Novelis (Novelis) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 was marked by operational disruption from Oswego plant fires, causing significant production interruptions and losses, but core performance remained resilient with rapid recovery and Oswego hot mill restart ahead of schedule.

• Strategic investments in Bay Minette, Alabama, are progressing well, with cold mill commissioning begun in March and full plant commissioning on track for later in the year.

• Global cost efficiency initiatives delivered over $200 million in run rate savings, with a new target of $350–$400 million by FY 2028.

• Q4FY26 Adjusted EBITDA per tonne rose 10% year-over-year to $544, despite operational disruptions.

• Full-year FY26 net income attributable to common shareholder was $15 million, down 98% year-over-year; excluding special items, $476 million, down 38%.

Financial highlights

• Q4 net sales rose 4% year-over-year to $4.8 billion, driven by higher aluminum prices, despite a 12% decline in rolled product shipments due to Oswego fires.

• Adjusted EBITDA for Q4 was $459 million, down 3% year-over-year, with per ton EBITDA up 10% to $544.

• FY26 net sales increased 7% to $18.4 billion, adjusted EBITDA fell 9% to $1.6 billion, and net income attributable to the common shareholder was $15 million.

• Adjusted free cash flow for FY26 was an outflow of $2.4 billion, mainly due to $2.3 billion in capex and $1.1 billion Oswego fire impact.

• Rolled product shipments for the year were 3,557 kilotonnes, down 5% year-over-year.

Outlook and guidance

• Oswego is expected to ramp up quickly to pre-fire levels, supporting pent-up demand and normalizing shipments in H2 FY27.

• Bay Minette project remains on track for full commissioning in the second half of the calendar year.

• Full-year capex for FY27 is projected at $2.1–$2.4 billion, with Bay Minette and Oswego repairs as key drivers.

• Positive free cash flow is expected by the end of FY27, with deleveraging to follow as major projects complete.

• Long-term EBITDA per ton target of $600 remains on track within two to three years as Bay Minette ramps up and cost savings are realized.