|
|
$ |
0.38 |
|
|
$ |
(0.84 |
) |
Average number of common shares |
|
|
260,457,179 |
|
|
|
233,594,549 |
|
|
|
178,466,610 |
|
7
Alcoa Corporation and subsidiaries
Statement of Consolidated Operations (unaudited)
(dollars in millions, except per-share amounts)
|
|
Year Ended |
|
|||||
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||
Sales |
|
$ |
11,895 |
|
|
$ |
10,551 |
|
|
|
|
|
|
|
|
||
Cost of goods sold (exclusive of expenses below) |
|
|
10,044 |
|
|
|
9,813 |
|
Selling, general administrative, and other expenses |
|
|
275 |
|
|
|
226 |
|
Research and development expenses |
|
|
57 |
|
|
|
39 |
|
Provision for depreciation, depletion, and amortization |
|
|
642 |
|
|
|
632 |
|
Restructuring and other charges, net |
|
|
341 |
|
|
|
184 |
|
Interest expense |
|
|
156 |
|
|
|
107 |
|
Other expenses, net |
|
|
91 |
|
|
|
134 |
|
Total costs and expenses |
|
|
11,606 |
|
|
|
11,135 |
|
|
|
|
|
|
|
|
||
Income (loss) before income taxes |
|
|
289 |
|
|
|
(584 |
) |
Provision for income taxes |
|
|
265 |
|
|
|
189 |
|
|
|
|
|
|
|
|
||
Net income (loss) |
|
|
24 |
|
|
|
(773 |
) |
|
|
|
|
|
|
|
||
Less: Net loss attributable to noncontrolling interest |
|
|
(36 |
) |
|
|
(122 |
) |
|
|
|
|
|
|
|
||
NET INCOME (LOSS) ATTRIBUTABLE TO ALCOA |
|
$ |
60 |
|
|
$ |
(651 |
) |
|
|
|
|
|
|
|
||
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA |
|
|
|
|
|
|
||
Basic: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
0.26 |
|
|
$ |
(3.65 |
) |
Average number of common shares |
|
|
212,420,991 |
|
|
|
178,311,096 |
|
|
|
|
|
|
|
|
||
Diluted: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
0.26 |
|
|
$ |
(3.65 |
) |
Average number of common shares |
|
|
214,051,326 |
|
|
|
178,311,096 |
|
|
|
|
|
|
|
|
||
8
Alcoa Corporation and subsidiaries
Consolidated Balance Sheet (unaudited)
(in millions)
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
1,138 |
|
|
$ |
944 |
|
Receivables from customers |
|
|
1,096 |
|
|
|
656 |
|
Other receivables |
|
|
143 |
|
|
|
152 |
|
Inventories |
|
|
1,998 |
|
|
|
2,158 |
|
Fair value of derivative instruments |
|
|
25 |
|
|
|
29 |
|
Prepaid expenses and other current assets(1) |
|
|
514 |
|
|
|
466 |
|
Total current assets |
|
|
4,914 |
|
|
|
4,405 |
|
Properties, plants, and equipment |
|
|
19,550 |
|
|
|
20,381 |
|
Less: accumulated depreciation, depletion, and amortization |
|
|
13,161 |
|
|
|
13,596 |
|
Properties, plants, and equipment, net |
|
|
6,389 |
|
|
|
6,785 |
|
Investments |
|
|
980 |
|
|
|
979 |
|
Deferred income taxes |
|
|
283 |
|
|
|
333 |
|
Fair value of derivative instruments |
|
|
— |
|
|
|
3 |
|
Other noncurrent assets(2) |
|
|
1,499 |
|
|
|
1,650 |
|
Total assets |
|
$ |
14,065 |
|
|
$ |
14,155 |
|
