Novelis Inc., the premier manufacturer of flat-rolled aluminium goods and the world’s largest recycling company, has announced its financial performance for the fourth quarter and fiscal year 2024-25. As per the records, strong shipments throughout the year backed by increased demand for beverage packaging continue to remain the fundamental strength of the business.
Q4 2025 highlights
Net sales for the fourth quarter of fiscal year 2025 rose by 13 per cent Y-o-Y to $4.6 billion from $4.1 billion, primarily due to higher average aluminium prices and a 1 per cent increase in total rolled product shipments, reaching 957 kilotonnes. Stronger demand in beverage packaging, aerospace and specialty products helped drive growth, partially offset by a decline in automotive shipments.
Net income attributable to common shareholder rose 77 per cent Y-o-Y to $294 million in the FY 2025, primarily reflecting favourable metal price lag, gains from unrealised derivatives, and a reduced income tax provision.
Excluding special items, net income increased 46 per cent to $262 million. Adjusted EBITDA declined 8 per cent from the prior year to $473 million, mainly due to higher aluminium scrap prices and increased operating costs, partially offset by improved product pricing. On a per-tonne basis, adjusted EBITDA fell 9 per cent year-over-year to $494.
"Our disciplined approach to cash management, including financing actions during the fourth quarter, enables us to continue to strategically invest for growth. Our heightened focus on cost efficiency, while we also complete a number of investments to increase rolling and recycling capacity, ensures we are well-positioned to capitalize on long-term market trends while also maintaining a strong liquidity position. This balanced approach supports both our current operations amidst some macro-economic uncertainty and future growth initiatives,” added Dev Ahuja, executive vice president and CFO, Novelis Inc.
Full fiscal year 2024-25
Net sales rose 6 per cent year-over-year to $17.1 billion in fiscal year 2025, driven primarily by higher average aluminium prices and a 2 per cent increase in total flat rolled product shipments, reaching 3,757 kilotonnes. The shipment growth was largely fuelled by record-high volumes in beverage packaging and increased aerospace demand, partially offset by declines in specialties and automotive product shipments.
"While Adjusted EBITDA was slightly down versus the prior year in both periods, I'm proud of our team's adaptability and resilience in navigating headwinds from elevated aluminium scrap prices. We are working on implementing actions and technologies to expand our scrap input types, which we believe can mitigate scrap cost challenges and allow us to continue to provide the high-recycled-content aluminium solutions customers prefer. To drive continuing margin improvements, we are highly focused on optimizing our cost structure and increasing operational efficiency through a number of actions that will streamline our business and ensure we maintain a strong return on invested capital,” said Steve Fisher, president and CEO, Novelis Inc.
In fiscal year 2025, net income attributable to common shareholder rose 14 per cent Y-o-Y to $683 million, primarily driven by favourable metal price lag, unrealised gains on derivatives, and a lower income tax provision. These gains were partially offset by the impact of the Sierre flooding and a decline in Adjusted EBITDA.
Excluding special items, net income increased 11 per cent to $764 million. Adjusted EBITDA declined 4 per cent to $1.8 billion, compared to $1.9 billion in fiscal 2024, mainly due to higher aluminium scrap prices, an unfavourable product mix, and increased operating costs. These factors were partially offset by higher total shipments and improved product pricing.
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