| Segment Information |
E. Segment Information – Alcoa Corporation is a producer of bauxite, alumina, and aluminum products. The Company has two operating and reportable segments: (i) Alumina and (ii) Aluminum. The primary measure of performance reported to Alcoa Corporation’s President and Chief Executive Officer, identified as the Company’s chief operating decision maker (CODM), is Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) for each segment. The Company calculates Segment Adjusted EBITDA as Total sales (third-party and intersegment) minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; and Research and development expenses. Alcoa Corporation’s Segment Adjusted EBITDA may not be comparable to similarly titled measures of other companies. The CODM regularly reviews Segment Adjusted EBITDA to assess performance and allocate resources (including employees, property, and financial or capital resources) in the planning and strategic review process. The CODM evaluates actual results versus the annual plan, most recent forecast, and prior period results when making decisions about allocating resources. The operating results, capital expenditures, and assets of Alcoa Corporation’s reportable segments were as follows (differences between segment totals and consolidated amounts are in Corporate):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alumina |
|
|
Aluminum |
|
|
Total |
|
Second quarter ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
Sales: |
|
|
|
|
|
|
|
|
|
|
Third-party sales |
|
|
$ |
637 |
|
|
$ |
3,330 |
|
|
$ |
3,967 |
|
Intersegment sales |
|
|
|
453 |
|
|
|
5 |
|
|
|
458 |
|
Total sales |
|
|
$ |
1,090 |
|
|
$ |
3,335 |
|
|
$ |
4,425 |
|
Adjusted operating costs(1) |
|
|
|
843 |
|
|
|
1,688 |
|
|
|
2,531 |
|
Other segment items(2) |
|
|
|
343 |
|
|
|
574 |
|
|
|
917 |
|
Segment Adjusted EBITDA |
|
|
$ |
(96 |
) |
|
$ |
1,073 |
|
|
$ |
977 |
|
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, and amortization |
|
|
$ |
96 |
|
|
$ |
71 |
|
|
$ |
167 |
|
Equity income |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Capital expenditures |
|
|
|
106 |
|
|
|
73 |
|
|
|
179 |
|
Second quarter ended June 30, 2025 |
|
|
|
|
|
|
|
|
|
|
Sales: |
|
|
|
|
|
|
|
|
|
|
Third-party sales |
|
|
$ |
1,051 |
|
|
$ |
1,956 |
|
|
$ |
3,007 |
|
Intersegment sales |
|
|
|
467 |
|
|
|
5 |
|
|
|
472 |
|
Total sales |
|
|
$ |
1,518 |
|
|
$ |
1,961 |
|
|
$ |
3,479 |
|
Adjusted operating costs(1) |
|
|
|
770 |
|
|
|
1,578 |
|
|
|
2,348 |
|
Other segment items(2) |
|
|
|
609 |
|
|
|
286 |
|
|
|
895 |
|
Segment Adjusted EBITDA |
|
|
$ |
139 |
|
|
$ |
97 |
|
|
$ |
236 |
|
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, and amortization |
|
|
$ |
80 |
|
|
$ |
66 |
|
|
$ |
146 |
|
Equity (loss) income |
|
|
|
(9 |
) |
|
|
3 |
|
|
|
(6 |
) |
Capital expenditures |
|
|
|
73 |
|
|
|
54 |
|
|
|
127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alumina |
|
|
Aluminum |
|
|
Total |
|
Six months ended June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
Sales: |
|
|
|
|
|
|
|
|
|
|
Third-party sales |
|
|
$ |
1,294 |
|
|
$ |
5,866 |
|
|
$ |
7,160 |
|
Intersegment sales |
|
|
|
898 |
|
|
|
10 |
|
|
|
908 |
|
Total sales |
|
|
$ |
2,192 |
|
|
$ |
5,876 |
|
|
$ |
8,068 |
|
Adjusted operating costs(1) |
|
|
|
1,580 |
|
|
|
3,118 |
|
|
|
4,698 |
|
Other segment items(2) |
|
|
|
748 |
|
|
|
991 |
|
|
|
1,739 |
|
Segment Adjusted EBITDA |
|
|
$ |
(136 |
) |
|
$ |
1,767 |
|
|
$ |
1,631 |
|
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, and amortization |
|
|
$ |
182 |
|
|
$ |
142 |
|
|
$ |
324 |
|
Equity income |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Capital expenditures |
|
|
|
170 |
|
|
|
119 |
|
|
|
289 |
|
Six months ended June 30, 2025 |
|
|
|
|
|
|
|
|
|
|
Sales: |
|
|
|
|
|
|
|
|
|
|
Third-party sales |
|
|
$ |
2,514 |
|
|
$ |
3,857 |
|
|
$ |
6,371 |
|
Intersegment sales |
|
|
|
1,179 |
|
|
|
9 |
|
|
|
1,188 |
|
Total sales |
|
