Hydro’s adjusted EBITDA for the first quarter of 2025 was NOK 9,516 million, up from NOK 5,411 million in the same quarter last year. The results increased from higher alumina and all-in aluminium prices, and positive currency effects. This was partly offset by higher raw material costs, lower Extrusions volumes and margins, lower alumina sales volumes, and higher fixed cost resulting in an adjusted RoaCE of 10.7 percent over the last twelve months and a free cash flow of NOK 1.3 billion.

• Strong upstream results, Bauxite & Alumina record quarter
• Limited direct tariff exposure, navigating economic uncertainty and risk of lower demand
• 2025 Extrusions outlook down on uncertain markets, adjusting portfolio to cut costs
• Recycling executing on hot metal cost improvements, one-third of 2030 target to be realized in 2025
• Supplying Europe’s power grid by investing in new wire rod casthouse and partnering with the European cable producer NKT

"Hydro delivers a strong result in the first quarter, mainly driven by higher alumina and all-in aluminium prices, combined with positive currency effects. In a more unpredictable world, our integrated business model and strong cost position make Hydro more resilient and better positioned to deliver long-term value,” says Eivind Kallevik, President and CEO of Hydro.

The U.S. trade policy has remained dynamic in recent months, with a significant expansion of Section 232 tariffs. The 25 percent duties now apply to a broader range of imports, including steel, aluminium, and automotive products. Hydro's exposure to aluminium tariffs is limited due to extensive domestic sourcing and pass-through pricing, with minor cross-border risks. In automotive, 6 percent of the European vehicle production was exported to the U.S. in 2024. Hydro Extrusions and Aluminium Metal each maintain an average market share of 15–20 percent in their core segments within the European automotive industry, resulting in limited direct exposure to potential U.S. automotive tariffs. Hydro is closely monitoring economic uncertainty and risk of lower demand, and remains focused on securing stable access to the EU market for its Norwegian operations, while optimizing its manufacturing value chain across the U.S., Mexico, and Canada. Mitigation efforts are ongoing, as the company actively adapts to continued global market uncertainty.

“While the looming trade conflict is expected to have limited direct impact on Hydro’s business, we are closely monitoring the situation and remain ready to adapt to market changes, particularly if reduced consumer confidence leads to broader economic uncertainty,” says Kallevik

Global primary aluminium consumption rose by 1.5 percent year-over-year in the first quarter, driven primarily by a 1.7 percent increase in demand outside China. However, the downstream aluminium market continues to face headwinds, with weak demand and compressed recycling margins in both Europe and North America. In the automotive sector, lower light vehicle production in Europe weighed on aluminium demand, though this was partly offset by increased production of electric vehicles. Meanwhile, the building and construction, as well as industrial sectors, have stabilized at moderate levels, with a slight uptake in order bookings observed throughout the quarter. CRU has lowered its 2025 growth forecasts, cutting North America from 5 to 3 percent and Europe from 3 to 1 percent.

Amid rising uncertainty, Hydro Extrusions is revising down its 2025 annual adjusted EBITDA outlook from the previously indicated NOK 4.5–5.5 billion. Based on CRU’s 2 percent growth forecast for the EU and North America combined, and further supported by remelt margins improving, adjusted EBITDA could reach approximately NOK 4.5 billion. If CRU’s expectation for 2025 demand growth is further delayed, adjusted EBITDA is estimated in the range of NOK 3.5–4.0 billion. Firm measures are being implemented to optimize the portfolio and cut costs in response to the prolonged market weakness. Further restructuring efforts will be executed in 2025 as announced in the fourth quarter of 2024, including the closure of Luce anodizing in France and Birtley in the UK, and the curtailment of an additional 30,000 tonnes of recycling capacity in Puget, France. To further improve operational performance, Hydro Extrusions is launching a cost and energy efficient 12-inch automotive line in Hungary, and upgrading the Tønder, Denmark plant with semi-automatic packing and optimized internal transport, delivering 20 percent higher throughput and FTE savings.