LIABILITIES |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable, trade |
|
$ |
1,805 |
|
|
$ |
1,714 |
|
Accrued compensation and retirement costs |
|
|
362 |
|
|
|
357 |
|
Taxes, including income taxes |
|
|
102 |
|
|
|
88 |
|
Fair value of derivative instruments |
|
|
263 |
|
|
|
214 |
|
Other current liabilities |
|
|
788 |
|
|
|
578 |
|
Long-term debt due within one year |
|
|
75 |
|
|
|
79 |
|
Total current liabilities |
|
|
3,395 |
|
|
|
3,030 |
|
Long-term debt, less amount due within one year |
|
|
2,470 |
|
|
|
1,732 |
|
Accrued pension benefits |
|
|
255 |
|
|
|
278 |
|
Accrued other postretirement benefits |
|
|
412 |
|
|
|
443 |
|
Asset retirement obligations |
|
|
691 |
|
|
|
772 |
|
Environmental remediation |
|
|
182 |
|
|
|
202 |
|
Fair value of derivative instruments |
|
|
836 |
|
|
|
1,092 |
|
Noncurrent income taxes |
|
|
9 |
|
|
|
193 |
|
Other noncurrent liabilities and deferred credits |
|
|
656 |
|
|
|
568 |
|
Total liabilities |
|
|
8,906 |
|
|
|
8,310 |
|
EQUITY |
|
|
|
|
|
|
||
Alcoa Corporation shareholders’ equity: |
|
|
|
|
|
|
||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
3 |
|
|
|
2 |
|
Additional capital |
|
|
11,587 |
|
|
|
9,187 |
|
Accumulated deficit |
|
|
(1,323 |
) |
|
|
(1,293 |
) |
Accumulated other comprehensive loss |
|
|
(5,108 |
) |
|
|
(3,645 |
) |
Total Alcoa Corporation shareholders’ equity |
|
|
5,159 |
|
|
|
4,251 |
|
Noncontrolling interest |
|
|
— |
|
|
|
1,594 |
|
Total equity |
|
|
5,159 |
|
|
|
5,845 |
|
Total liabilities and equity |
|
$ |
14,065 |
|
|
$ |
14,155 |
|
9
Alcoa Corporation and subsidiaries
Statement of Consolidated Cash Flows (unaudited)
(in millions)
|
|
Year Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
CASH FROM OPERATIONS |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
24 |
|
|
$ |
(773 |
) |
Adjustments to reconcile net income (loss) to cash from operations: |
|
|
|
|
|
|
||
Depreciation, depletion, and amortization |
|
|
642 |
|
|
|
632 |
|
Deferred income taxes |
|
|
23 |
|
|
|
(22 |
) |
Equity (income) loss, net of dividends |
|
|
(2 |
) |
|
|
201 |
|
Restructuring and other charges, net |
|
|
341 |
|
|
|
184 |
|
Net loss from investing activities – asset sales |
|
|
37 |
|
|
|
18 |
|
Net periodic pension benefit cost |
|
|
10 |
|
|
|
6 |
|
Stock-based compensation |
|
|
36 |
|
|
|
35 |
|
(Gain) loss on mark-to-market derivative financial contracts |
|
|
(8 |
) |
|
|
26 |
|
Other |
|
|
34 |
|
|
|
78 |
|
Changes in assets and liabilities, excluding effects of divestitures and |
|
|
|
|
|
|
||
(Increase) decrease in receivables |
|
|
(493 |
) |
|
|
104 |
|
Decrease in inventories |
|
|
51 |
|
|
|
243 |
|
(Increase) decrease in prepaid expenses and other current assets |
|
|
(68 |
) |
|
|
39 |
|
