Norsk Hydro Asa

Latest Results (13.11.2025):

Norsk Hydro Asa's Q3 2025 report highlights a challenging market environment with lower adjusted EBITDA across several business areas, yet the company continues to generate solid cash despite the headwinds. The report outlines strategic workforce and cost reduction initiatives, a major long-term renewable power contract for the Alouette smelter, and a favorable legal verdict—all of which position the company to improve efficiency and long‐term competitiveness.

Financial Performance

Overall adjusted EBITDA decreased compared to previous periods due to weaker alumina prices, stronger NOK, and lower aluminium realization, though segments like Energy and Extrusions showed positive developments. Net income for the quarter was NOK 2,149 million, impacted by derivative and exchange adjustments.

Strategic Initiatives

The report details a cost reduction program aimed at future-proofing the organization, including the planned reduction of approximately 750 white collar positions over 2025 and 2026, which is expected to achieve annual net savings of NOK 1 billion from 2026 onward. This initiative reinforces Hydro’s drive toward enhanced operational efficiency.

Renewable Energy and Power Supply

A significant development in Hydro’s low-carbon aluminium strategy is the Agreement in Principle with the Government of Québec and Hydro-Québec, securing renewable power for the Alouette smelter from 2030 through 2045. This agreement helps stabilize energy costs in a tightening market while bolstering the smelter’s competitive position.

Litigation Outcome

The report confirms a positive legal outcome in which a Dutch court dismissed all claims made in 2021 against Norsk Hydro Asa and its subsidiaries, clearing the company of allegations related to environmental impacts and reinforcing its commitment to transparency and factual evidence in legal disputes.

Business Segment Highlights

Segment analysis reveals mixed results: Bauxite & Alumina saw a decline in adjusted EBITDA driven by lower alumina revenues and higher fixed costs, while Energy improved its performance due to favorable price adjustments. Aluminium Metal experienced a drop in EBITDA owing to currency movements despite increased volumes, and Extrusions showed recovery with higher volumes and improved cost dynamics, even as some regional markets experienced seasonal softness.