|
$ |
3,693 |
|
|
$ |
3,866 |
|
|
$ |
7,559 |
|
Adjusted operating costs(1) |
|
|
|
1,493 |
|
|
|
3,152 |
|
|
|
4,645 |
|
Other segment items(2) |
|
|
|
1,397 |
|
|
|
483 |
|
|
|
1,880 |
|
Segment Adjusted EBITDA |
|
|
$ |
803 |
|
|
$ |
231 |
|
|
$ |
1,034 |
|
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, and amortization |
|
|
$ |
156 |
|
|
$ |
133 |
|
|
$ |
289 |
|
Equity income (loss) |
|
|
|
6 |
|
|
|
(3 |
) |
|
|
3 |
|
Capital expenditures |
|
|
|
126 |
|
|
|
91 |
|
|
|
217 |
|
(1)Adjusted operating costs include all production related costs for alumina or aluminum produced and shipped: raw materials consumed; conversion costs, such as labor, materials, and utilities; and plant administrative expenses. (2)Other segment items include costs associated with trading activity, the Alumina segment’s purchase of bauxite from offtake or other supply agreements, the Alumina segment’s commercial shipping services, and the Aluminum segment’s energy assets; other direct and non-production related charges, including tariff costs; Selling, general administrative, and other expenses; and Research and development expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alumina |
|
|
Aluminum |
|
|
Total |
|
June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
Equity investments |
|
|
$ |
277 |
|
|
$ |
247 |
|
|
$ |
524 |
|
Segment assets |
|
|
|
5,901 |
|
|
|
6,856 |
|
|
|
12,757 |
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
Equity investments |
|
|
$ |
243 |
|
|
$ |
230 |
|
|
$ |
473 |
|
Segment assets |
|
|
|
5,671 |
|
|
|
6,151 |
|
|
|
11,822 |
|
The following table reconciles Total Segment Adjusted EBITDA to Consolidated net income attributable to Alcoa Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter ended
June 30, |
|
Six months ended
June 30, |
|
|
|
2026 |
|
|
2025 |
|
2026 |
|
|
2025 |
|
Total Segment Adjusted EBITDA |
|
$ |
977 |
|
|
$ |
236 |
|
$ |
1,631 |
|
|
$ |
1,034 |
|
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
Transformation(1) |
|
|
(23 |
) |
|
|
(21 |
) |
|
(50 |
) |
|
|
(33 |
) |
Intersegment eliminations |
|
|
2 |
|
|
|
135 |
|
|
9 |
|
|
|
238 |
|
Corporate expenses(2) |
|
|
(60 |
) |
|
|
(45 |
) |
|
(99 |
) |
|
|
(82 |
) |
Provision for depreciation, depletion, and amortization |
|
|
(173 |
) |
|
|
(153 |
) |
|
(335 |
) |
|
|
(301 |
) |
Restructuring and other charges, net (D) |
|
|
4 |
|
|
|
(14 |
) |
|
(14 |
) |
|
|
(19 |
) |
Interest expense |
|
|
(36 |
) |
|
|
(56 |
) |
|
(71 |
) |
|
|
(109 |
) |
Other (expenses) income, net (O) |
|
|
(200 |
) |
|
|
112 |
|
|
(74 |
) |
|
|
138 |
|
Other(3) |
|
|
(9 |
) |
|
|
(33 |
) |
|
(16 |
) |
|
|
(37 |
) |
Consolidated income before income taxes |
|
|
482 |
|
|
|
161 |
|
|
981 |
|
|
|
829 |
|
Provision for income taxes |
|
|
(73 |
) |
|
|
(10 |
) |
|
(155 |
) |
|
|
(130 |
) |
Net (income) loss attributable to noncontrolling interest |
|
|
(2 |
) |
|
|
13 |
|
|
6 |
|
|
|
13 |
|
Consolidated net income attributable to Alcoa Corporation |
|
$ |
407 |
|
|
$ |
164 |
|
$ |
832 |
|
|
$ |
712 |
|
(1)Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. (2)Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. (3)Other includes certain items that are not included in the Adjusted EBITDA of the reportable segments. The following table details Alcoa Corporation’s Sales by product division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second quarter ended
June 30, |
|
|
Six months ended
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Aluminum |
|
$ |
3,446 |
|
|
$ |
1,993 |
|
|
$ |
6,028 |
|
|
$ |
3,948 |
|
Alumina |
|
|
538 |
|
|
|
830 |
|
|
|
1,059 |
|
|
|
2,041 |
|
Bauxite |
|
|
76 |
|
|
|
203 |
|
|
|
194 |
|
|
|
445 |
|
Energy |
|
|
52 |
|
|
|
38 |
|
|
|
129 |
|
|
|
71 |
|
Other(1) |
|
|
(146 |
) |
|
|
(46 |
) |
|
|
(251 |
) |
|
|
(118 |
) |
|
|
$ |
3,966 |
|
|
$ |
3,018 |
|
|
$ |
7,159 |
|
|
$ |
6,387 |
|
(1)Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum (see Note L). |