Increase (decrease) in accounts payable, trade |
|
|
190 |
|
|
|
(74 |
) |
Decrease in accrued expenses |
|
|
(108 |
) |
|
|
(133 |
) |
Increase (decrease) in taxes, including income taxes |
|
|
95 |
|
|
|
(146 |
) |
Pension contributions |
|
|
(16 |
) |
|
|
(24 |
) |
Increase in noncurrent assets |
|
|
(4 |
) |
|
|
(210 |
) |
Decrease in noncurrent liabilities |
|
|
(162 |
) |
|
|
(93 |
) |
CASH PROVIDED FROM OPERATIONS |
|
|
622 |
|
|
|
91 |
|
|
|
|
|
|
|
|
||
FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Additions to debt |
|
|
1,032 |
|
|
|
127 |
|
Payments on debt |
|
|
(679 |
) |
|
|
(72 |
) |
Proceeds from the exercise of employee stock options |
|
|
— |
|
|
|
1 |
|
Dividends paid on Alcoa preferred stock |
|
|
(1 |
) |
|
|
— |
|
Dividends paid on Alcoa common stock |
|
|
(89 |
) |
|
|
(72 |
) |
Payments related to tax withholding on stock-based compensation awards |
|
|
(15 |
) |
|
|
(34 |
) |
Financial contributions for the divestiture of businesses |
|
|
(35 |
) |
|
|
(52 |
) |
Contributions from noncontrolling interest |
|
|
65 |
|
|
|
188 |
|
Distributions to noncontrolling interest |
|
|
(49 |
) |
|
|
(30 |
) |
Acquisition of noncontrolling interest |
|
|
(23 |
) |
|
|
— |
|
Other |
|
|
(5 |
) |
|
|
1 |
|
CASH PROVIDED FROM FINANCING ACTIVITIES |
|
|
201 |
|
|
|
57 |
|
|
|
|
|
|
|
|
||
INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(580 |
) |
|
|
(531 |
) |
Proceeds from the sale of assets |
|
|
3 |
|
|
|
4 |
|
Additions to investments |
|
|
(37 |
) |
|
|
(70 |
) |
Other |
|
|
6 |
|
|
|
12 |
|
CASH USED FOR INVESTING ACTIVITIES |
|
|
(608 |
) |
|
|
(585 |
) |
|
|
|
|
|
|
|
||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH |
|
|
(28 |
) |
|
|
10 |
|
Net change in cash and cash equivalents and restricted cash |
|
|
187 |
|
|
|
(427 |
) |
Cash and cash equivalents and restricted cash at beginning of year |
|
|
1,047 |
|
|
|
1,474 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT |
|
$ |
1,234 |
|
|
$ |
1,047 |
|
|
|
|
|
|
|
|
||
10
Alcoa Corporation and subsidiaries
Segment Information (unaudited)
(dollars in millions, except realized prices; dry metric tons in millions (mdmt); metric tons in thousands (kmt))
|
4Q23 |
|
|
2023 |
|
|
1Q24 |
|
|
2Q24 |
|
|
3Q24 |
|
|
4Q24 |
|
|
2024 |
|
|||||||
Alumina: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Bauxite production (mdmt) |
|
10.4 |
|
|
|
41.0 |
|
|
|
10.1 |
|
|
|
9.5 |
|
|
|
9.4 |
|
|
|
9.3 |
|
|
|
38.3 |
|
Third-party bauxite shipments (mdmt) |
|
2.0 |
|
|
|
7.6 |
|
|
|
1.0 |
|
|
|
1.5 |
|
|
|
1.5 |
|
|
|
2.4 |
|
|
|
6.4 |
|
Alumina production (kmt) |
|
2,789 |
|
|
|
10,908 |
|
|
|
2,670 |
|
|
|
2,539 |
|
|
|
2,435 |
|
|
|
2,390 |
|
|
|
10,034 |
|
Third-party alumina shipments (kmt) |
|
2,259 |
|
|
|
