Revenue growth remains highly sensitive to industrial cycles, evidenced by a sharp swing from a 53.2% growth rate in 2024Q4 to a 5.2% contraction by 2026Q1.
| Sales/Revenue | 12.65B | 12.83B | 12.18B | 10.71B | 12.76B | 12.44B | 9.37B | 10.49B | 13.52B | 11.78B | 9.32B | 11.22B | 23.95B |
| Revenue Growth % | -2.71% | 5.31% | 13.81% | -16.11% | 2.61% | 32.7% | -10.7% | -22.36% | 14.75% | 26.33% | -16.89% | -53.14% | - |
| Cost of Goods Sold | 10.73B | 10.66B | 10.69B | 10.46B | 10.83B | 9.81B | 8.61B | 9.29B | 10.82B | 9.76B | 8.62B | 9.82B | 20.51B |
| COGS % of Revenue | - | 83.06% | 87.71% | 97.75% | 84.85% | 78.92% | 91.84% | 88.55% | 80.07% | 82.85% | 92.4% | 87.51% | 85.65% |
| Gross Profit | 1.92B | 2.17B | 1.5B | 241M | 1.93B | 2.62B | 765M | 1.2B | 2.69B | 2.02B | 709M | 1.4B | 3.44B |
| Gross Margin % | 15.2% | 16.94% | 12.29% | 2.25% | 15.15% | 21.08% | 8.16% | 11.45% | 19.93% | 17.15% | 7.6% | 12.49% | 14.35% |
| Gross Profit Growth % | - | 45.06% | 521.58% | -87.53% | -26.28% | 242.75% | -36.36% | -55.38% | 33.37% | 184.91% | -49.39% | -59.24% | - |
| Operating Expenses | 1.44B | 1.42B | 332M | 265M | 236M | 258M | 233M | 307M | 279M | 312M | 324M | 410M | 1.21B |
| OpEx % of Revenue | - | 11.03% | 2.72% | 2.48% | 1.85% | 2.07% | 2.49% | 2.93% | 2.06% | 2.65% | 3.47% | 3.65% | 5.07% |
| Selling, General & Admin | 311M | 299M | 275M | 226M | 204M | 227M | 206M | 280M | 248M | 284M | 359M | 353M | 383M |
| SG&A % of Revenue | - | 2.33% | 2.26% | 2.11% | 1.6% | 1.83% | 2.2% | 2.67% | 1.83% | 2.41% | 3.85% | 3.15% | 1.6% |
| Research & Development | 22M | 24M | 57M | 39M | 32M | 31M | 27M | 27M | 31M | 32M | 33M | 69M | 95M |
| R&D % of Revenue | - | 0.19% | 0.47% | 0.36% | 0.25% | 0.25% | 0.29% | 0.26% | 0.23% | 0.27% | 0.35% | 0.61% | 0.4% |
| Other Operating Expenses | 4M | 1.09B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 484M | 758M | 1.17B | -24M | 1.7B | 2.36B | 532M | 895M | 2.42B | 1.71B | 385M | 991M | 2.22B |
| Operating Margin % | 3.82% | 5.91% | 9.57% | -0.22% | 13.3% | 19.01% | 5.68% | 8.53% | 17.87% | 14.5% | 4.13% | 8.83% | 9.29% |
| Operating Income Growth % | - | -34.99% | 4958.33% | -101.41% | -28.21% | 344.36% | -40.56% | -62.94% | 41.39% | 343.64% | -61.15% | -55.44% | - |
| EBITDA | 1.12B | 1.38B | 1.81B | 608M | 2.31B | 3.03B | 1.19B | 1.61B | 3.15B | 2.46B | 1.1B | 1.77B | 3.18B |
| EBITDA Margin % | 8.86% | 10.76% | 14.84% | 5.68% | 18.13% | 24.35% | 12.64% | 15.32% | 23.29% | 20.88% | 11.83% | 15.78% | 13.27% |
| EBITDA Growth % | -58.98% | -23.62% | 197.37% | -73.73% | -23.58% | 155.53% | -26.31% | -48.92% | 27.97% | 123.03% | -37.72% | -44.27% | - |
| D&A (Non-Cash Add-back) | 637M | 623M | 642M | 632M | 617M | 664M | 653M | 713M | 733M | 752M | 718M | 780M | 954M |
| EBIT | 1.03B | 1.22B | 445M | -477M | 808M | 1.39B | 319M | -317M | 1.75B | 1.26B | 81M | -67M | 971M |
| Net Interest Income | -140M | -158M | -156M | -107M | -106M | -195M | -146M | -121M | -122M | -104M | -243M | -270M | -309M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 140M | 158M | 156M | 107M | 106M | 195M | 146M | 121M | 122M | 104M | 243M | 270M | 309M |
| Other Income/Expense | 411M | 306M | -877M | -560M | -995M | -1.17B | -359M | -1.33B | -790M | -549M | -547M | -1.33B | -1.73B |
| Pretax Income | 895M | 1.06B | 289M | -584M | 702M | 1.2B | 173M | -438M | 1.63B | 1.16B | -162M | -337M | 497M |
| Pretax Margin % | 7.07% | 8.29% | 2.37% | -5.45% | 5.5% | 9.64% | 1.85% | -4.17% | 12.02% | 9.84% | -1.74% | -3% | 2.08% |
| Income Tax | -93M | -55M | 265M | 189M | 664M | 629M | 187M | 415M | 732M | 592M | 184M | 402M | 284M |
| Effective Tax Rate % | -10.39% | -5.17% | 91.7% | -32.36% | 94.59% | 52.46% | 108.09% | -94.75% | 45.05% | 51.08% | -113.58% | -119.29% | 57.14% |
| Net Income | 1.03B | 1.16B | 60M | -651M | -123M | 429M | -170M | -1.13B | 250M | 217M | -400M | -863M | 268M |
| Net Margin % | 8.17% | 9.02% | 0.49% | -6.08% | -0.96% | 3.45% | -1.81% | -10.72% | 1.85% | 1.84% | -4.29% | -7.69% | 1.12% |
| Net Income Growth % | 20.23% | 1828.33% | 109.22% | -429.27% | -128.67% | 352.35% | 84.89% | -550% | 15.21% | 154.25% | 53.65% | -422.01% | - |
| Net Income (Continuing) | 988M | 1.12B | 24M | -773M | 38M | 570M | -14M | -853M | 893M | 559M | -346M | -739M | 177M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 65M | 76M | 0 | 1.59B | 1.51B | 1.61B | 1.71B | 1.77B | 1.97B | 2.27B | 2.04B | 2.07B | 2.47B |
