Hydro reports $965m Q3 EBITDA on strong aluminium prices and record Norwegian smelter output

Hydro reported higher adjusted earnings in the third quarter of 2026, supported by strong aluminium prices, record liquid metal production from its Norwegian smelters and improved performance in Recycling and Extrusions. Adjusted EBITDA rose to NOK 9 billion (USD 965 million) from NOK 8.92 billion (USD 957 million) in the second quarter, an increase of around 0.9 per cent quarter-on-quarter. Adjusted earnings per share increased to NOK 2.3 (USD 0.25) from NOK 1.0 (USD 0.11) in the third quarter of 2025, a rise of 130 per cent year on year.

The company generated free cash flow of NOK 1.4 billion (USD 150 million) during the quarter. Strong adjusted EBITDA was partly offset by higher net operating capital, mainly due to increased metal prices, working capital requirements and prepayments. Hydro lowered its year-end capital expenditure guidance to around NOK 12.5 billion (USD 1.34 billion) from NOK 13.5 billion (USD 1.4 billion), a reduction of around 7.4 per cent, while raising its net working capital guidance to around NOK 32 billion (USD 3.4 billion) from NOK 30 billion (USD 3.2 billion), an increase of around 6.7 per cent. Its 12-month adjusted return on capital employed (RoACE) stood at 12.5 per cent.

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Eivind Kallevik, president and CEO of Hydro, said, “Hydro’s third quarter results reflect strong operational performance amplified by market tailwinds.” He added, “Record high liquid metal production from our Norwegian smelter system, combined with strong pricing throughout the quarter, drove solid earnings and strong profitability.”

Aluminium Metal and Extrusions support earnings

Aluminium Metal recorded a significant increase in adjusted EBITDA to NOK 7 billion (USD 750 million) in Q3 2026, compared with NOK 2.7 billion (USD 289 million) in the same quarter last year, an increase of around 159 per cent year on year. Higher all-in metal prices drove the improvement, partly offset by lower sales volumes, higher energy and carbon costs, and a weaker US dollar against the Norwegian krone.

The three-month aluminium price started the quarter at USD 3,076 per tonne and ended at USD 3,170 per tonne, trading within a range of USD 3,100–3,300 per tonne during much of the period. Hydro said renewed tensions in the Middle East contributed to higher aluminium prices.

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Adjusted EBITDA for Extrusions increased to NOK 1.2 billion (USD 128 million) from NOK 1.1 billion (USD 118 million) a year earlier, an increase of around 9.1 per cent year on year, supported by higher recycling margins and increased sales volumes. CRU estimated that European extrusion demand rose 1 per cent year on year in the quarter, while North American demand remained broadly unchanged.

Recycling also benefited from improved margins. Hydro continued to see demand for its low-carbon and recycled aluminium products, including through partnerships with CHANEL Fragrances and Beauty, General Motors and Mercedes-Benz.

Mixed results across other business areas

Bauxite and Alumina adjusted EBITDA fell to NOK 283 million (USD 30 million) from NOK 1.3 billion (USD 139 million) in Q3 2025. Lower alumina sales prices, higher costs for alternative liquefied natural gas supplies following disruptions at Alunorte, and unfavourable currency effects weighed on results.

Adjusted EBITDA for Energy fell to NOK 411 million (USD 44 million) from NOK 828 million (USD 89 million), mainly due to price-area differences in the Nordic power market. Metal Markets earnings decreased to NOK 125 million (USD 13 million) from NOK 154 million (USD 16 million), a fall of around 18.8 per cent.

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Hydro also reported progress in developing its HalZero technology, producing aluminium for the first time beyond laboratory scale. The company said further testing and development are required before it can be used in industrial applications.

Kallevik said, “Producing the first metal demonstrates that the electrolysis technology works and paves the way for the continued development of a game-changing technology with the potential to enable emission-free aluminium production in the future.” Meanwhile, Slovalco began restarting primary aluminium production in late August, with the first phase targeting annual capacity of 75,000 tonnes by the end of February 2027.

Hydro’s net debt decreased to NOK 15.4 billion (USD 1.6 billion) from NOK 16.3 billion (USD 1.7 billion) during the quarter. Net income amounted to NOK 5.26 billion (USD 564 million) in the third quarter, while adjusted net income was NOK 4.37 billion (USD 469 million) in the first quarter.