Novelis Reports Fourth Quarter and Full Fiscal Year 2025 Results (Form 8-K)

Novelis Reports Fourth Quarter and Full Fiscal Year 2025 Results

Strong improvement quarter-over-quarter despite continued elevated scrap prices

Q4 Fiscal Year 2025 Highlights

•Net income attributable to our common shareholder of $294 million, up 77% YoY; Net income attributable to our common shareholder excluding special items was $262 million, up 46% YoY

•Adjusted EBITDA of $473 million, down 8% YoY, up 29% QoQ

•Rolled product shipments of 957 kilotonnes, up 1% YoY

•Adjusted EBITDA per tonne shipped of $494, down 9% YoY

Full Fiscal Year 2025 Highlights

•Net income attributable to our common shareholder of $683 million, up 14% YoY; Net income excluding special items was $764 million, up 11% YoY

•Adjusted EBITDA of $1.8 billion, down 4% YoY

•Rolled product shipments of 3,757 kilotonnes, up 2% YoY

•Adjusted EBITDA per tonne shipped of $480, down 6% YoY

•Net leverage ratio of 2.9x

•Maintained the recycled content of our products at 63% in fiscal 2025

ATLANTA, May 12, 2025 - Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today reported results for the fourth quarter of fiscal year 2025.

"Strong shipments in both the fourth quarter and full fiscal year, led by robust demand for beverage packaging, continue to underpin the fundamental strength of our business," said Steve Fisher, president and CEO, Novelis Inc. "While Adjusted EBITDA was slightly down versus the prior year in both periods, I'm proud of our team's adaptability and resilience in navigating headwinds from elevated aluminum scrap prices. We are working on implementing actions and technologies to expand our scrap input types, which we believe can mitigate scrap cost challenges and allow us to continue to provide the high-recycled-content aluminum solutions customers prefer. To drive continuing margin improvements, we are highly focused on optimizing our cost structure and increasing operational efficiency through a number of actions that will streamline our business and ensure we maintain a strong return on invested capital."

Fourth Quarter Fiscal Year 2025 Financial Highlights

Net sales for the fourth quarter of fiscal year 2025 increased 13% versus the prior year period to $4.6 billion, mainly driven by higher average aluminum prices and a 1% increase in total rolled product shipments compared to the prior year period to 957 kilotonnes. Higher demand for beverage packaging, aerospace and specialty products were partially offset by lower automotive shipments.

Net income attributable to our common shareholder increased 77% versus the prior year to $294 million in the fourth quarter of fiscal year 2025, primarily driven by favorable metal price lag, gains in unrealized derivatives, and a lower income tax provision. Net income attributable to our common shareholder, excluding special items, was up 46% year-over-year to $262 million. Adjusted EBITDA decreased 8% versus the prior year to $473 million in the fourth quarter of fiscal year 2025, primarily driven by higher aluminum scrap prices and operating costs, partially offset by higher product pricing. Adjusted EBITDA per tonne was down 9% year-over-year to $494.

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Full Year Fiscal Year 2025 Results

Net sales increased 6% versus the prior year to $17.1 billion in fiscal year 2025, primarily driven by higher average aluminum prices and a 2% increase in total flat rolled product shipments to 3,757 kilotonnes. The increase in shipments is mainly due to record high beverage packaging shipments and higher shipments for aerospace products, partially offset by lower shipments of specialties and automotive products.

Fiscal 2025 net income attributable to our common shareholder increased 14% versus the prior year to $683 million. The increase is mainly driven by a favorable change in metal price lag and unrealized gains on derivatives, as well as lower income tax provision, partially offset by impacts from the Sierre flooding and lower Adjusted EBITDA. Net income attributable to our common shareholder, excluding special items, was up 11% year-over-year to $764 million. Adjusted EBITDA decreased 4% to $1.8 billion in fiscal year 2025, compared to $1.9 billion in fiscal 2024, driven mainly by higher aluminum scrap prices compared to the prior year, unfavorable product mix, and higher operating cost, partially offset by higher total shipments and higher product pricing.

