Novelis Q2 FY2026 Net Income Jumped Despite Lower EBITDA and Fire-Related Impact

Also, total capital expenditures increased 27% to $913 million for the first six months of fiscal year 2026.

SEATTLE (Scrap Monster): Atlanta-based Novelis Inc. has announced its financial results for the second quarter of fiscal year 2026, reporting higher net income but lower earnings before interest, taxes, depreciation, and amortization (EBITDA) amid market headwinds.

The company’s net income rose 27% year-on-year to $163 million, reflecting improved cost management and operational efficiency. However, adjusted EBITDA declined 9% to $422 million, mainly due to the negative impact of tariffs and elevated aluminum scrap costs.

RECOMMENDED ARTICLES:

Novelis 2025 Sustainability Report Highlights Notable Progress

Novelis Profit Plunged 36% in First Quarter FY2026

During the first six months of FY2026, operating cash flow stood at $411 million, while adjusted free cash flow showed an outflow of $499 million, compared to a $345 million outflow during the same period last year. Capital expenditures climbed 27% to $913 million, reflecting continued investment in strategic growth projects.

Novelis warned that its annual free cash flow could be negatively affected by $550–650 million following a September fire at its New York facility, which is also expected to reduce adjusted EBITDA by $100–150 million.

Commenting on the results, Dev Ahuja, Executive Vice President and CFO of Novelis, said the company remains focused on enhancing cost efficiency and margin improvement despite a challenging macroeconomic backdrop.