Novelis Profit Plunged 36% in First Quarter FY2026
Aluminum | 2025-08-13 12:37:27
The net cash flow provided by operating activities increased by 42% to $105 million during the quarter.
By Paul Ploumis
SEATTLE (Scrap Monster): Novelis Inc. reported results for the first quarter of fiscal year 2026.
In the first quarter of fiscal year 2026, net income attributable to common shareholders was $96 million, a 36% decrease from the same quarter the previous year. Higher aluminum scrap prices contributed to a 17% year-over-year drop in adjusted EBITDA to $416 million. Additionally, adjusted EBITDA per tonne decreased by 18% to $432 million from the same quarter last year.
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During the quarter, operating activities generated a 42% rise in net cash flow, reaching $105 million. In contrast to the $280 million outflow in the previous year's quarter, the adjusted free cash flow was an outflow of $295 million. Strategic investments in newly constructed rolling and recycling capacity accounted for the majority of the $386 million in capital expenditures for the quarter.
Steve Fisher, president and CEO of Novelis Inc., commented on the findings, stating that the company still sees a high demand for aluminum beverage packaging sheets. He said that market challenges, mostly from inherently higher scrap prices, had a negative effect on the quarter's financial performance.