| EPS (Diluted) | 3.89 | 4.44 | 0.28 | -3.65 | -0.57 | 2.26 | -0.91 | -6.07 | 1.20 | 1.16 | -2.19 | -4.73 | -1.40 |
| EPS Growth % | 20.18% | 1485.71% | 107.67% | -540.35% | -125.22% | 348.35% | 85.01% | -605.83% | 3.45% | 152.97% | 53.7% | -237.86% | - |
| EPS (Basic) | - | 4.47 | 0.28 | -3.65 | -0.57 | 2.30 | -0.91 | -6.07 | 1.22 | 1.18 | -2.19 | -4.73 | -1.40 |
| Diluted Shares Outstanding | 265.69M | 263.3M | 214.05M | 178M | 181M | 190M | 186M | 185M | 188.53M | 186.98M | 182.54M | 182.4M | 182.4M |
| Basic Shares Outstanding | 263.65M | 260.93M | 212.42M | 178M | 181M | 186M | 186M | 185M | 186.23M | 184.42M | 182.54M | 182.4M | 182.4M |
| Dividend Payout Ratio | - | 8.99% | 148.33% | - | - | 4.43% | - | - | - | - | - | - | - |
Commodity price volatility
As reported in recent financial statements, Alcoa's top-line performance exhibits significant volatility, with revenue growth fluctuating from a 53.2% surge in 2024Q4 to a 5.2% contraction by 2026Q1, reflecting the company's high sensitivity to LME aluminum benchmarks and broader industrial production cycles across global markets.
The erratic revenue trajectory suggests that Alcoa remains a price-taker rather than a price-setter, with top-line results heavily dictated by external commodity indices. Investors should monitor whether the recent acquisition of Alumina Limited provides enough structural control to dampen this cyclicality or if the company will continue to experience sharp revenue swings tied to global macroeconomic shifts.
Based on the provided income statement data, Alcoa's gross margin has experienced extreme variance, ranging from a low of 0.3% in 2023Q4 to a peak of 27.8% in 2024Q4, highlighting the company's vulnerability to fluctuations in energy costs and raw material pricing benchmarks.
The wide margin spread indicates that Alcoa's profitability is highly leveraged to the spread between LME aluminum prices and volatile input costs like energy and caustic soda. This structural sensitivity suggests that even minor shifts in regional energy pricing can disproportionately impact the company's ability to maintain consistent profitability across its smelting operations.
According to the quarterly income data, Alcoa's operating income has demonstrated significant instability, swinging from a $1.0 billion profit in 2024Q4 to a $112 million loss in 2025Q4, which suggests that the company's fixed-cost structure provides limited protection during periods of declining commodity prices.
The lack of consistent operating leverage implies that SG&A and other overhead costs are not scaling efficiently relative to gross profit fluctuations. This may indicate that the company's high-fixed-cost base, particularly regarding its aging refining and smelting assets, creates a significant drag on operating performance whenever utilization rates or commodity prices soften.
Analysis of the income statement reveals that Alcoa's net income is frequently bolstered by non-operating items, as evidenced by the 2025Q4 period where the company reported a $213 million net profit despite an operating loss of $112 million, warranting caution regarding the quality of earnings.
Short-sellers may focus on the disconnect between operating performance and bottom-line results, which often appears to be driven by restructuring charges or other non-recurring items. Investors should investigate whether the company's reliance on these non-operating gains is a sustainable strategy or if it masks underlying operational weaknesses in the core aluminum and alumina segments.
Quick answers to the most common questions about buying AA stock.
For fiscal year 2025, Alcoa Corporation (AA) reported total revenue of $12.83B. This represents a 46.4% decline compared to $23.95B in 2014.
Alcoa Corporation (AA) is profitable, generating $1.16B in net income for the fiscal year ending 2025 with a net profit margin of 9.0%.
Alcoa Corporation (AA) reported an operating income of $758.0M, resulting in an operating profit margin of 5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Alcoa Corporation (AA) generated $2.17B in gross profit for the year, representing a gross profit margin of 16.9%. This demonstrates the company's core pricing power and production efficiency.