8,698 |
|
|
|
2,397 |
|
|
|
2,267 |
|
|
|
2,052 |
|
|
|
2,289 |
|
|
|
9,005 |
|
Intersegment alumina shipments (kmt) |
|
1,176 |
|
|
|
4,125 |
|
|
|
943 |
|
|
|
1,025 |
|
|
|
1,027 |
|
|
|
1,199 |
|
|
|
4,194 |
|
Produced alumina shipments (kmt) |
|
2,913 |
|
|
|
11,072 |
|
|
|
2,621 |
|
|
|
2,595 |
|
|
|
2,366 |
|
|
|
2,468 |
|
|
|
10,050 |
|
Average realized third-party price per metric ton of alumina |
$ |
344 |
|
|
$ |
358 |
|
|
$ |
372 |
|
|
$ |
399 |
|
|
$ |
485 |
|
|
$ |
636 |
|
|
$ |
472 |
|
Adjusted operating cost per metric ton of produced alumina shipped |
$ |
303 |
|
|
$ |
315 |
|
|
$ |
304 |
|
|
$ |
313 |
|
|
$ |
310 |
|
|
$ |
310 |
|
|
$ |
309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Third-party bauxite sales |
$ |
124 |
|
|
$ |
484 |
|
|
$ |
64 |
|
|
$ |
96 |
|
|
$ |
93 |
|
|
$ |
128 |
|
|
$ |
381 |
|
Third-party alumina sales |
|
781 |
|
|
|
3,129 |
|
|
|
897 |
|
|
|
914 |
|
|
|
1,003 |
|
|
|
1,467 |
|
|
|
4,281 |
|
Intersegment alumina sales |
|
449 |
|
|
|
1,648 |
|
|
|
395 |
|
|
|
457 |
|
|
|
565 |
|
|
|
846 |
|
|
|
2,263 |
|
Adjusted operating costs(1) |
|
882 |
|
|
|
3,487 |
|
|
|
796 |
|
|
|
814 |
|
|
|
734 |
|
|
|
766 |
|
|
|
3,110 |
|
Other segment items(2) |
|
388 |
|
|
|
1,501 |
|
|
|
421 |
|
|
|
467 |
|
|
|
560 |
|
|
|
959 |
|
|
|
2,407 |
|
Segment Adjusted EBITDA(3) |
$ |
84 |
|
|
$ |
273 |
|
|
$ |
139 |
|
|
$ |
186 |
|
|
$ |
367 |
|
|
$ |
716 |
|
|
$ |
1,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization |
$ |
87 |
|
|
$ |
333 |
|
|
$ |
87 |
|
|
$ |
90 |
|
|
$ |
85 |
|
|
$ |
86 |
|
|
$ |
348 |
|
Equity (loss) income |
$ |
(11 |
) |
|
$ |
(48 |
) |
|
$ |
(11 |
) |
|
$ |
2 |
|
|
$ |
6 |
|
|
$ |
25 |
|
|
$ |
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Aluminum: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Aluminum production (kmt) |
|
541 |
|
|
|
2,114 |
|
|
|
542 |
|
|
|
543 |
|
|
|
559 |
|
|
|
571 |
|
|
|
2,215 |
|
Total aluminum shipments (kmt) |
|
638 |
|
|
|
2,491 |
|
|
|
634 |
|
|
|
677 |
|
|
|
638 |
|
|
|
641 |
|
|
|
2,590 |
|
Produced aluminum shipments (kmt) |
|
543 |
|
|
|
2,166 |
|
|
|
550 |
|
|
|
595 |
|
|
|
566 |
|
|
|
566 |
|
|
|
2,277 |
|
Average realized third-party price per metric ton of aluminum |
$ |
2,678 |
|
|
$ |
2,828 |
|
|
$ |
2,620 |
|
|
$ |
2,858 |
|
|
$ |
2,877 |
|
|
$ |
3,006 |
|
|
$ |
2,841 |
|
Adjusted operating cost per metric ton of produced aluminum shipped |
$ |
2,406 |
|
|
$ |
2,438 |
|
|
$ |
2,323 |
|
|
$ |
2,256 |
|
|
$ |
2,392 |
|
|
$ |
2,675 |
|
|
$ |
2,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Third-party sales |
$ |
1,683 |
|
|
$ |
6,925 |
|
|
$ |
1,638 |
|
|
$ |
1,895 |
|
|
$ |
1,802 |
|
|
$ |
1,895 |
|
|
$ |
7,230 |
|
Intersegment sales |
|
4 |
|
|
|
15 |
|
|
|
4 |
|
|
|
3 |
