Novelis Inc, the global leader in sustainable aluminum rolling and recycling, announced its financial results for the second quarter of fiscal year 2026, highlighting steady progress and continued strategic expansion. “Our second-quarter results align with our expectations for sequential improvement and reflect strong execution amid ongoing market volatility,” said Steve Fisher, President and CEO of Novelis Inc. “The global demand for lightweight, infinitely recyclable aluminum continues to rise across transportation, construction, packaging, and other key sectors. Our upcoming Bay Minette facility in the US will further enhance our ability to meet growing domestic demand.”
Novelis Inc reported strong top-line growth in the second quarter of fiscal year 2026, with net sales rising 10% year-over-year to $4.7 billion. The increase was largely driven by higher average aluminum prices, reflecting steady global demand across key end-use sectors. Total rolled product shipments stood at 941 kilotonnes, maintaining parity with the same period last year. While automotive and aerospace shipments showed modest gains, these were balanced by softer volumes in beverage packaging and specialty segments.
The company’s net income rose 27% from the prior year to $163 million, supported by favorable metal price lag and the absence of one-time charges related to the previous year’s Sierre flood incident. Despite this improvement in profitability, operational headwinds persisted, impacting margins. Adjusted EBITDA came in at $422 million, down 9% from the prior year, primarily due to the impact of tariffs and higher aluminum scrap prices. These challenges were partially offset by improved product pricing and internal cost control measures.
Adjusted EBITDA per tonne decreased 8% year-over-year to $448, reflecting the combined effects of market volatility and inflationary pressures. Commenting on the performance, Dev Ahuja, Executive Vice President and Chief Financial Officer of Novelis Inc., said, “We’re executing on cost efficiency programs to strengthen margins despite the macroeconomic challenges.” The company’s focus remains on operational excellence and disciplined cost management to support long-term financial stability.
For the first half of fiscal 2026, Novelis generated $411 million in operating cash flow. However, adjusted free cash flow registered an outflow of $499 million, primarily due to increased capital spending on key growth projects. Total capital expenditures rose 27% to $913 million as the company continued to invest in expanding its rolling and recycling capabilities, including the construction of its state-of-the-art Bay Minette facility in Alabama. These strategic investments are aimed at enhancing production capacity and supporting sustainable growth across global markets.
As of September 30, 2025, Novelis maintained a solid financial position, with a net leverage ratio of 3.5x (Adjusted Net Debt to trailing twelve months Adjusted EBITDA). The company’s total liquidity stood at $2.9 billion, comprising $1.2 billion in cash and cash equivalents and $1.7 billion in available credit lines. This strong liquidity profile provides Novelis with the flexibility to fund ongoing expansion projects while ensuring resilience in a dynamic economic environment.
On September 16, 2025, a fire occurred at Novelis’ Oswego, New York facility. Thankfully, no injuries were reported. The damage was contained to the hot mill area. Restoration efforts are underway, and the company expects operations to resume by December 2025.“We deeply appreciate the dedication of our employees and the support from partners and customers,” said Mr Fisher. “We remain confident in our operational resilience and recovery plan.”
Novelis Inc is driven by a commitment to shaping a more sustainable world through collaboration. As a global leader in innovative aluminum products and solutions, we are also the world’s largest recycler of aluminum. Our goal is to lead the way in providing low-carbon, sustainable aluminum solutions and to establish a fully circular economy by working closely with suppliers and customers across industries such as aerospace, automotive, beverage packaging, and specialties in North America, Europe, Asia, and South America.
