Hydro's adjusted EBITDA for the third quarter of 2025 was NOK 5,996 million,
down from NOK 7,367 million in the same quarter last year. The results decreased
from lower realized alumina prices and a stronger NOK. This was partly offset by
higher primary and alumina volumes, positive gain from increasing U.S. Midwest
premium in Extrusions (metal effect) and realization of previously eliminated
internal profits. Hydro generated NOK 2.2 billion in free cash flow, while the
twelve month adjusted RoaCE ended at 11 percent.
* Solid cash generation, uncertain extrusion markets
* Executing on strategic workforce and cost reductions
* Future proofing Alouette by signing an Agreement in Principle for long-term
power contract until 2045
* Dutch court dismisses all claims against Hydro filed by Brazilian Cainquiama
and nine individuals in 2021
* Advancing low-carbon and circular solutions through customer collaborations
"Challenging markets are affecting our third quarter and we experience weaker
results. Despite lower adjusted EBITDA, I am pleased to report solid cash
generation while we continue to create results in our efficiency and improvement
initiatives in order to improve robustness," says Eivind Kallevik, President and
CEO of Hydro.
In June, Hydro launched a strategic workforce and cost reduction program to
future proof the organization and strengthen long-term competitiveness. The
initiative includes reducing approximately 750 white collar positions to
streamline the organizational structure and enhance profitability. About 600
positions will be reduced in 2025, with estimated gross redundancy costs of
around NOK 400 million and expected cost savings of NOK 250 million, resulting
in a net 2025 cost of NOK 150 million. Further 150 position reductions are
planned for in 2026, mainly through natural attrition. From 2026, the program is
expected to deliver annual net run-rate savings of NOK 1 billion, including
lower travel and consultancy expenses.
These measures comes in addition to several performance and capital discipline
initiatives, thereby complementing the 2030 NOK 6.5 billion improvement program
and reduced 2025 capex estimate, further strengthening Hydro's ability to
navigate global uncertainty. The process is being carried out in line with
Hydro's values of care, courage, and collaboration, and in close cooperation
with employee representatives.
"Hydro is committed to building resilience, and in an increasingly unpredictable
market situation, this program is a significant step. The savings following this
program will be an important contribution to our future performance. While such
initiatives are challenging, I am encouraged by the thorough and considerate
approach taken to ensure that we keep critical resources while adopting to the
new reality," says Kallevik.
Reliable access to renewable energy remains key to Hydro's low-carbon aluminium
strategy. In the third quarter, Hydro's joint venture smelter, Alouette, made
progress in its global power sourcing initiatives, reaching an Agreement in
Principle (AiP) with the Government of Québec and Hydro-Québec to secure
renewable power supply for the period 2030 - 2045. The agreement ensures stable,
competitive energy in a tightening market and reinforces Alouette's position as
the largest aluminium smelter in the Americas. The parties will now work toward
a final agreement, further strengthening Hydro's global portfolio of long-term
renewable power purchase agreements and overall energy resilience.
Hydro is progressing its batteries phase out, as previously communicated on
Capital Markets Day in November 2024, in line with its strategic priorities. On
October 10, Hydro exchanged its shares in Lithium de France for a 6 percent
share in Arverne Group. In addition, Hydro has signed an agreement to divest its
entire stake in the maritime battery company Corvus Energy for USD 30 million,
with closing expected in early November.
On September 24, 2025, the Rotterdam court issued its final judgment in the case
brought forward by Brazilian Cainquiama and nine individuals against Norsk Hydro
ASA and its Dutch subsidiaries in 2021. The court fully dismissing all claims
brought forward by the plaintiffs, including claims of pollution caused by
Alunorte following heavy rains in the region in February 2018. The court's
dismissal was based on both legal and factual grounds. During the proceedings,
Hydro presented extensive evidence, including expert analyses and empirical
data. On this basis the court confirmed as an established fact, that there were
no overflow from the bauxite residue deposits in 2018, and consequently no harm
was caused to the environment.
Hydro continues to shape the aluminium market by expanding low-carbon and
circular solutions. Since 2022, the company has partnered with Mercedes-Benz to
decarbonize the automotive value chain, a collaboration highlighted by the new
electric CLA launched this year, which features Hydro REDUXA 3.0 aluminium from
the Årdal smelter. This partnership reinforces Hydro's commitment to
transparency, traceability and responsible sourcing in automotive applications.
In the infrastructure sector, the Hangarbrua pedestrian bridge in Trondheim
exemplifies industrial collaboration and circular innovation. A substantial
portion of the material originates from recycled aluminium recovered from the
decommissioned Gyda oil platform, showcasing Hydro's capability to close the
recycling loop and transform offshore materials into new, low-carbon
applications. The project demonstrates how innovative design and aluminium's
unique properties enable lighter, low maintenance, and longer lasting
infrastructure.
