Novelis Reports First Quarter Fiscal Year 2026 Results (Form 8-K)

Novelis Reports First Quarter Fiscal Year 2026 Results

Q1 Fiscal Year 2026 Highlights

•Net income attributable to our common shareholder of $96 million, down 36% YoY; Net income attributable to our common shareholder excluding special items was $116 million, down 43% YoY

•Adjusted EBITDA of $416 million, down 17% YoY

•Rolled product shipments of 963 kilotonnes, up 1% YoY

•Adjusted EBITDA per tonne shipped of $432, down 18% YoY

ATLANTA, August 11, 2025 - Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today reported results for the first quarter of fiscal year 2026.

"We continue to see strong demand for aluminum beverage packaging sheet supporting top-line growth and the need for new capacity under construction at our plant in Bay Minette, Alabama," said Steve Fisher, president and CEO, Novelis Inc. "While market headwinds mainly from structurally higher scrap prices negatively impacted financial performance in the quarter, we are making solid progress on our comprehensive cost reduction program, which we expect will lower our cost base and improve our margins. We have already implemented a round of organization redesign, footprint rationalization and process improvement actions to drive simplification and efficiencies. We believe these actions will accelerate anticipated run-rate cost savings to over $100 million by the end of this fiscal year, exceeding our previously estimated target of approximately $75 million."

First Quarter Fiscal Year 2026 Financial Highlights

Net sales for the first quarter of fiscal year 2026 increased 13% versus the prior year period to $4.7 billion, mainly driven by higher average aluminum prices and a 1% increase in total rolled product shipments compared to the prior year period to 963 kilotonnes. Higher beverage packaging shipments were partially offset by lower automotive and specialty shipments.

Net income attributable to our common shareholder decreased 36% versus the prior year to $96 million in the first quarter of fiscal year 2026, primarily driven by restructuring charges and lower operating performance, partially offset by favorable metal price lag. Net income attributable to our common shareholder, excluding special items, decreased 43% year-over-year to $116 million and Adjusted EBITDA decreased 17% to $416 million in the first quarter of fiscal year 2026. These decreases were primarily driven by higher aluminum scrap prices, unfavorable product mix, and a net negative tariff impact, partially offset by higher product pricing, lower SG&A costs and favorable foreign exchange. Adjusted EBITDA per tonne was down 18% year-over-year to $432.

Net cash flow provided by operating activities increased 42% to $105 million in the first three months of fiscal year 2026, primarily due to lower net working capital, partially offset by lower Adjusted EBITDA. Adjusted free cash flow was an outflow of $295 million in the first three months of fiscal year 2026, compared to the prior year period outflow of $280 million, with higher capital expenditures partially offset by higher net cash flow provided by operating activities. Total capital expenditures were $386 million for the first three months of fiscal year 2026, primarily attributed 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.

"We are finding opportunities to streamline our cost structure in response to the challenging external environment, freeing up resources that can be invested to meet continued growing market demand for low-carbon, more sustainable aluminum products," 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 3.2x at the end of the first quarter of fiscal year 2026. Total liquidity stood at $3.0 billion as of June 30, 2025, consisting of $1.1 billion in cash and cash equivalents and $2.0 billion in availability under committed credit facilities. In June 2025,

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Novelis issued $400 million of tax-exempt bonds with a mandatory tender for purchase in 2032 and maturation in 2055, with the proceeds to be used to finance a portion of the construction costs at Bay Minette.

First Quarter Fiscal Year 2026 Earnings Conference Call

Novelis will discuss its first quarter fiscal year 2026 results via a live webcast and conference call for investors at 7:00 a.m. EDT/4:30 p.m. IST on Monday, August 11, 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=DhEJtNH5. To participate by telephone, participants are requested to register at: https://services.incommconferencing.com/DiamondPassRegistration/register?confirmationNumber=13755053&linkSecurityString=1e30de2897

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 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.