Norsk Hydro reported second-quarter adjusted EBITDA of 8.9 billion NOK, supported by higher all-in metal prices and strong operational performance. Free cash flow for the quarter stood at 4 billion NOK.

The aluminum producer also announced an agreement to restart production at its Slovalko joint venture in Slovakia and secured a long-term renewable power agreement with Eviny. These strategic moves aim to bolster its competitive position in Europe amid geopolitical volatility.

Financial Performance

Revenues increased approximately 6% year-over-year to 56.5 billion NOK. The reported EBITDA was 11.6 billion NOK, which included unrealized derivative gains on LME-related contracts of 3.1 billion NOK. After adjusting for these items, the adjusted EBIT came in at 6.3 billion NOK, compared to reported EBIT of 8.6 billion NOK.

Adjusted net income rose to 4.6 billion NOK from 3.6 billion NOK in the same quarter last year. This resulted in adjusted earnings per share of 2.21 NOK, up from 1.68 NOK in Q2 2025. The reported tax rate for the quarter was 25%.

Note: Q2 2025 figures derived from percentage changes or explicitly stated comparisons in source.

Segment Results

In the Aluminium Metal segment, adjusted EBITDA surged to 6.4 billion NOK from 2.4 billion NOK a year earlier, driven by higher metal prices and lower alumina costs. This growth was partly offset by negative currency effects due to a stronger Norwegian kroner against the US dollar.

The Bauxite & Alumina segment saw adjusted EBITDA decline to 550 million NOK from 1.5 billion NOK in Q2 2025, primarily due to lower alumina prices and unfavorable currency effects. Conversely, Recycling results strengthened, contributing positively with an adjusted EBITDA of 290 million NOK within the Metal Markets segment, where overall adjusted EBITDA fell to 32 million NOK from 280 million NOK a year prior.

What the Numbers Show

A significant portion of Norsk Hydro's reported profitability is driven by non-operational factors. While reported EBITDA stood at 11.6 billion NOK, adjusted EBITDA was 8.9 billion NOK, indicating that unrealized derivative gains accounted for approximately 2.7 billion NOK (or roughly 23%) of the top-line operating metric. Similarly, reported net income of 6 billion NOK exceeded adjusted net income of 4.6 billion NOK by 1.4 billion NOK, highlighting the material impact of derivative gains and foreign exchange losses on the bottom line. Investors should distinguish between core operational cash generation and financial engineering effects when assessing sustainable earnings power.

Balance Sheet and Cash Flow

Net debt increased by 3.4 billion NOK to 16.3 billion NOK during the quarter. This rise occurred despite strong free cash flow of 4 billion NOK, as it was offset by the annual dividend payment of 5.9 billion NOK distributed in May. Adjusted net debt, which includes hedging collateral and pension positions, ended at 22.8 billion NOK. Net operating capital remained stable as CO2 compensation received balanced higher sales revenues and pre-summer inventory builds.

Strategic Developments

Management highlighted the agreement to restart Slovalko, enabling the resumption of 75,000 tonnes of production pending EU approval. This follows years of curtailment due to unsustainable power prices. Additionally, Norsk Hydro signed a long-term power purchase agreement with Eviny for 0.5 TWh annually between 2031 and 2040, securing around 85% of the power need for its Norwegian smelter portfolio through the 2030s. Commercially, the company signed a five-year agreement with Nexans to supply approximately 85,000 tons of low-carbon aluminum wire rod.

Norsk Hydro ASA has invited investors, analysts, and financial media to its upcoming Investor Day scheduled for November 25, 2026.

The event will take place at Euston Square 30 in London, with an option for virtual attendance. However, virtual participants will not be able to ask questions during the Q&A session.

Agenda

The schedule begins with registration at 8:30 am GMT. The CEO and CFO will deliver presentations starting at 9:00 am, followed by Q&A sessions. Lunch is scheduled for 11:30 am. A roundtable discussion exclusively for sell-side analysts with the CEO and CFO will follow at 12:30 pm.

All times are in GMT.

Registration

Interested parties must register by November 3. Virtual attendees can follow the presentation and Q&A sessions via a webcast link provided by the company.

Gerd Aalborg Aas, SVP Group Finance & Investor Relations, and Valentina Gandolfi, Investor Relations Manager, are the points of contact for the event.