|
|
|
5 |
|
|
|
4 |
|
|
|
16 |
|
Adjusted operating costs(1) |
|
1,307 |
|
|
|
5,281 |
|
|
|
1,279 |
|
|
|
1,342 |
|
|
|
1,353 |
|
|
|
1,514 |
|
|
|
5,488 |
|
Other segment items(2) |
|
292 |
|
|
|
1,198 |
|
|
|
313 |
|
|
|
323 |
|
|
|
274 |
|
|
|
191 |
|
|
|
1,101 |
|
Segment Adjusted EBITDA(3) |
$ |
88 |
|
|
$ |
461 |
|
|
$ |
50 |
|
|
$ |
233 |
|
|
$ |
180 |
|
|
$ |
194 |
|
|
$ |
657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization |
$ |
70 |
|
|
$ |
277 |
|
|
$ |
68 |
|
|
$ |
68 |
|
|
$ |
68 |
|
|
$ |
68 |
|
|
$ |
272 |
|
Equity (loss) income |
$ |
(18 |
) |
|
$ |
(106 |
) |
|
$ |
2 |
|
|
$ |
21 |
|
|
$ |
(11 |
) |
|
$ |
(17 |
) |
|
$ |
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Reconciliation of Total Segment Adjusted EBITDA to Consolidated net (loss) income attributable to Alcoa Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Segment Adjusted EBITDA(3) |
$ |
172 |
|
|
$ |
734 |
|
|
$ |
189 |
|
|
$ |
419 |
|
|
$ |
547 |
|
|
$ |
910 |
|
|
$ |
2,065 |
|
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Transformation(4) |
|
(26 |
) |
|
|
(80 |
) |
|
|
(14 |
) |
|
|
(16 |
) |
|
|
(14 |
) |
|
|
(18 |
) |
|
|
(62 |
) |
Intersegment eliminations |
|
(12 |
) |
|
|
7 |
|
|
|
(8 |
) |
|
|
(29 |
) |
|
|
(38 |
) |
|
|
(156 |
) |
|
|
(231 |
) |
Corporate expenses(5) |
|
(46 |
) |
|
|
(133 |
) |
|
|
(34 |
) |
|
|
(41 |
) |
|
|
(39 |
) |
|
|
(46 |
) |
|
|
(160 |
) |
Provision for depreciation, depletion, and amortization |
|
(163 |
) |
|
|
(632 |
) |
|
|
(161 |
) |
|
|
(163 |
) |
|
|
(159 |
) |
|
|
(159 |
) |
|
|
(642 |
) |
Restructuring and other charges, net |
|
11 |
|
|
|
(184 |
) |
|
|
(202 |
) |
|
|
(18 |
) |
|
|
(30 |
) |
|
|
(91 |
) |
|
|
(341 |
) |
Interest expense |
|
(28 |
) |
|
|
(107 |
) |
|
|
(27 |
) |
|
|
(40 |
) |
|
|
(44 |
) |
|
|
(45 |
) |
|
|
(156 |
) |
Other income (expenses), net |
|
11 |
|
|
|
(134 |
) |
|
|
(59 |
) |
|
|
22 |
|
|
|
(12 |
) |
|
|
(42 |
) |
|
|
(91 |
) |
Other(6) |
|
4 |
|
|
|
(55 |
) |
|
|
(9 |
) |
|
|
(42 |
) |
|
|
(27 |
) |
|
|
(15 |
) |
|
|
(93 |
) |
Consolidated (loss) income before income taxes |
|
(77 |
) |
|
|
(584 |
) |
|
|
(325 |
) |
|
|
92 |
|
|
|
184 |
|
|
|
338 |
|
|
|
289 |
|
(Provision for) benefit from income taxes |
|
(150 |
) |
|
|
(189 |
) |
|
|
18 |
|
|
|
(61 |
) |
|
|
(86 |
) |
|
|
(136 |
) |
|
|
(265 |
) |
Net loss (income) attributable to noncontrolling interest |
|
77 |
|
|
|
122 |
|
|
|
55 |
|
|
|
(11 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
36 |
|
Consolidated net (loss) income attributable to Alcoa Corporation |
$ |
(150 |
) |
|
$ |
(651 |
) |
|
$ |
(252 |
) |
|
$ |
20 |
|
|
$ |
90 |
|
|
$ |
202 |
|
|
$ |
60 |
|
11
The difference between segment totals and consolidated amounts is in Corporate.
