Norsk Hydro: Solid results and strong performance
Hydro's adjusted EBITDA for the third quarter of 2026 was NOK 9,089 million, up from NOK 5,996 million in the same quarter last year. Higher all-in metal prices and higher alumina prices contributed positively in the quarter, along with improved earnings in Recycling and Extrusions. The strong performance was partially offset by higher anode and energy costs in Aluminium Metal, increased energy costs in Bauxite & Alumina due to gas supply disruptions, a stronger NOK vs USD, and negative price area differences in Energy.
* Alunorte resumed regular operations following temporary gas supply disruptions
* Free cash flow of NOK 1.4 billion impacted by higher metal prices and associated working capital requirements and prepayments
* First metal produced at HalZero test facility, marking important milestone for carbon-free technology track
* Commercial momentum continues for Hydro's low-carbon and recycled aluminium portfolio
* New PPAs secured, further strengthening Hydro's long-term power position
Hydro delivered strong profitability in the quarter, with adjusted earnings per share increasing from NOK 1.0 in the third quarter of 2025, to NOK 2.3 in the third quarter of 2026. Free cash flow was NOK 1.4 billion, as strong adjusted EBITDA was partly offset by higher net operating capital, primarily driven by increased metal prices and associated working capital requirements and prepayments. While this development reflects the current market environment, improving cash conversion and working capital efficiency remains a clear priority going forward. Consequently, Hydro has updated its year-end capex guiding to around NOK 12.5 billion, down from NOK 13.5 billion, and net working capital guiding to around NOK 32 billion, up from NOK 30 billion. The twelve month adjusted RoaCE ended at 12.5 percent.
"Hydro's third quarter results reflect strong operational performance amplified by market tailwinds. Record high liquid metal production from our Norwegian smelter system, combined with strong pricing throughout the quarter drove solid earnings and strong profitability. Operational excellence enables us to capture more of the upside when markets are strong and, more importantly, builds resilience when markets turn," says Eivind Kallevik, President and CEO of Hydro.
During the third quarter, disruption in natural gas supplies to Alunorte temporarily reduced production at the refinery. Through mitigating actions, including securing alternative LNG supply, Hydro maintained operational continuity and successfully restored alumina production.
Aluminium Metal benefited from higher all-in metal prices and strong operational performance, while Recycling and Extrusions delivered improved earnings supported by strong recycling margins. Hydro's Norwegian smelters increased liquid metal production to record levels, reinforcing Hydro's position as a reliable supplier of low-carbon aluminium to European customers.
In parallel, Hydro experienced continued momentum for its low-carbon and recycled products, with leading brands like CHANEL Fragrances and Beauty, General Motors, and Mercedes-Benz integrating Hydro's solutions in their product lines.
"We continue to see strong demand for our low-carbon and recycled offerings from some of the world's leading consumer brands. When brands like CHANEL Fragrances and Beauty and Mercedes-Benz choose Hydro, they place their trust in our quality, reliability, and ability to help them achieve their ambitions. That trust has commercial value and reinforces our confidence in the long-term opportunities for low-carbon and recycled aluminium," says Kallevik.
Hydro reached an important milestone in the development of its HalZero technology by producing aluminium for the first time, demonstrating the core electrolysis technology beyond laboratory scale. The achievement marks an important step toward Hydro's long-term ambition of eliminating emissions from electrolysis and anode production. Further testing, piloting and technology development remain before any potential industrial application. Enova awarded NOK 82 million in funding to support the concept development and planning of an industrial concept pilot.
"This is an important milestone and a significant step forward in the development of HalZero. Producing the first metal demonstrates that the electrolysis technology works and paves the way for the continued development of a game changing technology with the potential to enable emission-free aluminium production in the future," says Kallevik.
During the quarter, Slovalco began the restart of primary aluminium production following the agreement announced in July on long-term framework conditions with the Slovak government. The restart commenced in late August, marking the return of capacity curtailed during the European energy crisis in 2022. The first phase targets an annual production capacity of 75,000 tonnes by the end of February 2027. The restart reflects the importance of competitive power, predictable regulatory frameworks, and effective industrial policy in maintaining and rebuilding Europe's industrial base.
Results and market development per business area
Adjusted EBITDA for Bauxite & Alumina decreased compared to the third quarter of last year, to NOK 283 million from NOK 1,290 million, mainly driven by lower alumina sales prices, natural gas supply disruptions resulting in higher LNG sourcing costs and unfavourable BRL/USD exchange rate effects.This was partly offset by lower raw material costs and lower fixed costs.
PAX traded up throughout the third quarter 2026 to USD 370 per mt at the end on the quarter, diverging from Chinese alumina prices moving down. Despite lower alumina production at certain refineries in Indonesia because of raw material supply challenges, the World ex-China alumina market was oversupplied in the quarter. China's alumina market became increasingly oversupplied during the quarter as new refinery capacity came on line. Chinese alumina prices were close to the marginal cash production cost. Approximately half of China's alumina production depends on bauxite imported from Guinea. The government of Guinea is considering the possibility of restricting annual bauxite exports volume, but no formal announcement has been made.
