Alcoa Returns to Profit in 2024 Amid Higher Aluminum Prices and Cost Reductions
Alcoa, the largest aluminum producer in the United States, reported a net profit of $60 million for 2024, reversing a loss of $651 million from the previous year. The company attributed its improved performance to lower raw material and energy costs, alongside higher alumina and aluminum prices, though these gains were partially offset by increased restructuring charges.
In 2024, Alcoa recorded $341 million in restructuring charges, an 85.3% rise compared to 2023. Total revenue for the year reached $11.895 billion, a 12.7% increase from the prior year. The company also saw a strong fourth quarter, with net profit of $202 million compared to a loss of $150 million in the same period of 2023, and a 34.3% year-on-year rise in quarterly revenue to $3.486 billion.
Alcoa President and CEO William Oplinger highlighted the company’s strategic milestones in 2024, including the acquisition of Alumina Limited, the sale of its interest in the Ma'aden joint ventures, and operational improvements that contributed to production records.
Regarding its San Ciprián complex in Spain, Oplinger noted the signing of a memorandum of understanding (MoU) in January 2025 between Alcoa, the Spanish government, the regional Xunta, and IGNIS EQT. The agreement outlines collaboration to enhance the long-term prospects of the facility.
Looking ahead to 2025, Alcoa projects alumina production to decline to between 9.5 and 9.7 million metric tons due to reduced output at the Kwinana refinery. However, alumina shipments are expected to remain steady at 13.1 to 13.3 million metric tons. Aluminum production is forecasted to increase to between 2.3 and 2.5 million metric tons, with shipments projected at 2.6 to 2.8 million metric tons.