12
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited)
(in millions, except per-share amounts)
Adjusted Income |
|
Income (Loss) |
|
|
Income (Loss) |
|
||||||||||||||
|
|
Quarter ended |
|
|
Year ended |
|
||||||||||||||
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|||||
Net income (loss) attributable to Alcoa Corporation |
|
$ |
202 |
|
|
$ |
90 |
|
|
$ |
(150 |
) |
|
$ |
60 |
|
|
$ |
(651 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restructuring and other charges, net |
|
|
91 |
|
|
|
30 |
|
|
|
(11 |
) |
|
|
341 |
|
|
|
184 |
|
Other special items(1) |
|
|
(1 |
) |
|
|
34 |
|
|
|
(2 |
) |
|
|
37 |
|
|
|
71 |
|
Discrete and other tax items impacts(2) |
|
|
1 |
|
|
|
(3 |
) |
|
|
102 |
|
|
|
(2 |
) |
|
|
45 |
|
Tax impact on special items(3) |
|
|
(17 |
) |
|
|
(12 |
) |
|
|
1 |
|
|
|
(84 |
) |
|
|
(12 |
) |
Noncontrolling interest impact(3) |
|
|
— |
|
|
|
(4 |
) |
|
|
(40 |
) |
|
|
(56 |
) |
|
|
(42 |
) |
Subtotal |
|
|
74 |
|
|
|
45 |
|
|
|
50 |
|
|
|
236 |
|
|
|
246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to Alcoa |
|
$ |
276 |
|
|
$ |
135 |
|
|
$ |
(100 |
) |
|
$ |
296 |
|
|
$ |
(405 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted EPS(4): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to Alcoa |
|
$ |
0.76 |
|
|
$ |
0.38 |
|
|
$ |
(0.84 |
) |
|
$ |
0.26 |
|
|
$ |
(3.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to Alcoa |
|
$ |
1.04 |
|
|
$ |
0.57 |
|
|
$ |
(0.56 |
) |
|
$ |
1.35 |
|
|
$ |
(2.27 |
) |
Net income (loss) attributable to Alcoa Corporation – as adjusted and Diluted EPS – as adjusted are non-GAAP financial measures. Management believes these measures are meaningful to investors because management reviews the operating results of Alcoa Corporation excluding the impacts of restructuring and other charges, various tax items, and other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes it is appropriate to consider Net income (loss) attributable to Alcoa Corporation and Diluted EPS determined under GAAP as well as Net income (loss) attributable to Alcoa Corporation – as adjusted and Diluted EPS – as adjusted.
(1) Other special items include the following:
(2) Discrete and other tax items are generally unusual or infrequently occurring items, changes in law, items associated with uncertain tax positions, or the effect of measurement-period adjustments and include the following:
(3) The tax impact on special items is based on the applicable statutory rates in the jurisdictions where the special items occurred. The noncontrolling interest impact on special items represents Alcoa’s partner’s share of certain special items.
