Novelis Inc. announced a robust first quarter for fiscal year 2027, with net income attributable to common shareholders increasing 71% YoY to $164 million. Adjusted EBITDA grew 24% YoY to $516 million, driven by favorable market trends, operational execution, and cost efficiencies. Rolled product shipments were 916 kilotonnes, with the Oswego hot mill now restarted and the Bay Minette plant’s commissioning underway.
Novelis Reports Strong Q1 FY27 Financial Performance
Novelis Inc. has reported a significant increase in its financial performance for the first quarter of fiscal year 2027. The company announced that net income attributable to its common shareholders surged by 71% year-over-year, reaching $164 million. Excluding special items, net income saw an even more substantial rise of 128% to $265 million.
Key Financial Highlights
Adjusted EBITDA for the quarter increased by 24% YoY to $516 million, attributed to lower aluminum scrap prices and cost efficiencies, partially offset by higher net tariffs. The company also saw a 30% increase in Adjusted EBITDA per tonne shipped, reaching $563.
Net sales for the quarter climbed 23% YoY to $5.8 billion. This increase was primarily driven by higher average aluminum prices. Total rolled product shipments were 916 kilotonnes, a 5% decrease YoY, impacted by an estimated 33 kilotonne negative shipment impact related to the Oswego production disruption.
Operational Updates
A significant operational development includes the resumption of operations at the Oswego hot mill in early June. Additionally, the commissioning process for the key assets at the Bay Minette plant is progressing, positioning Novelis for future growth.
Cash Flow and Liquidity
Net cash used in operating activities was an outflow of $455 million, largely related to higher working capital and the Oswego fires, offset by insurance recoveries. Adjusted free cash flow was an outflow of $1.1 billion, impacted by lower operating cash flow and higher capital expenditures for the Bay Minette project.
The company maintained a net leverage ratio of 4.5x at the end of the quarter. Total liquidity stood at $2.1 billion, comprising $1.1 billion in cash and cash equivalents and $1.0 billion in availability under committed credit facilities.
Looking Ahead
Novelis anticipates a return to positive free cash flow in the fourth quarter of the fiscal year, supported by ongoing cost discipline and expected insurance recoveries. The company is confident in its path to deleveraging as capital spending normalizes following the Bay Minette startup.
Source: BSE
