Novelis reports second quarter fiscal year 2026 results

On 4 November 2025, Novelis Inc. reported results for the second quarter of fiscal year 2026.

“Our second quarter financial performance was in line with our expectations for sequential improvement, reflecting solid execution in a continued dynamic environment,” said Steve Fisher, president and CEO, Novelis Inc. “Demand for infinitely recyclable, lightweight aluminium continues to grow as a fundamental material in modern transportation, building and construction, packaging and other end markets around the world. Our diverse global footprint will be further strengthened with the significant investment we are making in the US to construct a state-of-the-art plant in Bay Minette to bring needed capacity to an undersupplied domestic market.”

Net sales for the second quarter of fiscal year 2026 increased 10% versus the prior year period to $4.7 billion, mainly driven by higher average aluminium prices. Total rolled product shipments of 941 kilotonnes were in line with the prior year period. Slightly higher automotive and aerospace shipments were offset by lower beverage packaging and specialty shipments.

Net income attributable to our common shareholder increased 27% versus the prior year to $163 million in the second quarter of fiscal year 2026, primarily driven by favorable metal price lag resulting from rising average local market aluminium premiums, as well as lower charges associated with the prior year Sierre flood, partially offset by lower operating performance. Net income attributable to our common shareholder, excluding special items, decreased 37% year-over-year to $113 million, and Adjusted EBITDA decreased 9% to $422 million in the second quarter of fiscal year 2026. These decreases were primarily driven by a net negative tariff impact and higher aluminium scrap prices, partially offset by higher product pricing and cost efficiency actions. Adjusted EBITDA per tonne was down 8% year-over-year to $448. 

Net cash flow provided by operating activities was $411 million in the first six months of fiscal year 2026. Adjusted free cash flow was an outflow of $499 million in the first six months of fiscal year 2026, compared to the prior year period outflow of $345 million, as higher capital expenditures were partially offset by net cash flow provided by operating activities. Total capital expenditures increased 27% to $913 million for the first six months of fiscal year 2026, due primarily to strategic investments in new rolling and recycling capacity under construction, most notably in the US for the Company’s new greenfield rolling and recycling plant in Bay Minette, Alabama.

“We are pleased with the progress we’re making in advancing our cost efficiency program to drive better margins in a challenging economic environment,” said Dev Ahuja, executive vice president and CFO, Novelis Inc.

The company had a net leverage ratio (Adjusted Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 3.5x at the end of the second quarter of fiscal year 2026. Total liquidity stood at $2.9 billion as of September 30, 2025, consisting of $1.2 billion in cash and cash equivalents and $1.7 billion in availability under committed credit facilities.