13
(4) In any period with a Net loss attributable to Alcoa Corporation (GAAP or as adjusted), the average number of common shares applicable to diluted earnings per share exclude certain share equivalents as their effect is anti-dilutive.
For the quarter ended December 31, 2024, dividends paid on preferred stock were $1, and undistributed earnings of $2 and undistributed earnings – as adjusted of $3 were allocated to preferred stock under the two-class method. For the quarter ended September 30, 2024, undistributed earnings of $1 and undistributed earnings – as adjusted of $2 were allocated to preferred stock under the two-class method.
For the year ended December 31, 2024, dividends paid on preferred stock were $1, and undistributed earnings of $3 and undistributed earnings – as adjusted of $5 were allocated to preferred stock under the two-class method.
14
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions)
Adjusted EBITDA |
|
Quarter ended |
|
|
Year ended |
|
||||||||||||||
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to Alcoa Corporation |
|
$ |
202 |
|
|
$ |
90 |
|
|
$ |
(150 |
) |
|
$ |
60 |
|
|
$ |
(651 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to noncontrolling interest |
|
|
— |
|
|
|
8 |
|
|
|
(77 |
) |
|
|
(36 |
) |
|
|
(122 |
) |
Provision for income taxes |
|
|
136 |
|
|
|
86 |
|
|
|
150 |
|
|
|
265 |
|
|
|
189 |
|
Other expenses (income), net |
|
|
42 |
|
|
|
12 |
|
|
|
(11 |
) |
|
|
91 |
|
|
|
134 |
|
Interest expense |
|
|
45 |
|
|
|
44 |
|
|
|
28 |
|
|
|
156 |
|
|
|
107 |
|
Restructuring and other charges, net |
|
|
91 |
|
|
|
30 |
|
|
|
(11 |
) |
|
|
341 |
|
|
|
184 |
|
Provision for depreciation, depletion, and amortization |
|
|
159 |
|
|
|
159 |
|
|
|
163 |
|
|
|
642 |
|
|
|
632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDA |
|
|
675 |
|
|
|
429 |
|
|
|
92 |
|
|
|
1,519 |
|
|
|
473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Special items(1) |
|
|
2 |
|
|
|
26 |
|
|
|
(3 |
) |
|
|
70 |
|
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDA, excluding special items |
|
$ |
677 |
|
|
$ |
455 |
|
|
$ |
89 |
|
|
$ |
1,589 |
|
|
$ |
536 |
|
Alcoa Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa Corporation’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.
(1) Special items include the following (see reconciliation of Adjusted Income above for additional information):
15
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions)
Free Cash Flow |
|
Quarter ended |
|
|
Year ended |
|
||||||||||||||
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
|||||
Cash provided from operations |
|
$ |
415 |
|
|
$ |
143 |
|
|
$ |
198 |
|
|
$ |
622 |
|
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital expenditures |
|
|
(169 |
) |
|
|
(146 |
) |
|
|
(188 |
) |
|
|
(580 |
) |
|
|
(531 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Free cash flow |
|
$ |
246 |
|
|
$ |
(3 |
) |
|
$ |
10 |
|
|
$ |
42 |
|
|
$ |
(440 |
) |
Free Cash Flow is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures, which are necessary to maintain and expand Alcoa Corporation’s asset base and are expected to generate future cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
Net Debt |
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||
Short-term borrowings |
|
$ |
50 |
|
|
$ |
56 |
|
Long-term debt due within one year |
|
|
75 |
|
|
|
79 |
|
Long-term debt, less amount due within one year |
|
|
2,470 |
|
|
|
1,732 |
|
Total debt |
|
|
2,595 |
|
|
|
1,867 |
|
|
|
|
|
|
|
|
||
Less: Cash and cash equivalents |
|
|
1,138 |
|
|
|
944 |
|
|
|
|
|
|
|
|
||
Net debt |
|
$ |
1,457 |
|
|
$ |
923 |
|
Net debt is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt. When cash exceeds total debt, the measure is expressed as net cash.
