Logotype for Novelis Inc

Novelis (Novelis) Q3 2026 earnings summary

Event summary combining transcript, slides, and related documents.

Logotype for Novelis Inc

Q3 2026 earnings summary

25 Feb, 2026

Executive summary

  • Q3 FY2026 performance was significantly impacted by two fires at the Oswego, NY plant, resulting in major operational disruption, a net loss of $160 million, and an 11% decline in shipments, but underlying business resilience was supported by cost efficiencies and strong demand in beverage packaging.

  • Adjusted EBITDA fell 5% year-over-year to $348 million, with Oswego fires and tariffs negatively impacting results, partially offset by cost efficiencies and recycling benefits.

  • Net sales rose 3% year-over-year to $4.2 billion, driven by higher aluminum prices despite lower volumes.

  • Cost efficiency program raised FY26 exit run-rate savings outlook to over $150 million, with a target of $300 million in annualized savings by FY2028.

  • Bay Minette, Alabama greenfield plant construction is progressing, with cold mill commissioning expected next month and full plant commissioning in the second half of calendar 2026.

Financial highlights

  • Net sales for the quarter ended December 31, 2025, were $4.2 billion, up 3% year-over-year, with shipments down 11% to 809 kilotonnes due to Oswego disruptions.

  • Adjusted EBITDA was $348 million, down 5% year-over-year, including a $54 million negative impact from Oswego fires and $34 million from tariffs.

  • Adjusted EBITDA per tonne increased 6% to $430, reflecting cost efficiencies.

  • Net loss attributable to common shareholder was $160 million, including $327 million in fire-related losses below EBITDA.

  • Year-to-date adjusted free cash flow outflow was $1.6 billion, mainly due to higher aluminum prices and Oswego fire costs.

Outlook and guidance

  • Oswego hot mill expected to restart late in Q2 of calendar 2026; full hot mill restart expected by end of Q1 fiscal 2027.

  • Combined free cash flow impact from fires estimated at $1.3–$1.6 billion before insurance, with $150–$200 million Adjusted EBITDA impact.

  • Expect to recover 70–80% of fire-related cash flow impact through insurance.

  • Fiscal 2026 capital expenditures expected at $1.9–$2.2 billion, including $300 million maintenance CapEx.

  • Cost efficiency program targets over $300 million in total savings by end of FY28.

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