Alcoa (AA) risk factors, FY2025 10-K

Other

1. 01(dollars in millions, except per-metric ton and per-share amounts)New

Industry and Global Market Risks

1. 02The aluminum industry and aluminum end-use markets are highly cyclical and are influenced by several factors, including global economic conditions, the Chinese market, and overall consumer confidence
2. 03We have in the past and could in the future be materially adversely affected by volatility and declines in aluminum and alumina demand and prices, including global, regional, and product-specific prices, or by significant changes in production costs which are linked to LME or other commodities38% rewritten
3. 04Market-driven balancing of global aluminum supply and demand may be disrupted by non-market forces50% rewritten
4. 05Our participation in increasingly competitive and complex global markets exposes us to risks, including legal and regulatory risks and changes in conditions beyond our control, which could adversely affect our business, financial condition, or results of operations
5. 06Unexpected events, accidents, or environmental incidents, including natural disasters
6. 07We have in the past been and may in the future be unable to obtain, maintain, or renew permits or approvals necessary for our mining operations, which could materially adversely affect our operations and profitability31% rewritten
7. 08Our operations and profitability have in the past and could in the future be impacted by rising energy costs and interruptions or uncertainty in energy supplies43% rewritten
8. 09Our operations and profitability have been and could continue to be adversely affected by unfavorable changes in the cost, quality, or availability of raw materials or other key inputs, or by disruptions in the supply chain
9. 10Our global operations expose us to risks related to economic, political, and social conditions, including the impact of trade policies, tariffs, and adverse industry publicity, which may negatively impact our business and our ability to operate in certain locations36% rewritten
10. 11We may be exposed to significant legal proceedings, investigations, or changes in foreign and/or U.S. federal, state, or local laws, regulations, or policies
11. 12Changes in tax laws or exposure to additional tax liabilities could affect our future profitability43% rewritten
12. 13Climate change, climate change legislation or regulations, and efforts to reduce greenhouse gas (GHG) emissions and build operational resilience to extreme weather conditions may adversely impact our operations and markets
13. 14Our business, financial condition, and results of operations could be adversely affected by disruptions in the global economy caused by ongoing regional conflicts
14. 15We are exposed to fluctuations in foreign currency exchange rates and interest rates, as well as inflation and other economic factors in the countries in which we operate
15. 16We face significant competition globally within and beyond the aluminum industry, which may have an adverse effect on profitability
16. 17We may not achieve our strategies or expectations relating to environmental, social, and governance considerations, which could expose us to potential liabilities, increased costs, reputational harm, and other adverse effects on our business
17. 18We are subject to a broad range of health, safety, and environmental laws, regulations, and other requirements in the jurisdictions in which we operate that may expose us to substantial claims, costs, and liabilities
18. 19Our operations include impoundment structures, which could impact the environment or cause exposure to hazardous substances or other damage, which could result in material liabilities to us
19. 20The secondary listing of the Alcoa common stock on the Australian Stock Exchange (ASX) via CDIs could lead to price variations and other impacts on the price of Alcoa common stockNew
20. 21We may not be able to obtain or maintain adequate insurance coverage

Business Strategy Risks

1. 22Significant declines in the market value of our marketable securities may have a material adverse effect on our results of operations should they occurNew
2. 23Our business and growth prospects may be negatively impacted by limits on our ability to fund capital expenditures
3. 24Deterioration in our credit profile or increases in interest rates could increase our costs of borrowing money and limit our access to the capital markets and commercial credit
4. 25Specific to the notes issued by ANHBV, take any actions that would reduce our ownership of AWAC entities below an agreed level96% rewritten
5. 26of dividends and payments to redeem, repurchase, or retire equity securities or other indebtedness, if the Company does not maintain certain financial ratiosNew
6. 27Declines in asset values or increases in liabilities, including liabilities associated with benefit plans or taxes, can reduce stockholders’ equity. A deficit in stockholders’ equity could limit our ability under Delaware law to pay dividends and repurchase shares in the future

Cybersecurity Risks

1. 28Union or workforce disputes or arrangements and other employee relations issues, as well as labor market conditions, could adversely affect our business, financial condition, or results of operations
2. 29A significant portion of our employees are represented by labor unions or worker groups in a number of countries under various collective bargaining agreements or similar arrangements with varying durations and expiration dates