Norsk Hydro ASA

Q3 revenue increased about 3% year over year to NOK 52.1 billion. Adjusted EBITDA was NOK 9.1 billion and reported EBITDA was NOK 8.7 billion; adjusted EBIT was NOK 6.3 billion and reported EBIT was NOK 5.9 billion. Adjusted net income was NOK 4.4 billion versus NOK 1.9 billion a year ago, and adjusted EPS was NOK 2.28 versus NOK 1.02 in Q3 2025. Free cash flow was NOK 1.4 billion, and adjusted net debt ended at NOK 21.9 billion. For Q4, Hydro expects higher sales volumes at Bauxite & Alumina as production fully recovers, but also expects a negative USD 90 million to USD 110 million impact from higher gas costs at Alunorte. Management raised year-end net operating capital guidance to around NOK 32 billion from around NOK 30 billion and reduced full-year CapEx guidance to around NOK 12.5 billion from around NOK 13.5 billion.

Eivind Kallevik framed the quarter as one of strong operational performance and steady progress on Hydro’s strategic agenda. He emphasized safety as the top priority, but also pointed to record liquid metal production in Norway, resilient alumina output despite the Alunorte gas disruption, and progress in recycling, extrusions, and renewable power. He was upbeat about commercial traction in low-carbon and recycled aluminum, citing partnerships with Chanel, GM, and Mercedes-Benz, and he called the first aluminum from the HalZero test facility an important milestone while stressing that several years of testing and piloting still remain.

Trond Christophersen walked through a quarter with strong earnings but notable cash conversion pressure. He cited revenue of NOK 52.1 billion, adjusted EBITDA of NOK 9.1 billion, adjusted EPS of NOK 2.28, and free cash flow of NOK 1.4 billion, while explaining that cash flow was reduced by a NOK 3.7 billion net operating capital build, NOK 2.0 billion of other operating cash outflows, and NOK 2.0 billion of cash-effective investment. He also said adjusted net debt was NOK 21.9 billion, year-end net operating capital is now expected at around NOK 32 billion, and full-year CapEx is now expected at around NOK 12.5 billion. On segment outlooks, he noted Q4 premium realization should be lower than market premiums because of product mix, Alunorte’s Q4 gas-cost hit is estimated at USD 90 million to USD 110 million, and the trading/business area remains pressured by Middle East-related logistics costs.

Analysts focused on three main issues: why Q4 realized aluminum premiums are guided below current market levels, how Hydro will replace Alunorte’s gas contract, and whether the NOK 1 billion CapEx reduction will roll into 2027. Management said realized premiums are lower mainly because Hydro sells a mix of casthouse products and the late-stage standard ingot product carries lower underlying premiums, while the current premium environment is also easing from recent highs. On Alunorte, management said it is working toward a long-term competitive gas supply contract but will give a fuller update at the November Investor Day, and on CapEx it said the reduction is spread across all business areas, with 2027 guidance to come later. Hydro also said Qatalum is operating around 60% of capacity with stable raw material logistics and no expected change to gas or electricity cost base from its long-term gas supply agreement.