Norsk Hydro (NHY) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong operational and financial results, with adjusted EBITDA reaching NOK 8.9 billion, driven by higher aluminium prices, robust production, and strong recycling margins.

• Safety performance remained strong, with TRI at 1.90 and HRI at 0.35 per million hours worked (12-month rolling average), and a continued focus on zero injuries.

• Slovalco smelter restart (75,000 tonnes) announced, supporting regional jobs and European aluminium capacity, pending EU approval.

• Progress continued on decarbonization, recycling, and customer partnerships for low-carbon aluminium, including agreements with Mercedes-Benz and Nexans.

• Strengthened renewable power sourcing with new long-term agreements, securing 85% of Norwegian smelter power needs through the 2030s.

Financial highlights

• Q2 2026 revenues increased 6% year-over-year to NOK 56.5 billion, driven by higher all-in metal prices.

• Adjusted EBITDA was NOK 8.9 billion, up 15% year-over-year; reported EBITDA NOK 11.6 billion.

• Adjusted EBIT reached NOK 6.3 billion; reported EBIT NOK 8.6 billion.

• Adjusted net income was NOK 4.6 billion, up from NOK 3.6 billion in Q2 2025; net income more than doubled to NOK 6.0 billion in some reports.

• Adjusted EPS was NOK 2.21, up from NOK 1.68 in Q2 2025.

• Free cash flow for the quarter was NOK 4.0 billion.

• Adjusted RoaCE was 10.9% (last twelve months), above the 10% cycle target.

Outlook and guidance

• Full-year 2026 CapEx guidance remains at NOK 13.5 billion.

• Q3 outlook: Aluminium Metal has 62% of primary production hedged at $3,361/ton; premiums expected between $660–$710/ton.

• Carbon and energy costs expected to rise slightly in Q3, while fixed costs are expected to decrease.

• Strong recycling results expected to continue in Q3; sourcing and trading results to normalize.

• Energy segment expects improved results from price area differences in Q3, but hydrology remains a key risk.