16
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions)
Adjusted Net Debt and Proportional Adjusted Net Debt
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||||||||||||||||||
|
|
Consolidated |
NCI |
Alcoa Proportional |
|
|
Consolidated |
NCI |
Alcoa Proportional |
|
||||||||||||||
Short-term borrowings |
|
$ |
50 |
|
|
$ |
— |
|
|
$ |
50 |
|
|
$ |
56 |
|
|
$ |
— |
|
|
$ |
56 |
|
Long-term debt due within one year |
|
|
75 |
|
|
|
— |
|
|
|
75 |
|
|
|
79 |
|
|
|
31 |
|
|
|
48 |
|
Long-term debt, less amount due within one year |
|
|
2,470 |
|
|
|
— |
|
|
|
2,470 |
|
|
|
1,732 |
|
|
|
— |
|
|
|
1,732 |
|
Total debt |
|
|
2,595 |
|
|
|
— |
|
|
|
2,595 |
|
|
|
1,867 |
|
|
|
31 |
|
|
|
1,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Less: Cash and cash equivalents |
|
|
1,138 |
|
|
|
— |
|
|
|
1,138 |
|
|
|
944 |
|
|
|
141 |
|
|
|
803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net debt (net cash) |
|
|
1,457 |
|
|
|
— |
|
|
|
1,457 |
|
|
|
923 |
|
|
|
(110 |
) |
|
|
1,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Plus: Net pension / OPEB liability |
|
|
597 |
|
|
|
— |
|
|
|
597 |
|
|
|
657 |
|
|
|
17 |
|
|
|
640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted net debt (net cash) |
|
$ |
2,054 |
|
|
$ |
— |
|
|
$ |
2,054 |
|
|
$ |
1,580 |
|
|
$ |
(93 |
) |
|
$ |
1,673 |
|
Net debt is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt. When cash exceeds total debt, the measure is expressed as net cash.
Adjusted net debt and proportional adjusted net debt (prior to Alcoa’s acquisition of Alumina Limited on August 1, 2024) are also non-GAAP financial measures. Management believes that these additional measures are meaningful to investors because management also assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt and net pension/OPEB liability, net of the portion of those items attributable to noncontrolling interest (NCI).
DWC Working Capital and Days Working Capital
|
|
Quarter ended |
|
|||||||||
|
|
December 31, 2024 |
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
|||
Receivables from customers |
|
$ |
1,096 |
|
|
$ |
862 |
|
|
$ |
656 |
|
|
|
|
|
|
|
|
|
|
|
|||
Add: Inventories |
|
|
1,998 |
|
|
|
2,096 |
|
|
|
2,158 |
|
|
|
|
|
|
|
|
|
|
|
|||
Less: Accounts payable, trade |
|
|
(1,805 |
) |
|
|
(1,544 |
) |
|
|
(1,714 |
) |
|
|
|
|
|
|
|
|
|
|
|||
DWC working capital |
|
$ |
1,289 |
|
|
$ |
1,414 |
|
|
$ |
1,100 |
|
|
|
|
|
|
|
|
|
|
|
|||
Sales |
|
$ |
3,486 |
|
|
$ |
2,904 |
|
|
$ |
2,595 |
|
|
|
|
|
|
|
|
|
|
|
|||
Number of days in the quarter |
|
|
92 |
|
|
|
92 |
|
|
|
92 |
|
|
|
|
|
|
|
|
|
|
|
|||
Days working capital(1) |
|
|
34 |
|
|
|
45 |
|
|
|
39 |
|
DWC working capital and Days working capital are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management uses its working capital position to assess Alcoa Corporation’s efficiency in liquidity management.
Contacts
Investor Contact: |
Yolande Doctor |
+1 412 992 5450 |
Yolande.B.Doctor@alcoa.com |
Media Contact: |
Courtney Boone |
+1 412 527 9792 |
Courtney.Boone@alcoa.com |
17