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Novelis (Hindalco subsidiary) reported Q4 FY26 net sales up 4% to $4.8 billion, with full year sales up 7% to $18.4 billion. Q4 net loss was $84 million, and full-year net income was $15 million, significantly impacted by the Oswego plant fires. Adjusted EBITDA for Q4 was $459 million (down 3%) and $1.6 billion for the full year (down 9%), also affected by fires and tariffs. Shipments were down due to the Oswego disruptions.
Growth is driven by a strong focus on high-recycled-content aluminum. The company is aggressively pursuing cost efficiency, aiming for $350-400 million in total savings by FY28.
Notably, the Oswego hot mill is restarting sooner than expected. The new Bay Minette plant's cold mill began commissioning in March, on track for full operation in late 2026, boosting North American capacity.
Key metrics include Q4 Adjusted EBITDA per tonne up 10% to $544. Full year Adjusted EBITDA per tonne was $462. Net leverage increased to 4.1x due to fire impacts and Bay Minette capex.
Management sees resilient demand and a clear path to positive free cash flow by end of FY27, which should help reduce leverage. FY27 capex is projected at $2.1-2.4 billion.