Novelis (Novelis) Q3 2025 earnings summary

Executive summary

• Net sales rose 4% year-over-year to $4.1 billion, driven by higher aluminum prices and strong beverage packaging demand, offsetting weaker specialty and automotive shipments.

• Adjusted EBITDA declined 19% year-over-year to $367 million, mainly due to higher aluminum scrap prices and less favorable product mix.

• Net income attributable to common shareholder fell 9% to $110 million; excluding special items, net income dropped 32% to $119 million.

• Sierre, Switzerland plant resumed full operations after flooding, with minimal Q3 impact due to insurance recovery.

• Strategic investments in new and expanded facilities are progressing on schedule.

Financial highlights

• Total flat rolled product shipments were 904kt, nearly flat year-over-year.

• Adjusted EBITDA per tonne shipped was $406, down 19% year-over-year.

• Adjusted free cash flow for the first nine months was an outflow of $950 million, mainly due to higher capital expenditures.

• Net cash flow from operating activities for the first nine months was $263 million, down from $420 million in the prior year period.

• Total capital expenditures reached $1.2 billion for the first nine months, up 22% year-over-year, focused on new rolling and recycling capacity.

Outlook and guidance

• Q4 performance expected to improve over Q3, with EBITDA anticipated to be comparable to Q2, driven by higher volumes, favorable product mix, and new contract pricing.

• Scrap prices expected to remain elevated in Q4 and into fiscal 2026, with no significant reduction anticipated.

• Long-term demand for beverage packaging and automotive aluminum sheet projected to grow at 4% and 6% CAGR, respectively, through 2031 and 2030.

• Operational and cost efficiency initiatives are underway to offset input cost pressures.

• No specific guidance reinstated for FY26/27; focus remains on operational improvements and margin recovery.