By Nicholas G. Miller

Alcoa reported a higher second-quarter profit, topping analyst expectations, and said it mitigated U.S. aluminum tariff costs by redirecting Canadian aluminum to customers outside of the U.S.

The Pittsburgh aluminum producer reported $164 million in net income, or 62 cents a share, up from $20 million, or 11 cents a share, in the prior-year quarter.

Adjusted earnings were 39 cents a share, compared with the 32 cents expected by analysts.

Alcoa reported $3.02 billion in revenue, up from $2.91 billion in the year prior. Wall Street expected $2.91 billion in revenue.

The company said it incurred $115 million in U.S. aluminum tariff costs. President Trump imposed a 25% tariff on aluminum in March, raising it to 50% in June. Alcoa said it redirected Canadian aluminum to customers outside the U.S., while continuing advocacy among U.S. and Canadian policy makers.

The company said it expects an additional $90 million in unfavorable effects in the third quarter as a result of the U.S. tariffs.

Mining company Rio Tinto said Wednesday it had incurred $300 million in costs from U.S. tariffs on Canadian aluminum in the first half of the year, saying that U.S. aluminum prices adjusted to the 25% tariff but are not fully making up for the 50% rate.

According to a J.P. Morgan report last week, the market price of aluminum has risen 23% since the 50% tariffs were announced, "falling shy of levels necessary to incentivize imports to cover US aluminum demand." The report said that could lead Canadian aluminum producers to ship more aluminum to Europe, adding that the aluminum price in Europe was already down 4% since the tariff announcement.

Alcoa said its San Ciprian smelter complex, which was paused in April after a power outage in Spain, had begun to be restarted but it expected a net loss of $90 million to $110 million, or 35 cents to 42 cents a share, in 2025 as a result of the disruption.

Earlier this month, the company completed the sale of its 25.1% stake in the Ma'aden joint venture, a mining complex in Saudi Arabia for $1.35 billion. Alcoa expects a gain of $780 million in the third quarter from the sale.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

July 16, 2025 16:55 ET (20:55 GMT)

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