Norsk Hydro: Operational strength delivering solid results
Hydro’s adjusted EBITDA for the second quarter of 2026 was NOK 8,923 million, up from NOK 7,790 million in the same quarter last year. Higher aluminium prices and product premiums contributed positively, together with improved earnings in the recycling business. Lower energy production due to hydrology and adverse effects from a stronger NOK contributed negatively. Hydro delivered strong profitability in the quarter, with adjusted earnings per share increasing from NOK 1.7 in the second quarter 2025 to NOK 2.2 in the second quarter 2026. Free cash flow was NOK 4 billion, with strong adjusted EBITDA partially offset by investments and tax payments. The twelve month adjusted RoaCE ended at 10.9 percent.
- Slovalco 75,000 tonnes restart announced on July 1
- Realized all-in metal prices up 14 percent from first quarter
- All-time high casthouse production in Norway, upstream operational performance at high level
- Recycling results strengthening, adjusted EBITDA NOK 0.9 billion
- Power sourcing continuing, further 5 TWh sourced in second quarter
On July 1, the planned restart of the Slovalco smelter was announced, following an agreement on long-term framework conditions with the Slovak government, including indirect carbon cost compensation. The smelter will restart 75,000 tonnes of capacity during the second half of 2026.
“This quarter reflects both Hydro's operational strength and the opportunities for European industry. Alongside strong financial results driven by solid operational performance and supportive markets, the agreement on a framework to restart Slovalco is an important step toward rebuilding European aluminium capacity. It also demonstrates that competitive energy and predictable framework conditions unlock investments and strengthen Europe's industrial resilience,” says Eivind Kallevik, President and CEO of Hydro.
The second quarter demonstrated continued strong operational performance across Hydro’s upstream businesses. At Alunorte, the refinery productivity increased year on year. In Aluminium Metal, the ramp up of previously curtailed capacity at the Norwegian smelters continued through the quarter, contributing to higher production volumes compared to the same period last year and reinforcing Hydro’s position as a reliable supplier to the European market.
Recycling continued to deliver strong results during the quarter, particularly in North America, where favorable market conditions and robust value added product premiums, supported margins and volumes. Adjusted EBITDA from the recycling operation was over NOK 900 million in the quarter. The continued performance highlights the strength of Hydro’s integrated and increasingly circular business model.
To source competitively priced renewable energy for the aluminium smelters remains a key priority for Hydro. In early July, a 10 year agreement was signed with Eviny, covering 0.5 TWh annually for the period 2031 to 2040. With the latest contract, Hydro has covered 85 percent of its total sourcing need in Norway in the 2030s. However, further development of renewable power is needed to support Hydro’s long-term growth and development plans.
“Hydro has secured a strong power position in Norway well into the next decade. At the same time, Europe needs significantly more renewable power generation if industries like aluminium are to remain competitive and continue investing for the future,” says Kallevik.
Hydro also continued to shape the market for low-carbon and recycled aluminium. During the quarter, Hydro entered a five year supply agreement with Nexans for approximately 85,000 tonnes of low-carbon aluminium wire rod. The agreement supports Europe's growing demand for electricity infrastructure, while strengthening Hydro's position in value added low-carbon aluminium. It also aligns with the recent expansion of wire rod capacity at Karmøy, supporting long-term growth opportunities driven by the energy transition
Results and market development per business area
Adjusted EBITDA for Bauxite & Alumina decreased compared to the second quarter of last year, to NOK 522 million from NOK 1,521 million, primarily due to lower alumina prices and a stronger BRL against the USD, partially offset by higher sales volumes and improved bauxite quality.
PAX traded in a narrow range between USD 303 and USD 330 per mt in the second quarter 2026, reflecting Chinese alumina price trends. Despite lower alumina production at certain refineries in Indonesia and Australia because of raw material supply challenges, the World ex-China alumina market was oversupplied in the quarter. China's alumina market was essentially balanced in the quarter with higher alumina imports offset by lower production because of some production disruptions. Chinese alumina prices were close to the marginal cash cost of production. Approximately half of China’s alumina production depends on bauxite imported from Guinea. The government of Guinea is considering restricting annual bauxite exports volume, but no formal announcement has been made.
