Novelis Inc., a subsidiary of Hindalco Industries, reported its fourth quarter and full fiscal year 2026 results. The company navigated operational challenges from fires at its Oswego plant, which impacted shipments and financial performance. Despite these pressures, Novelis remains focused on long-term growth through the commissioning of its Bay Minette plant and a continued commitment to sustainability, with management expressing confidence in a return to positive free cash flow by the end of fiscal year 2027.
Fiscal Year 2026 Financial Overview
For the full fiscal year ended March 31, 2026, Novelis reported net sales of $18.4 billion, an increase of 7% compared to the previous year. This growth was largely driven by higher average aluminum prices, which were partially offset by a 5% decrease in total rolled product shipments to 3,557 kilotonnes, primarily due to production disruptions caused by fires at the Oswego facility. Net income attributable to common shareholders was $15 million, while Adjusted EBITDA reached $1.6 billion, down 9% year-over-year.
Fourth Quarter Performance
In the fourth quarter (Jan-Mar 2026), net sales rose 4% to $4.8 billion. The company recorded a net loss attributable to common shareholders of $84 million, largely impacted by pre-tax losses associated with the Oswego plant incidents. Adjusted EBITDA for the quarter was $459 million, a 3% decline compared to the same period in the prior year.
Strategic Milestones and Outlook
The company provided a positive update on its Oswego hot mill, which is expected to restart within the next few weeks, ahead of previous projections. Additionally, Novelis has commenced the commissioning of the cold mill at its new Bay Minette facility in Alabama, a key strategic investment for future growth. The company maintains a strong liquidity position of $2.8 billion as of March 31, 2026, and remains committed to its deleveraging path, targeting a return to positive free cash flow by the end of fiscal year 2027.
Efficiency Initiatives
Novelis successfully executed on its global cost efficiency program, exiting the fiscal year with over $200 million in run-rate savings. Based on this progress, the company has increased its total savings target to $350-400 million by the end of fiscal year 2028, driven by SG&A optimization, labor productivity improvements, and procurement efficiencies.
Source: BSE