“Our best line of defense in a more challenging market is to focus on what we can control. That’s why we’re accelerating our improvement efforts to strengthen our cost position, securing competitiveness and value creation in a recycling market defined by tight scrap supply and margin pressure,” says Kallevik.

Ongoing weak market activity continues to tighten aluminium scrap supply, pressuring recycling margins and reducing remelt production in Hydro Extrusions and Aluminium Metal Recycling. In response to the cyclical downturn, Hydro has committed to cutting hot metal costs by USD 20–30 per tonne by 2030 in Recycling. These efforts are accelerating in Aluminium Metal recycling, with approximately one-third of the targeted 2030 cost reductions expected to be realized already in 2025, just one year into the program. Supporting long-term ambitions for increased post-consumer scrap use and improved adjusted EBITDA, Hydro has started construction of a EUR 180 million state-of-the-art recycling plant in Torija, Spain. The facility will add 120,000 tonnes of extrusion ingot capacity and recycle up to 70,000 tonnes of post-consumer scrap annually, further advancing the European circular economy.

Hydro is accelerating the commercialization of its low-carbon and recycled aluminium by collaborating with forward thinking customers across multiple sectors. In the first quarter, Vode Lighting became the first North American company to adopt Hydro CIRCAL, integrating low-carbon, recycled aluminium into its bestselling ZipTwo line to reduce emissions, enhance supply chain resilience and support a circular U.S. economy, with plans to transition its entire product range. Additionally, Hydro signed a letter of intent with Nemak to jointly develop low-carbon aluminium casting solutions for the automotive industry.

Hydro is investing NOK 1.65 billion in a new 110,000 tonne wire rod casthouse at its Karmøy smelter, set to begin production in 2028. Coupled to this investment decision, Hydro has signed a long-term wire rod offtake agreement with the European cable producer NKT for a total committed volume of 274,000 tonnes of low-carbon Hydro REDUXA, with an option for additional volumes from 2026 through 2033. The contract with NKT is estimated at a value of approximately EUR 1 billion, depending on the quantity and future metal prices. With global demand to expand or upgrade 80 million kilometers of power lines by 2040, aluminium’s high conductivity, flexibility, light weight and cost-efficiency make it key to building the renewable energy infrastructure of the future.

“Our investment in a new wire rod casthouse at Karmøy, backed by a EUR 1 billion offtake agreement with NKT, demonstrates that demand for greener materials is real and commercially viable,” says Kallevik.

Access to renewable power is vital for low-carbon aluminium growth. An active sourcing agenda continued into the first quarter, and Hydro Energy has secured a new long-term power purchase agreement (PPA) with Norwegian renewable energy producer NTE for a total delivery of 660 GWh in the period from 2027-2029.

Results and market development per business area

Adjusted EBITDA for Bauxite & Alumina increased compared to the first quarter of last year, from NOK 804 million to NOK 5,135 million. The increase was mainly driven by higher alumina prices, lower raw material costs, and positive currency effects partly offset by higher fixed costs and lower sales volumes. PAX started the year at USD 672 per mt, declining throughout the period ending the quarter at USD 378 per mt. The decline reflected Chinese alumina price trends, driven lower by new refinery capacity ramping-up, moving the Chinese alumina market into oversupply and higher alumina exports. Imported bauxite availability improved on the back of higher exports from Guinea.

Adjusted EBITDA for Energy increased marginally compared to the same period last year, from NOK 1,152 million to NOK 1,180 million. Higher prices and price area gains were mainly offset by lower production. Average Nordic power prices in the first quarter of 2025 decreased compared to the same quarter last year and increased compared to the previous quarter. The decrease in prices compared to the same quarter last year is primarily due to improved hydrology, while the increase compared to the previous quarter is mainly due to higher seasonal demand.