Adjusted EBITDA for Energy decreased in the second quarter compared to the same period last year, to NOK 499 million from NOK 1,069 million. The decrease is mainly due to lower production and a loss on price area differences compared to a gain in the same period last year.
Average Nordic power prices in the second quarter of 2026 decreased compared to the previous quarter, but increased compared to the same quarter last year. The decrease from the previous quarter was mainly driven by lower seasonal demand and higher hydro power production following the melting season. 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 Nordic hydrological balance at the end of the quarter was 15 TWh below normal, compared to 21 TWh below normal at the end of last quarter and 10 TWh above normal at the same time last year. Norwegian hydropower reservoirs were around 61.9 percent of full capacity at the end of the quarter, which is below the normal for this time of year of 67.9 percent. The distribution was uneven, with lower than normal levels in the south of Norway and higher than normal levels in the north.
Adjusted EBITDA for Aluminium Metal increased in the second quarter of 2026 compared to the second quarter of 2025, to NOK 6,421 million from NOK 2,423 million, due to higher all-in metal prices and lower alumina cost, 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 second quarter of 2025, driven by a 2.2 percent increase in China. Primary consumption in the World ex-China is estimated to be down compared to the second quarter of 2025. The three month aluminium price decreased towards the end of the second quarter of 2026, starting the quarter at USD 3,532 per mt and ending at USD 3,086 per mt. The U.S. and Iran ceasefire, and subsequently partly opening of the Straight of Hormuz has led to an easing of supply concerns for aluminium globally. More metal has been shipped out of the Middle East and smelter production is recovering.
Adjusted EBITDA for Metal Markets decreased in the second quarter of 2026 compared to the same period last year, to NOK 32 million from NOK 276 million, due to lower results from sourcing and trading activities, partly offset by higher results from recyclers and positive inventory valuation and currency effects.
Adjusted EBITDA for Extrusions increased in the second quarter of 2026 compared to the same quarter last year, to NOK 1,463 million from NOK 1,260 million, driven by higher recycling margins in combination with lower fixed cost partly offset by reduced sales volume.
European extrusion demand is estimated to have increased slightly by 0.4 percent in the second quarter of 2026 compared to the same quarter last year, following a weaker first quarter. Demand in the building & construction and industrial segments showed modest growth in the quarter. Automotive demand remained positive in the first half of the year, supported by continued growth in battery electric vehicle production, while non-automotive transport demand remained subdued.
North American extrusion demand is estimated to have been flat in the second quarter of 2026 compared to the same quarter last year, following a weaker first quarter. Demand in the electrical segment remained solid during the quarter, while activity in the commercial transport segment improved towards the end of the period as price levels moderated. Automotive demand remained weak due to continued headwinds in electric vehicle production.
Other key financials
Compared to the first quarter of 2026, Hydro’s adjusted EBITDA increased to NOK 8,923 million from NOK 8,668 million, mainly due to higher all-in metal prices, improved Extrusions volumes and strong recycling margins in the second quarter of the year. This was partially offset by lower Energy results due to lower power production and losses on price area differences, higher fixed cost in Bauxite & Alumina and negative currency effects in Aluminium Metal.
Net income (loss) amounted to NOK 5,965 million in the second quarter of 2026. Net income (loss) included unrealized derivative gains, mainly on LME related contracts of NOK 3,088 million, rationalization charges and closure costs of NOK 233 million, impairment charges in equity accounted investments of NOK 104 million, and impairment charges on fixed assets of NOK 337 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 4,601 million.
Hydro’s net debt increased from NOK 12.9 billion to NOK 16.3 billion during the second quarter of 2026. The net debt increase was mainly due to dividends paid, investments and other operating cash flow more than offsetting the EBITDA contribution.
Adjusted net debt increased from NOK 21.6 billion to NOK 22.8 billion, mainly driven by the increase in net debt, partly offset by lower hedging collateral.
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:
Baard Erik Haugen
+47 92497191
Erik.Haugen@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.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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