Norsk Hydro (NHY) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q3 2025 was NOK 6.0 billion, with free cash flow of NOK 2.2 billion and adjusted ROCE at 11%, reflecting solid performance despite lower alumina prices and a stronger NOK.

• Strategic workforce and cost reduction initiatives are underway, targeting 750 white-collar positions and NOK 1 billion in annual net run-rate savings from 2026.

• Alouette secured a long-term power contract until 2045, reinforcing energy resilience, while the battery portfolio phase-out progressed with divestments in Corvus Energy and Lithium de France.

• Legal claims in the Netherlands related to Alunorte were fully dismissed, confirming no environmental harm.

• Advancements in low-carbon and circular solutions continued, including partnerships with Mercedes-Benz and infrastructure projects using recycled aluminium.

Financial highlights

• Q3 2025 revenue was NOK 51 billion, up 1% year-over-year, with adjusted EBITDA of NOK 6.0 billion and adjusted EBIT of NOK 3.5 billion.

• Adjusted net income was NOK 1.9 billion, down from NOK 3.5 billion year-over-year, and adjusted EPS was NOK 1.02.

• Net debt decreased by NOK 1.9 billion during Q3, ending at NOK 13.6 billion, with adjusted net debt at NOK 21.1 billion.

• Free cash flow for Q3 was NOK 2.2 billion.

• Adjusted EBITDA margin for Bauxite & Alumina was 27.2%, Aluminium Metal 19.5%, and Extrusions 5.8%.

Outlook and guidance

• CapEx guidance for 2025 remains at NOK 13.5 billion, with Q4 typically seeing the highest maintenance and sustaining capital.

• Q4 working capital guidance is maintained at NOK 30 billion at year-end.

• Market conditions remain challenging, especially in extrusions and recycling, with continued uncertainty in demand and pricing.

• Metal Markets commercial EBITDA guidance for 2025 reduced to NOK 200–400 million.

• Alouette's long-term power contract ensures energy resilience; Tomago smelter faces challenges securing renewable power post-2028.