Restructuring and Other Charges, Net

6 Months Ended

Jun. 30, 2026

Restructuring and Related Activities [Abstract]

D. Restructuring and Other Charges, Net

In the second quarter and six-month period of 2026, Alcoa Corporation recorded Restructuring and other charges, net, of ($4) and $14, respectively, which were primarily comprised of:

•

A charge of $9 (both periods) to record net additional asset retirement obligations and environmental remediation at previously closed sites; and

•

A benefit of ($13) and charge of $5, respectively, for take-or-pay power contract costs at previously closed sites.

In the second quarter and six-month period of 2025, Alcoa Corporation recorded Restructuring and other charges, net, of $14 and $19, respectively, which were primarily comprised of:

•

A charge of $20 (both periods) to record net additional asset retirement obligations and environmental remediation at previously closed sites;

•

A charge of $6 and $9, respectively, for certain employee obligations related to the February 2023 updated viability agreement reached with the workers’ representatives of the San Ciprián aluminum smelter; and,

•

A net benefit of ($12) and ($10), respectively, for take-or-pay contract costs at previously closed sites.

Alcoa Corporation does not include Restructuring and other charges, net in the results of its reportable segments. The impact of allocating such charges to segment results would have been as follows:


	Second quarter ended June 30,					Six months ended June 30,
	2026			2025		2026			2025
Alumina	$	—		$	—	$	—		$	—
Aluminum		(3	)		6		(3	)		9
Segment total		(3	)		6		(3	)		9
Corporate		(1	)		8		17			10
Total Restructuring and other charges, net	$	(4	)	$	14	$	14		$	19

Activity and reserve balances for Restructuring and other charges, net related to Severance and employee termination costs and Other costs were as follows:


	Severance and employee termination costs			Other costs			Total
Balance at December 31, 2024	$	13		$	168		$	181
Restructuring and other charges, net		2			107			109
Cash payments		(4	)		(208	)		(212	)
Reversals and other		—			7			7
Balance at December 31, 2025		11			74			85
Restructuring and other charges, net		—			5			5
Cash payments		(7	)		(27	)		(34	)
Reversals and other		—			1			1
Balance at June 30, 2026	$	4		$	53		$	57

Restructuring and other charges, net related to Accrued pension benefits, Accrued other postretirement benefits, Asset retirement obligations, Environmental remediation, and Other noncurrent assets are excluded from the above activity and balances. Reversals and other includes reversals of previously recorded liabilities and foreign currency translation impacts.

The noncurrent portion of the reserve was $20 and $34 at June 30, 2026 and December 31, 2025, respectively.