Alcoa (NYSE: AA) books $890M charge as it permanently shuts Kwinana alumina refinery

Rhea-AI Filing Summary

Alcoa Corporation approved the permanent closure of its Kwinana alumina refinery in Western Australia, effective immediately. The refinery has been fully curtailed since June 2024 and has an annual nameplate capacity of 2.2 million metric tons.

In the third quarter of 2025, Alcoa will record total restructuring and related charges of approximately $890 million (about $623 million after tax, or $2.41 per share) tied to the closure, including approximately $375 million of non-cash impairment charges. The charges comprise about $425 million for asset retirement obligations and environmental remediation, $265 million of asset impairments, $110 million to write off remaining net book value of various assets, and $90 million of other costs.

Total cash outlays related to the closure are expected to approximate $600 million over the next six years, including about $75 million in the fourth quarter of 2025 for restructuring costs of $45 million and asset retirement obligations of $30 million. The refinery currently has approximately 220 employees, with headcount to be reduced during 2026 as closure activities progress, while some employees will stay on beyond 2026 to prepare the site for future redevelopment.

Positive

• None.

Negative

• Significant restructuring charges and cash costs: Alcoa expects approximately $890 million of restructuring and related charges in Q3 2025, with about $600 million of cash outlays over six years tied to closing the Kwinana refinery.
• Permanent loss of alumina capacity: The closure removes a refinery with 2.2 million metric tons of annual nameplate capacity, indicating a lasting reduction in the company’s alumina production footprint at this site.

Insights

Industrial metals equity analyst

Alcoa is taking a large, mostly non-cash hit to exit a high-cost alumina asset.

The company is permanently closing its Kwinana alumina refinery, which has 2.2 million metric tons of annual nameplate capacity. This follows a full curtailment since June 2024 and reflects issues such as age, scale, operating costs, market conditions, and bauxite grade challenges.

The move triggers approximately $890 million in restructuring and related charges in Q3 2025, including about $375 million in non-cash impairments. Cash outlays are expected to total around $600 million over six years, with $75 million concentrated in Q4 2025. These figures suggest a front-loaded accounting impact but a more extended cash impact.

The refinery employs about 220 people, with reductions planned during 2026 and some staff retained longer for redevelopment preparation. Future disclosures in company filings may clarify how the lost capacity is balanced with other alumina assets and market demand, which will frame the long-term operational impact.

8-K Event Classification

2 items: 2.05, 2.06

2 items

Item 2.05 Costs Associated with Exit or Disposal Activities Financial

The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.

Item 2.06 Material Impairments Financial

The company concluded that a material charge for impairment of assets (goodwill, intangibles, etc.) is required.

Understanding 8-K Material Events →

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 29, 2025

ALCOA CORPORATION

(Exact name of registrant as specified in its charter)

Delaware			1-37816	81-1789115
(State or other jurisdiction of incorporation)			(Commission File Number)	(IRS Employer Identification No.)
201 Isabella Street, Suite 500
Pittsburgh, Pennsylvania				15212-5858
(Address of principal executive offices)				(Zip Code)

Registrant’s Telephone Number, including area code: (412) 315-2900

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	AA	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.05 Costs Associated with Exit or Disposal Activities.

On September 29, 2025, Alcoa Corporation (“Alcoa” or the “Company”) approved the permanent closure of the Company’s Kwinana alumina refinery (the “Refinery”) located in Western Australia, effective immediately. The Refinery has been fully curtailed since June 2024. The Refinery has an annual nameplate capacity of 2.2 million metric tons. The Company’s decision to permanently close the Refinery was made based on a variety of factors, including the Refinery’s age, scale and operating costs, market conditions, and bauxite grade challenges. Demolition and remediation activities are expected to begin in 2026 and continue over the next six years.

In the third quarter of 2025, the Company will record total restructuring and related charges of approximately $890 million ($623 million (after-tax), or $2.41 per share) related to the permanent closure of the Refinery, including approximately $375 million of non-cash impairment charges. The charges include: approximately $425 million for asset retirement obligations and environmental remediation, approximately $265 million of asset impairments, approximately $110 million to write off the remaining net book value of various assets, and approximately $90 million related to other costs. Total cash outlays related to the permanent closure of the site are expected to approximate $600 million over the next six years (which includes existing asset retirement obligations and employee-related liabilities), with approximately $75 million to be spent in the fourth quarter of 2025 for restructuring costs of $45 million and asset retirement obligations of $30 million.

The Refinery currently has approximately 220 employees; this number will be reduced during 2026 as the closure progresses. Certain employees will remain beyond 2026 to prepare the site for future redevelopment. Associated severance costs of $41 million were previously recorded in the first quarter of 2024.

Item 2.06 Material Impairments.

The disclosure under Item 2.05 is incorporated by reference into this Item 2.06.

Cautionary Statement on Forward-Looking Statements

This Current Report on Form 8-K contains statements that relate to future events and expectations, including those relating to the permanent closure of the Refinery and associated demolition and remediation activities and the Company’s expectations regarding the timing of the closure activities and types and estimates of associated charges, costs and financial impact, and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “aim,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “plans,” “potential,” “projects,” “reach,” “seeks,” “sees,” “should,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Factors which could cause actual results to differ from such forward-looking statements include, but are not limited to, industry, global, economic and other conditions, as well as other factors, that could affect the closure including the amount and timing of associated charges, costs, and financial impact described herein. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in Alcoa’s filings with the Securities and Exchange Commission. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ALCOA CORPORATION
Date:	September 29, 2025	By:		/s/ Marissa P. Earnest
				Marissa P. Earnest Senior Vice President, General Counsel – North America Operations, and Secretary

FAQ

What did Alcoa (AA) announce regarding the Kwinana alumina refinery?

Alcoa approved the permanent closure of its Kwinana alumina refinery in Western Australia, effective immediately. The refinery, fully curtailed since June 2024, had an annual nameplate capacity of 2.2 million metric tons and faced age, cost, market, and bauxite grade challenges.

How large are the restructuring charges Alcoa (AA) will record for the Kwinana closure?

Alcoa expects total restructuring and related charges of approximately $890 million in the third quarter of 2025. This includes around $375 million of non-cash impairment charges and additional amounts for asset retirement, environmental remediation, asset write-offs, and other closure-related costs.

What cash outlays will Alcoa (AA) incur from closing the Kwinana refinery?

Total cash outlays tied to the permanent closure are expected to approximate $600 million over the next six years. This includes about $75 million in the fourth quarter of 2025, split between $45 million of restructuring costs and $30 million for asset retirement obligations at the site.

How will Alcoa’s (AA) earnings be affected by the Kwinana closure charges?

In the third quarter of 2025, Alcoa expects restructuring and related charges of about $890 million, or roughly $623 million after tax. The company estimates this equates to $2.41 per share, reflecting the accounting impact of permanently closing the Kwinana alumina refinery.

How many employees are impacted by the Alcoa (AA) Kwinana refinery closure?

The Kwinana refinery currently has approximately 220 employees, with headcount scheduled to be reduced during 2026 as closure activities progress. Certain employees will remain beyond 2026 to assist in demolition, remediation, and preparing the site for potential future redevelopment.

What types of costs are included in Alcoa’s (AA) Kwinana closure charges?

The charges include about $425 million for asset retirement obligations and environmental remediation, $265 million of asset impairments, $110 million to write off remaining net book value, and $90 million of other costs. Previously recorded severance of $41 million is also associated with this closure.