Novelis Posts Resilient Q3 FY2026 Results Despite Plant Disruption
Adjusted EBITDA decreased 5% to $348 million, impacted by approximately $54 million in losses from Oswego interruptions and $34 million in tariffs.
SEATTLE (Scrap Monster): Novelis Inc., a global leader in aluminum rolling and recycling, reported third quarter fiscal year 2026 net sales of $4.2 billion, up 3% year-over-year, driven by higher average aluminum prices.
Total rolled product shipments declined 11% to 809 kilotonnes, reflecting an estimated 72 kilotonne impact from production disruptions at its Oswego, New York plant following two fire incidents.
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Adjusted EBITDA decreased 5% to $348 million, impacted by approximately $54 million in losses from Oswego interruptions and $34 million in tariffs. However, Adjusted EBITDA per tonne rose 6% year-over-year to $430, supported by cost efficiencies, favorable recycling benefits and improved pricing. The company reported a net loss of $160 million, compared to net income of $110 million a year earlier, primarily due to $327 million in fire-related pre-tax losses and derivative impacts.
For the first nine months, adjusted free cash flow was an outflow of $1.64 billion, reflecting fire-related impacts and higher capital expenditures of $1.58 billion, including investments in its Bay Minette, Alabama recycling and rolling plant. Novelis ended the quarter with $2.6 billion in liquidity and expects to restart Oswego’s hot mill in late Q2 2026.