Earnings Per Share

6 Months Ended

Jun. 30, 2025

F. Earnings Per Share

Basic earnings per share (EPS) is calculated using the two-class method. Under the two-class method, earnings are allocated to Alcoa common stock and preferred stock based on the pro-rata share of each class outstanding. Diluted EPS assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. Diluted EPS is calculated under both the two-class and if-converted methods, and the more dilutive amount is reported.

In the second quarter and the six-month period of 2025, dividends paid on preferred stock were $1 (both periods) and undistributed earnings of $1 and $10, respectively, were allocated to preferred stock under the two-class method.

The share information used to compute basic and diluted EPS attributable to Alcoa Corporation common shareholders was as follows (shares in millions):


	Second quarter ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Average shares outstanding – basic		259		180		259		179
Effect of dilutive securities:
Stock options		—		—		—		—
Stock units		1		1		1		—
Average shares outstanding – diluted		260		181		260		179

In the six-month period of 2024, basic average shares outstanding and diluted average shares outstanding were the same because the effect of potential shares of common stock was anti-dilutive. Had Alcoa generated net income in the six-month period of 2024, two million common share equivalents related to three million outstanding stock units and stock options combined would have been included in diluted average shares outstanding for the period.