Adjusted EBITDA for Energy decreased in the third quarter compared to the same period last year, to NOK 411 million from NOK 828 million. The decrease is mainly due to a loss on price area differences compared to a gain in the same period last year.
Average Nordic power prices increased in the third quarter compared with both the previous quarter and the same quarter last year. The increase was mainly driven by weak hydrological conditions and higher power prices in Continental Europe. Price area differences between the south and north of the Nordic market were above the previous quarter and below the same period last year. The price difference between central Norway and northern Sweden widened significantly compared with both the previous quarter and the same quarter last year.
The Nordic hydrological balance at the end of the quarter was 13 TWh below normal, compared to 15 TWh below normal at the end of last quarter and 1 TWh below normal at the same time last year. Norwegian hydropower reservoirs were around 67.8 percent of full capacity at the end of the quarter, which is below the normal for this time of year of 82.8 percent. The distribution was uneven, with lower than normal levels in the southern and central Norway, and higher than normal levels in the north.
Adjusted EBITDA for Aluminium Metal increased in the third quarter of 2026 compared to the third quarter of 2025, to NOK 7,031 million from NOK 2,732 million, due to higher all-in metal prices, partly offset by lower sales volume, higher energy and carbon cost, and weaker USD to NOK. Global primary aluminium consumption was slightly higher compared to the third quarter of 2025, driven by a 3.0 percent increase in Asia. Primary consumption in the World ex. China is estimated to be down compared to the third quarter of 2025. The Middle East crisis continued to affect the aluminium market and prices during the third quarter. Following indications that the conflict might be nearing an end at the end of the second quarter, tensions increased again in the third quarter, directly contributing to higher aluminium prices. Throughout the quarter the market traded in a range between USD 3,100 per mt and USD 3,300 per mt. Consequently, the three month aluminium price increased slightly throughout the third quarter of 2026, starting the quarter at USD 3,076 per mt and ending at USD 3,170 per mt.
Adjusted EBITDA for Metal Markets decreased in the third quarter of 2026 compared to the same period last year, to NOK 125 million from NOK 154 million, due to lower results from sourcing and trading activities, partly offset by higher results from recyclers.
Adjusted EBITDA for Extrusions increased in the third quarter of 2026 compared to the same quarter last year, to NOK 1,189 million from NOK 1,107 million, driven by higher recycling margins in combination with increased sales volume, partly offset by higher maintenance cost, higher SG&A cost and negative currency effects mainly from stronger NOK/USD.
CRU estimates that European extrusion demand increased by 1 percent in the third quarter of 2026 compared to the same quarter last year, following weaker market conditions in the first half of the year. Automotive demand remained positive, supported by continued growth in battery electric vehicle production. Non- automotive transportation also turned positive after a weak start to the year, while building and construction remained broadly stable in the quarter.
CRU estimates that North American extrusion demand remained broadly unchanged in the third quarter of 2026 compared to the same quarter last year, following a decline in the first half of the year. Commercial transportation continued to grow, supported by improving truckload rates, with further growth expected going forward. The industrial segment also remained solid, supported in part by continued datacenter investments. Automotive demand remained subdued, reflecting persistent headwinds in electric vehicle production.
Other key financials
Compared to the second quarter of 2026, Hydro's adjusted EBITDA increased to NOK 9,089 million from NOK 8,923 million, mainly due to higher all-in metal and alumina prices and lower fixed costs in the third quarter of the year. This was partially offset by higher energy costs in Bauxite & Alumina due to gas supply disruptions and seasonally lower Extrusion volumes and margins.
Net income (loss) amounted to NOK 5,263 million in the third quarter of 2026. Net income (loss) included unrealized derivative losses, mainly on LME related contracts of NOK 204 million, environmental cost of NOK 111 million, rationalization charges and closure costs of NOK 81 million, and impairment charges on fixed assets of NOK 70 million. The tax effect on these adjustments reflected a standardized tax rate for taxable gains and tax deductible losses. Adjusted net income (loss) for the first quarter ended at NOK 4,372 million.
Hydro's net debt decreased from NOK 16.3 billion to NOK 15.4 billion during the third quarter of 2026. The net debt decrease was mainly due to positive EBITDA contributions, partially offset by net operating capital build, investments and negative other operating cash flow.
Adjusted net debt decreased from NOK 22.8 billion to NOK 21.9 billion, mainly driven by the decrease in net debt.
Reported earnings before financial items and tax (EBIT), and net income include effects that are disclosed in the quarterly report. Adjustments to EBITDA, EBIT, and net income (loss) are defined and described as part of the alternative performance measures (APM) section in the quarterly report.
Investor contact:
Gerd Aalborg Aas
+47 91305534
gerd.aalborg.aas@hydro.com
Valentina Gandolfi
+47 95882355
Valentina.Gandolfi@hydro.com
Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com
The information was submitted for publication from Hydro Investor Relations and the contact persons set out above. Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty.
Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Except where required by law, Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
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