Pension and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2025

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

L. Pension and Other Postretirement Benefits

The components of net periodic benefit cost were as follows:

	Third quarter ended September 30,						Nine months ended September 30,
Pension benefits	2025			2024			2025			2024
Service cost	$	1		$	3		$	4		$	8
Interest cost(1)		25			27			75			81
Expected return on plan assets(1)		(30	)		(34	)		(92	)		(104	)
Recognized net actuarial loss(1)		9			7			27			23
Curtailments(2)		—			—			—			1
Settlements(2)		(1	)		—			(1	)		(1	)
Net periodic benefit cost	$	4		$	3		$	13		$	8

	Third quarter ended September 30,						Nine months ended September 30,
Other postretirement benefits	2025			2024			2025			2024
Service cost	$	—		$	1		$	1		$	2
Interest cost(1)		6			6			17			18
Recognized net actuarial loss(1)		1			1			3			4
Amortization of prior service benefit(1)		(4	)		(3	)		(10	)		(10	)
Net periodic benefit cost	$	3		$	5		$	11		$	14

(1)These amounts were reported in Other (income) expenses, net on the accompanying Statement of Consolidated Operations (see Note Q).

(2)These amounts were reported in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations and Cash Flows.

Plan Actions. In 2025, management initiated the following action to a certain pension plan:

Action #1 – In the third quarter of 2025, settlement accounting and a related plan remeasurement was triggered within Alcoa’s Australian pension plan as a result of lump sum payments to participants. Alcoa recorded a $2 decrease to Other noncurrent assets and recognized a settlement gain of $1 ($0 after-tax) in Restructuring and other charges, net on the accompanying Statement of Consolidated Operations.

Action #	Number of affected plan participants	Weighted average discount rate as of prior plan remeasurement date	Plan remeasurement date	Weighted average discount rate as of plan remeasurement date	Decrease to other noncurrent assets			Settlement gain(1)
1	~25	4.87%	September 30, 2025	4.49%	$	(2	)	$	(1	)

(1)This amount represents the net actuarial gain and was reclassified from Accumulated other comprehensive loss to Restructuring and other charges, net on the accompanying Statement of Consolidated Operations.

Funding and Cash Flows. It is Alcoa’s policy to fund amounts for defined benefit pension plans sufficient to meet the minimum requirements set forth in each applicable country’s benefits laws and tax laws, including the Employee Retirement Income Security Act of 1974 (ERISA) for U.S. plans. From time to time, the Company contributes additional amounts as deemed appropriate.

Under ERISA regulations, a plan sponsor that establishes a pre-funding balance by making discretionary contributions to a U.S. defined benefit pension plan may elect to apply all or a portion of this balance toward its minimum required contribution obligations to the related plan in future years.

In the first, second, and third quarters of 2025, management made such elections related to the Company’s U.S. plans and intends to do so for the remainder of 2025. As a result, Alcoa’s minimum required contribution to defined benefit pension plans in 2025 is estimated to be approximately $20, of which $2 was contributed to non-U.S. plans during the third quarter of 2025. In the nine-month period of 2025, $16 was contributed to non-U.S. plans.

In the third quarter and nine-month period of 2024, $4 and $14, respectively, were contributed to non-U.S. plans.