Norsk Hydro (NHY) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 adjusted EBITDA of NOK 5.6 billion, with free cash flow of NOK 4.6 billion and adjusted RoaCE for the year at 10.2%, surpassing the 10% target.

• Solid upstream performance and cost control drove results, while strategic workforce reduction of 850 employees and closure of five European extrusion plants were completed.

• Board proposed a dividend of NOK 3.0 per share, representing 60% of adjusted net income, totaling NOK 5.9 billion.

• Two new long-term power contracts and a major hydropower investment in Norway secured energy supply for smelters.

• No fatalities or life-changing injuries in 2025; record low injury rates maintained.

Financial highlights

• Q4 2025 revenue was NOK 47.2 billion, down 14% year-over-year, mainly due to lower alumina prices.

• Adjusted EBITDA was NOK 5.6 billion, down from NOK 7.7 billion in Q4 2024; reported EBITDA was NOK 2 billion, with NOK 3.6 billion in adjusting items.

• Adjusted net income for Q4 2025 was NOK 1.7 billion, down from NOK 2.6 billion in Q4 2024; reported net income was negative NOK 2.2 billion due to significant non-recurring items.

• Adjusted EPS for Q4 2025 was NOK 0.70.

• Net debt decreased by NOK 3.9 billion during Q4 2025, ending at NOK 18.2 billion.

Outlook and guidance

• Bauxite and Alumina: Q1 production volumes expected to decline seasonally due to fewer operating days and maintenance; realized prices to continue correcting.

• Aluminum Metal: 70% of Q1 2026 production hedged at $2,803/ton; raw material and fixed costs expected to rise.

• Extrusions: European sales stable, North American sales to decrease slightly more than market; margins stable, some improvement in North America.

• Energy: Q1 production to decrease due to maintenance; prices expected to rise seasonally, but price area gains to decline.

• Capital expenditure guidance for 2026 remains conservative amid market uncertainty.