Adjusted EBITDA for Aluminium Metal increased compared to the first quarter of last year, from NOK 1,965 million to NOK 2,546 million. Higher all-in metal prices, lower carbon and energy cost, higher CO2 compensation, and positive currency effects were partly offset by higher alumina cost. Global primary aluminium consumption was up 1.5 percent compared to the first quarter of 2024, driven by a 1.7 percent increase in world ex-China. The three month aluminium price has been rangebound throughout the first quarter of 2025, starting the quarter at USD 2,551 per mt and ending at USD 2,533 per mt.

Adjusted EBITDA for Metal Markets decreased compared to the first quarter of last year, from NOK 269 million to a loss of NOK 14 million, due to lower results from sourcing and trading activities, and negative currency effects.

Adjusted EBITDA for Extrusions decreased compared to the first quarter of last year, from NOK 1,437 million to NOK 1,174 million. The decrease was driven by lower extrusion sales volumes and decreased margins from recyclers. European extrusion demand is estimated to have decreased 1 percent in the first quarter of 2025 compared to the same quarter last year, but increased 16 percent compared to the fourth quarter partly driven by seasonality. Demand for building and construction, and industrial segments has stabilized at moderate levels with some uptake in order bookings throughout the quarter. Automotive demand has been negatively impacted by lower European light vehicle production in the first quarter, partly offset by increased production of electric vehicles. North American extrusion demand is estimated to have decreased 4 percent in the first quarter of 2025 compared to the same quarter last year, but increased 8 percent compared to the fourth quarter partly driven by seasonality. Extrusion demand has continued to be weak in the commercial transport segment as trailer builds are still low. Automotive demand has been flat in the first quarter compared to same quarter last year, as weaker auto builds have been offset by favorable electric vehicle mix. Demand has been stable in the building and construction, and industrial segments. While the impacts from the introduction of tariffs and duties are still uncertain at this stage, order bookings are expected to develop better for domestic producers due to lower imports.

Other key financials

Compared to the fourth quarter 2024, Hydro’s adjusted EBITDA increased from NOK 7,701 million to NOK 9,516 million in the first quarter 2025. Improved realized aluminium price, seasonally higher extrusions volumes, and energy results were partly offset by lower alumina sales, higher raw material costs, and currency.

Net income (loss) amounted to NOK 5,861 million in the first quarter of 2025. Net income (loss) included a NOK 1,324 million unrealized derivative gain, mainly on LME related contracts. The result also includes impairment charges of NOK 282 million, and rationalization charges and closure costs of NOK 84 million. Further, foreign exchange gains of NOK 1,708 million are also adjusted for, mainly unrealized, primarily reflecting a gain from a stronger NOK versus EUR, affecting EUR embedded exposure in energy contracts in Norway and other liabilities denominated in EUR, and a stronger BRL versus USD positively impacting USD borrowing in Brazilian entities. The tax effect on these adjustments reflects a standardized tax rate for taxable gains and tax-deductible losses.

Hydro’s net debt decreased from NOK 16.0 billion to NOK 15.1 billion during the first quarter of 2025. The net debt decrease was driven by a positive EBITDA contribution, which was partly offset by mainly investments, build in operating capital, and other operating cash flow, which includes impacts from taxes, performance related pay, and build of long-term CO2 compensation receivables.

Adjusted net debt decreased from NOK 24.1 billion to NOK 21.8 billion, which was driven by reduced net debt of NOK 0.9 billion and reduced adjustments of NOK 1.3 billion, driven by lower collateral and financial liabilities.

Reported earnings before financial items and tax (EBIT), and net income include effects that are disclosed in the quarterly report. Adjustments to EBITDA, EBIT, and net income (loss) are defined and described as part of the alternative performance measures (APM) section in the quarterly report.

Investor contact:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com

Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com

The information was submitted for publication from Hydro Investor Relations and the contact persons set out above. Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. 

Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Except where required by law, Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Attachments

• NHY presentation Q1 2025
• NHY report Q1 2025