“We begin the new fiscal year energized by the strength of the underlying business and confident in our ability to capture strong market demand for high-recycled-content, low carbon aluminum,” said Steve Fisher, president and chief executive officer, Novelis Inc. “At the same time, we are firmly focused on execution – serving our customers, commissioning our state-of-the-art aluminum plant in Bay Minette, Alabama and safely restarting Oswego, New York within the next few weeks.”
Full and Fiscal Year 2026 Results
Net sales increased 7 percent versus the prior year to $18.4 billion in fiscal year 2026, primarily driven by higher average aluminum prices, partially offset by a 5 percent decrease in rolled product shipments to 3,557 kilotonnes due mainly to the Oswego fires.
Fiscal 2026 net income attributable to common shareholder decreased 98 percent versus the prior year to $15 million, primarily driven by the Oswego fires, restructuring charges and unrealized derivative losses in the current year compared to gains in the prior year, partially offset by a favorable change in metal price lag. Net income attributable to each common shareholder, excluding special items, was down 38 percent year-over-year to $476 million. Adjusted EBITDA decreased 9 percent to $1.6 billion in fiscal year 2026 driven by an estimated negative $104 million resulting from the Oswego fires and $143 million from tariffs, partially offset by higher product pricing, lower SG&A costs, and favorable foreign exchange.
Net cash used in operating activities was an outflow of $193 million in fiscal year 2026, compared to a net cash inflow of $951 million in the prior year period, largely related to impacts from the Oswego fires and higher working capital from rising aluminum prices. Adjusted free cash flow was an outflow of $2.4 billion in fiscal year 2026, compared to the prior year period outflow of $737 million. The reduction in adjusted free cash flow is mainly driven by impacts from the Oswego fires and a 39 percent increase in total capital expenditures to $2.3 billion in fiscal year 2026, mainly related to the company’s U.S. greenfield rolling and recycling plant in Bay Minette, which is expected to commission in the second half of this calendar year.
The company had a net leverage ratio (Adjusted Net Debt/trailing 12 months (TTM) Adjusted EBITDA) of 4.1x at the end of the fiscal year 2026. Total liquidity stood at $2.8 billion as of March 31, 2026, consisting of $1.3 billion in cash and cash equivalents and $1.5 billion in availability under committed credit facilities.
Published August 2026