Norsk Hydro shares gain 14% M-o-M: Aluminium demand, Q2 results draw investor focus

This image has been sourced from https://www.hydro.com/

Leading recycled aluminium producer Norsk Hydro stock is attracting investor attention as its second-quarter (Q2) performance, aluminium prices and market outlook shape sentiment around the company. Hydro reported strong Q2 2026 profitability, backed by higher aluminium prices, product premiums and improved recycling results.

As of August 25, Hydro stocks closed at USD 10.08, marking a stark month-on-month (M-o-M) rise by 14.16 per cent over the closing price of USD 8.83 reported on July 27, indicating how investors continue to assess the outlook for aluminium demand and margins.

Hydro’s Q2 adjusted EBITDA reached NOK 8.92 billion (USD 927.39 million), rising per cent from NOK 7.79 billion (USD 809.6 million) a year earlier. Adjusted earnings per share (EPS) jumped to NOK 2.2 (USD 0.23) from NOK 1.7 (USD 0.18), while free cash flow reached NOK 4 billion (USD 415.5 million).

The improvement was largely supported by higher all-in aluminium prices and product premiums, alongside stronger recycling performance. Hydro’s recycling business generated adjusted EBITDA of more than NOK 900 million (USD 93.7 million) during the quarter.

Join the webinar by Alberto Monje Gama to learn about recycled aluminium, CBAM and trust

Aluminium remains the core earnings driver

Hydro’s Aluminium Metal business delivered adjusted EBITDA of NOK 6.42 billion (USD 668.9 million), sharply above NOK 2.423 billion (USD 252.4 million) in Q2 2025. Higher all-in metal prices and lower alumina costs supported the improvement, although higher energy and carbon costs, lower sales volumes and currency movements provided some offset.

Global primary aluminium consumption was slightly higher year-on-year in Q2, driven partly by a 2.2 per cent increase in China, while consumption outside China was estimated to have declined. Hydro also noted that the three-month aluminium price eased during the quarter, falling from USD 3,532 per tonne at the start of Q2 to USD 3,086 per tonne by quarter-end.

Recycling and extrusions add to the picture

Hydro’s earnings story is not limited to primary aluminium. Its recycling business continued to strengthen, particularly in North America, where favourable market conditions and value-added product premiums supported margins and volumes.

The Extrusions business also recorded higher adjusted EBITDA of NOK 1.46 billion (USD 156.34 million), compared with NOK 1.26 billion (USD 134.92 million) in the corresponding quarter last year. Higher recycling margins and lower fixed costs supported the improvement, partly offset by weaker sales volumes.

Overall, Hydro’s Q2 performance provides a stronger earnings base for the stock, but the next leg of its performance will remain closely tied to aluminium prices, demand outside China, energy economics and the strength of its recycling and value-added businesses.

To explore trade opportunities of secondary aluminium, visit AL Biz