Norsk Hydro (NHY) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA reached NOK 9.5 billion in Q1 2025, with free cash flow of NOK 1.3 billion and adjusted RoaCE at 10.7%, driven by higher alumina and aluminium prices, positive currency effects, and strong upstream results, offset by higher raw material costs and weaker Extrusions and Metal Markets.

• Net income reached NOK 5,861 million, including NOK 1,324 million in unrealized derivative gains and NOK 1,708 million in foreign exchange gains, offset by NOK 282 million in impairments and NOK 84 million in closure costs.

• Major investments include NOK 1.65 billion in a new wire rod casthouse at Karmøy and a long-term offtake agreement with NKT valued at approximately EUR 1 billion.

• Ongoing cost improvements, decarbonization, and portfolio restructuring, including plant closures and capacity curtailments in Extrusions.

• Limited direct tariff exposure, but economic uncertainty, global trade risks, and weak downstream demand persist.

Financial highlights

• Q1 2025 revenue was NOK 57,094 million, up 20% year-over-year and 4% sequentially.

• Adjusted EBITDA increased to NOK 9,516 million from NOK 5,411 million in Q1 2024 and NOK 7,701 million in Q4 2024.

• Adjusted net income was NOK 5,040 million, with adjusted EPS at NOK 1.63, compared to NOK 2,596 million and 0.93 in Q1 2024.

• Net debt decreased to NOK 15.1 billion, and adjusted net debt to NOK 21.8 billion.

• Investments totaled NOK 2,318 million, down 26% year-over-year.

Outlook and guidance

• Hydro Extrusions revised its 2025 adjusted EBITDA outlook downward to NOK 4.5 billion, with a possible range of NOK 3.5–4.5 billion if demand growth is delayed.

• Bauxite & Alumina expects lower alumina prices, higher sales volume, and increased fixed and raw material costs in Q2 2025.

• Aluminium Metal sees ~65% of Q2 production priced at USD 2,617/mt, with lower alumina costs but higher carbon costs and negative currency effects.

• Energy segment expects lower production and seasonally lower prices, with ongoing price and volume uncertainty.

• CapEx guidance maintained at NOK 15 billion for 2025 and 2026, with flexibility under review; tax rate guided at 30%.