Novelis Inc., a sustainable aluminum solutions provider and a leader in aluminum rolling and recycling, 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 chief executive officer, Novelis. “Demand for infinitely recyclable, lightweight aluminum 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 U.S. to construct a state-of-the-art plant in Bay Minette to bring needed capacity to an undersupplied domestic market.”
Second Quarter Fiscal Year 2026 Financial Highlights
Net sales for the second quarter of fiscal year 2026 increased 10 percent versus the prior year period to $4.7 billion, mainly driven by higher average aluminum 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 common shareholders increased 27 percent 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 aluminum premiums, as well as lower charges associated with the prior year Sierre flood, partially offset by lower operating performance. Net income attributable to their common shareholder, excluding special items, decreased 37 percent year-over-year to $113 million. Adjusted EBITDA decreased 9 percent to $422 million in the second quarter of fiscal year 2026. These decreases were primarily driven by a net negative tariff impact and higher aluminum scrap prices, partially offset by higher product pricing and cost efficiency actions. Adjusted EBITDA per tonne was down 8 percent 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 percent 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 U.S. for the company’s new greenfield rolling and recycling plant in Bay Minette, Alabama.
Update on Fire at Oswego Plant in September
On September 16, a fire broke out at the Novelis plant in Oswego, New York. Fortunately, no one was injured. Damage from the fire was primarily localized to the hot mill area. Teams have been working around-the-clock to restore operations at Oswego quickly and safely, while leveraging alternative resources to minimize customer disruption. Based on recent progress, the company now expects to restart the hot mill in December 2025.
Published December 2025
