Novelis Posts Resilient Q3 FY2026 Results Despite Plant Disruption
Aluminum | 2026-02-12 07:01:52
Adjusted EBITDA decreased 5% to $348 million, impacted by approximately $54 million in losses from Oswego interruptions and $34 million in tariffs.
By Paul Ploumis
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.
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What will most influence Novelis’ performance in FY2026?
Frequently Asked Questions
- What drove the decline in shipments?
Production disruptions at the Oswego, NY plant following two fire incidents reduced shipments by an estimated 72 kilotonnes.
- How did Adjusted EBITDA perform?
Adjusted EBITDA decreased 5% year-over-year to $348 million, though EBITDA per tonne improved 6% to $430.
- Why did Novelis report a net loss?
A $327 million fire-related pre-tax loss and derivative impacts led to a $160 million net loss versus $110 million net income last year.
