Segment Information

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

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 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 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
Third quarter ended September 30, 2025
Sales:
Third-party sales	$	954	$	2,040		$	2,994
Intersegment sales		474		5			479
Total sales	$	1,428	$	2,045		$	3,473
Adjusted operating costs(1)		779		1,406			2,185
Other segment items(2)		582		332			914
Segment Adjusted EBITDA	$	67	$	307		$	374
Supplemental information:
Depreciation, depletion, and amortization	$	88	$	67		$	155
Equity income		—		—			—
Capital expenditures		75		67			142
Third quarter ended September 30, 2024
Sales:
Third-party sales	$	1,096	$	1,802		$	2,898
Intersegment sales		565		5			570
Total sales	$	1,661	$	1,807		$	3,468
Adjusted operating costs(1)		734		1,353			2,087
Other segment items(2)		560		274			834
Segment Adjusted EBITDA	$	367	$	180		$	547
Supplemental information:
Depreciation, depletion, and amortization	$	85	$	68		$	153
Equity income (loss)		6		(11	)		(5	)
Capital expenditures		100		42			142

	Alumina			Aluminum			Total
Nine months ended September 30, 2025
Sales:
Third-party sales	$	3,468		$	5,897		$	9,365
Intersegment sales		1,653			14			1,667
Total sales	$	5,121		$	5,911		$	11,032
Adjusted operating costs(1)		2,272			4,558			6,830
Other segment items(2)		1,979			815			2,794
Segment Adjusted EBITDA	$	870		$	538		$	1,408
Supplemental information:
Depreciation, depletion, and amortization	$	244		$	200		$	444
Equity income (loss)		6			(3	)		3
Capital expenditures		201			158			359
Nine months ended September 30, 2024
Sales:
Third-party sales	$	3,067		$	5,335		$	8,402
Intersegment sales		1,417			12			1,429
Total sales	$	4,484		$	5,347		$	9,831
Adjusted operating costs(1)		2,344			3,974			6,318
Other segment items(2)		1,448			910			2,358
Segment Adjusted EBITDA	$	692		$	463		$	1,155
Supplemental information:
Depreciation, depletion, and amortization	$	262		$	204		$	466
Equity (loss) income		(3	)		12			9
Capital expenditures		266			132			398

(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
September 30, 2025
Assets:
Equity investments	$	240	$	236	$	476
Segment assets		5,728		6,090		11,818
December 31, 2024
Assets:
Equity investments	$	420	$	546	$	966
Segment assets		6,138		6,129		12,267

The following table reconciles Total Segment Adjusted EBITDA to Consolidated net income (loss) attributable to Alcoa Corporation:

	Third quarter ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Total Segment Adjusted EBITDA	$	374		$	547		$	1,408		$	1,155
Unallocated amounts:
Transformation(1)		(20	)		(14	)		(53	)		(44	)
Intersegment eliminations		(39	)		(38	)		199			(75	)
Corporate expenses(2)		(42	)		(39	)		(124	)		(114	)
Provision for depreciation, depletion, and amortization		(160	)		(159	)		(461	)		(483	)
Restructuring and other charges, net (D)		(885	)		(30	)		(904	)		(250	)
Interest expense		(33	)		(44	)		(142	)		(111	)
Other income (expenses), net (Q)		1,034			(12	)		1,172			(49	)
Other(3)		(62	)		(27	)		(99	)		(78	)
Consolidated income (loss) before income taxes		167			184			996			(49	)
Benefit from (provision for) income taxes		51			(86	)		(79	)		(129	)
Net loss (income) attributable to noncontrolling interest		14			(8	)		27			36
Consolidated net income (loss) attributable to Alcoa Corporation	$	232		$	90		$	944		$	(142	)

(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:

	Third quarter ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Aluminum	$	2,068		$	1,836		$	6,016		$	5,431
Alumina		829			996			2,870			2,790
Bauxite		112			92			557			249
Energy		57			37			128			99
Other(1)		(71	)		(57	)		(189	)		(160	)
	$	2,995		$	2,904		$	9,382		$	8,409

(1)Other includes realized gains and losses related to embedded derivative instruments designated as cash flow hedges of forward sales of aluminum (see Note M).