Results and market development per business area
Adjusted EBITDA for Bauxite & Alumina decreased compared to the third quarter of
last year, to NOK 1,290 million from NOK 3,410 million, mainly driven by lower
alumina sales prices, weaker BRL to USD and higher fixed costs. Partly offset by
increased sales volume and positive effect from the fuel switch project, which
replaces fuel oil with natural gas in the Alunorte refinery.
PAX traded down to USD 321 per mt at the end of the third quarter, from USD 358
at the end of the second quarter, driven by Chinese alumina price trends and a
loosening global alumina balance as the production at new refineries in
Indonesia continued ramping up as demand stayed stable. China's alumina market
was oversupplied, driving domestic prices down towards marginal cash cost. The
suspension of some bauxite mining licenses in Guinea reduced bauxite production
and exports to China, ending the bauxite price decline started in the first
quarter of 2025.
Adjusted EBITDA for Energy increased in the third quarter compared to the same
period last year, to NOK 828 million from NOK 626 million. The increase was
mainly driven by higher price area gain partly offset by lower production.
Average Nordic power prices increased compared to the previous quarter and the
same quarter last year. The increase in prices from the same quarter last year
are primarily due to lower wind and nuclear production. The increase in prices
from the previous quarter are mainly due to lower wind and solar production.
Price area differences between the south and north of the Nordic market regions
increased, both compared to the same quarter last year and the previous quarter,
as the northern areas were influenced by strong hydrology and high wind
production.
Adjusted EBITDA for Aluminium Metal decreased in the third quarter of 2025
compared to the third quarter of 2024, to NOK 2,732 million from NOK 3,234
million, mainly due to weaker USD to NOK, partly offset by higher sales volume
and lower alumina cost.? Global primary aluminium consumption was flat compared
to the third quarter of 2024, with demand growth in China balancing a 1.8
percent decline in demand in the World ex. China. The three month aluminium
price increased throughout the third quarter of 2025, starting the quarter at
USD 2,599 per mt and ending at USD 2,681 per mt.
Adjusted EBITDA for Metal Markets decreased in the third quarter of 2025
compared to the same period last year, to NOK 154 million from NOK 277 million,
due to lower results from sourcing and trading activities, partly offset by
increased results from recyclers.
Adjusted EBITDA for Extrusions increased in the third quarter of 2025 compared
to the same quarter last year, to NOK 1,107 million from NOK 879 million, driven
by lower cost in combination of somewhat higher volumes. Increasing U.S. Midwest
premium (positive metal effect) compensated for pressured sales margins.
European extrusion demand is estimated to have been flat in the third quarter of
2025 compared to the same quarter last year, but decreased 20 percent compared
to the second quarter due to seasonality. Demand for building & construction and
industrial segments have stabilized at historically low levels with some
improvements in order bookings. Automotive demand has been negatively impacted
by lower European light vehicle production, partly offset by increased
production of electric vehicles.
North American extrusion demand is estimated to have increased 2 percent in the
third quarter of 2025 compared to the same quarter last year, but decreased 2
percent compared to the second quarter. Extrusion demand has continued to be
weak in the commercial transport segment driven by lower trailer builds.
Automotive demand has also been weak. Demand has been positive in the building &
construction and industrial segments. While the ongoing impacts from the
introduction of tariffs and duties are still uncertain at this stage, order
bookings have developed better for domestic producers due to lower imports so
far this year.
Other key financials
Compared to the second quarter of 2025, Hydro's adjusted EBITDA decreased to NOK
5,996 million from NOK 7,790 million, mainly due to lower realization of
previously eliminated internal profits, lower realized aluminium price and a
stronger NOK, partly offset by reduced raw material costs.
Net income (loss) amounted to NOK 2,149 million in the third quarter of 2025.
Net income (loss) included a NOK 206 million unrealized derivative loss, mainly
on LME related contracts, and a net foreign exchange gain on risk management
instruments of NOK 66 million. The result also included NOK 116 million in
rationalization charges and compensation for termination of a power contract of
which NOK 251 million is related to future periods. Further, foreign exchange
gains of NOK 381 million was also adjusted for. The tax effect on these
adjustments reflected a standardized tax rate for taxable gains and tax-
deductible losses.
Hydro's net debt decreased from NOK 15.5 billion to NOK 13.6 billion during the
third quarter of 2025. The net debt decrease was mainly driven by EBITDA
contribution, partially offset by investments and net operating capital build.
Adjusted net debt decreased from NOK 23.0 billion to NOK 21.1 billion, mainly
driven by the decrease in net debt of NOK 1.9 billion, partially offset by
increased adjustments of NOK 0.1 billion, driven by increased 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:
Elitsa Blessi
+47 91775472
Elitsa.Blessi@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.