Norsk Hydro (NHY) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA for Q1 2026 was NOK 8.7 billion, driven by higher aluminium prices, strong upstream and recycling performance, but resulted in negative free cash flow of NOK 4 billion due to increased operating capital.

• Adjusted ROACE for the last twelve months was 10.1%, exceeding the 10% target.

• HalZero test facility was commissioned, advancing decarbonization and technology initiatives.

• Highest recycling results since 2023, supported by favorable market spreads and strong U.S. margins.

• Qatalum joint venture in Qatar operating at reduced capacity due to Middle East tensions; resilience and employee safety remain priorities.

Financial highlights

• Revenue for Q1 2026 was NOK 50.4 billion, down 12% year-over-year.

• Adjusted EBITDA was NOK 8.7 billion; reported EBITDA NOK 7.1 billion.

• Adjusted EBIT NOK 6.1 billion; reported EBIT NOK 4.4 billion.

• Adjusted net income was NOK 4.1 billion, up from NOK 4 billion year-over-year and NOK 1.7 billion sequentially.

• Adjusted EPS NOK 2.07, up from NOK 1.63 in Q1 2025.

• Net debt increased by NOK 3.2 billion to NOK 21.6 billion, mainly due to higher operating capital and investments.

Outlook and guidance

• Market outlook remains volatile due to Middle East crisis, impacting aluminium supply and prices.

• Global aluminium deficit estimates increased to 1.0–1.9 million mt for 2026.

• 67% of Q2 2026 aluminium production hedged at $3,000/ton; realized premiums expected at $530–$580/ton.

• Recycling margins in the U.S. expected to remain strong, with further improvement possible in Q2.

• Energy production in Q2 expected to be well below historical levels due to low water and snow reservoirs in Norway.