Norsk Hydro (NHY) Q4 2025 earnings summary

Executive summary

• Achieved adjusted EBITDA of NOK 5.6 billion in Q4 2025, with free cash flow of NOK 4.6 billion and adjusted RoaCE for the year at 10.2%, exceeding the 10% target.

• Solid upstream performance and cost control drove strong cash flow, despite lower revenues and challenging downstream markets.

• Strategic workforce reduction completed, with around 850 employees leaving by mid-2026, supporting cost control.

• Secured two long-term power contracts and a major hydropower investment for Norwegian smelters.

• Proposed dividend of NOK 3.0 per share, representing 60% of adjusted net income, totaling NOK 5.9 billion for 2025.

Financial highlights

• Q4 2025 revenue was NOK 47.2 billion, down 14% year-over-year, mainly due to lower alumina prices.

• Adjusted EBITDA for Q4 2025 was NOK 5.6 billion, down from NOK 7.7 billion in Q4 2024.

• Adjusted net income for Q4 2025 was NOK 1.7 billion, down from NOK 2.6 billion in Q4 2024.

• Adjusted earnings per share for Q4 2025 was NOK 0.70.

• Net debt decreased by NOK 3.9 billion to NOK 18.2 billion at Q4 end.

Outlook and guidance

• Q1 2026 expected to see stable costs but lower alumina production due to seasonality and maintenance; alumina prices to continue correcting.

• Aluminium Metal segment has 70% of Q1 2026 production hedged at $2,803/ton, with higher fixed and raw material costs anticipated.

• Extrusions: Q1 2026 guidance for flat metal effect, stable margins, and slightly lower North American sales; modest growth expected in 2026.

• Energy: Q1 2026 production to decrease due to maintenance; prices expected to rise seasonally, but price area gains to decline.

• Capital expenditure guidance for 2026 remains conservative amid market uncertainty.