Net cash flow provided by operating activities was $1.0 billion in fiscal year 2025 compared to $1.3 billion in the prior fiscal year, primarily due mainly to lower Adjusted EBITDA and higher metal costs partially offset by improvement in metal price lag. Adjusted Free Cash Flow was an outflow of $737 million in fiscal year 2025 compared to a prior year period outflow of $75 million, due primarily to a 24% year-over-year increase in capital expenditures and lower cash flow from operating activities. Fiscal year 2025 capital expenditures total $1.7 billion and reflect the planned increase in strategic, sustainability-focused, capital investment projects that support increased long-term customer demand.

"Our disciplined approach to cash management, including financing actions during the fourth quarter, enables us to continue to strategically invest for growth," said Dev Ahuja, executive vice president and CFO, Novelis Inc. "Our heightened focus on cost efficiency, while we also complete a number of investments to increase rolling and recycling capacity, ensures we are well-positioned to capitalize on long-term market trends while also maintaining a strong liquidity position. This balanced approach supports both our current operations amidst some macro-economic uncertainty and future growth initiatives."

In January 2025, Novelis issued $750 million in senior unsecured notes due January 2030, with the proceeds primarily used to repay outstanding borrowings under our ABL revolver. In March 2025, the company borrowed $1.25 billion of term loans that mature in March 2032, with the proceeds primarily used to repay previously issued term loans that were due in 2026 and 2028.

The company had a net leverage ratio (Adjusted Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 2.9x at the end of the fourth quarter of fiscal year 2025. Total liquidity stood at $2.8 billion as of March 31, 2025, consisting of $1.0 billion in cash and cash equivalents and $1.7 billion in availability under committed credit facilities.

Fourth Quarter and Full Fiscal Year 2025 Earnings Conference Call

Novelis will discuss its fourth quarter and full fiscal year 2025 results via a live webcast and conference call for investors at 7:00 a.m. EDT/4:30 p.m. IST on Monday, May 12, 2025. The webcast link, presentation materials and access information can also be found at novelis.com/investors. To view slides and listen to the live webcast, visit: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Q4tFEHr6. To participate by telephone, participants are requested to register at: http://services.incommconferencing.com/DiamondPassRegistration/register?confirmationNumber=13753396&linkSecurityString=1df1a26f6c

About Novelis

Novelis Inc. is driven by its purpose of shaping a sustainable world together. We are a global leader in the production of innovative aluminum products and solutions and the world's largest recycler of aluminum. Our ambition is to be the leading provider of low-carbon, sustainable aluminum solutions and to achieve a fully circular economy by partnering with our suppliers, as well as our customers in the aerospace, automotive, beverage packaging and specialties industries throughout North America, Europe, Asia and South America. Novelis had net sales of $17.1 billion in fiscal year 2025. Novelis is a subsidiary of Hindalco Industries Limited, an industry leader in aluminum and copper, and the metals flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai. For more information, visit novelis.com. 

Non-GAAP Financial Measures

This news release and the presentation slides for the earnings call contain non-GAAP financial measures as defined by SEC rules. We believe these measures are helpful to investors in measuring our financial performance and liquidity and comparing our performance to our peers. However, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies. These non-GAAP financial

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measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for GAAP financial measures. To the extent we discuss any non-GAAP financial measures on the earnings call, a reconciliation of each measure to the most directly comparable GAAP measure will be available in the presentation slides, which can be found at novelis.com/investors. In addition, the Form 8-K includes a more detailed description of each of these non-GAAP financial measures, together with a discussion of the usefulness and purpose of such measures.

Attached to this news release are tables showing the condensed consolidated statements of operations, condensed consolidated balance sheets, condensed consolidated statements of cash flows, reconciliation of Adjusted EBITDA, Adjusted EBITDA per Tonne, Adjusted Free Cash Flow, Adjusted Net Leverage Ratio, Net Income attributable to our common shareholder excluding Special Items, and segment information.