Q2 Fiscal Year 2027 Highlights
-- Net income attributable to our common shareholder of $210 million, up 29%
YoY. Net income attributable to our common shareholder, excluding special
items, was $146 million, up 29% YoY
-- Adjusted EBITDA of $508 million, up 20% YoY
-- Rolled product shipments of 919 kilotonnes, down 2% YoY
-- Adjusted EBITDA per tonne shipped of $553, up 23% YoY
-- Received cumulative insurance recoveries of $519 million through end of
Q2 related to the 2025 Oswego fires
-- Bay Minette cold mill produced its first coil in September
ATLANTA, Nov. 5, 2026 /PRNewswire/ -- Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today reported results for the second quarter of fiscal year 2027.
"We delivered strong quarterly results, reflecting disciplined execution, resilient demand and favorable market conditions," said Steve Fisher, president and CEO, Novelis Inc. "We are excited about the opportunities ahead as Bay Minette moves closer to commercial production, increasing our ability to serve the undersupplied North American market. With the industry's most extensive rolling and recycling network and a market leading position, Novelis is uniquely positioned to meet growing demand for sustainable aluminum solutions."
Second Quarter Fiscal Year 2027 Financial Highlights
Net sales for the second quarter of fiscal year 2027 increased 25% versus the prior year period to $5.9 billion. The increase was primarily due to higher average aluminum prices, partially offset by a 2% decrease in total rolled product shipments to 919 kilotonnes. Higher beverage packaging and aerospace shipments were offset by decreased shipments of automotive and specialty products.
Net income attributable to our common shareholder grew 29% year-over-year to $210 million in the second quarter of fiscal year 2027. The increase was due primarily to insurance recoveries related to the 2025 Oswego fires and a 20% increase in Adjusted EBITDA to $508 million. The improvement in Adjusted EBITDA is mainly due to $39 million in Oswego business interruption insurance recoveries and favorable metal benefit, including both higher scrap consumption and lower scrap aluminum scrap prices. Net income attributable to our common shareholder, excluding special items, increased 29% year-over-year to $146 million.
Net cash used in operating activities was an outflow of $418 million for the first six months of fiscal year 2027, compared to a net cash inflow of $411 million in the prior year period, largely related to unfavorable changes in working capital and impacts from the 2025 Oswego fires. Adjusted free cash flow was an outflow of $1.8 billion for the first six months of the current fiscal year, compared to the prior year period outflow of $499 million. The reduction in adjusted free cash flow is mainly driven by lower operating cash flow, as well as capital expenditures related to the Company's U.S. greenfield rolling and recycling plant in Bay Minette, Alabama. In September, Bay Minette produced its first coil on the cold mill and continues to work toward beginning commercial shipments in the first quarter of fiscal year 2028.
The Company had a net leverage ratio (Adjusted Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 4.7x at the end of the second quarter of fiscal year 2027. Total liquidity stood at $2.0 billion as of September 30, 2026, consisting of $1.3 billion in cash and cash equivalents and $761 million in availability under committed credit facilities.
"As Bay Minette transitions from construction to start-up, reduced capital spending, continued cost discipline and solid underlying business conditions are expected to drive a return to positive free cash flow and mark the beginning of a deleveraging cycle toward the end of this fiscal year," said Dev Ahuja, executive vice president and CFO, Novelis Inc.
Second Quarter Fiscal Year 2027 Earnings Conference Call
Novelis will discuss its second quarter fiscal year 2027 results via a live webcast and conference call for investors at 7:00 a.m. EST/5:30 p.m. IST on Thursday, November 5, 2026. The webcast link, presentation materials and access information can also be found at https://investors.novelis.com. To view slides and listen to the live webcast, visit:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=AGNx8aT2. To participate by telephone, participants are requested to register at: http://services.incommconferencing.com/DiamondPassRegistration/register?confirmationNumber=13762897&linkSecurityString=1f4d023aa8. Following the meeting, the webcast will be available for replay at https://investors.novelis.com.
About Novelis
Novelis Inc. is driven by its purpose of shaping a sustainable world together. We are a global leader in the production of innovative aluminum products and solutions and the world's largest recycler of aluminum. Our ambition is to be the leading provider of low-carbon, sustainable aluminum solutions and to achieve a fully circular economy by partnering with our suppliers, as well as our customers in the aerospace, automotive, beverage packaging and specialties industries throughout North America, Europe, Asia and South America. Novelis had net sales of $18.4 billion in fiscal year 2026. Novelis is a subsidiary of Hindalco Industries Limited, an industry leader in aluminum and copper, and the metals flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai. For more information, visit novelis.com.
Non-GAAP Financial Measures
This news release and the presentation slides for the earnings call contain non-GAAP financial measures as defined by SEC rules. We believe these measures are helpful to investors in measuring our financial performance and liquidity and comparing our performance to our peers. However, our non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures used by other companies. These non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for GAAP financial measures. To the extent we discuss any non-GAAP financial measures on the earnings call, a reconciliation of each measure to the most directly comparable GAAP measure will be available in the presentation slides, which can be found at novelis.com/investors. In addition, the Form 8-K includes a more detailed description of each of these non-GAAP financial measures, together with a discussion of the usefulness and purpose of such measures.
Attached to this news release are tables showing the condensed consolidated statements of operations, condensed consolidated balance sheets, condensed consolidated statements of cash flows, reconciliation of Adjusted EBITDA, Adjusted EBITDA per Tonne, Adjusted Free Cash Flow, Net Leverage Ratio, Net Income attributable to our common shareholder excluding Special Items, and segment information.
Forward-Looking Statements
Statements made in this news release which describe Novelis' intentions, expectations, beliefs or predictions may be forward-looking within the meaning of securities laws. Forward-looking statements include statements preceded by, followed by, or including the words "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," or similar expressions. Examples of forward-looking statements in this news release are: statements concerning market demand and our ability to serve demand; the commissioning, startup timing, operational performance, timing of commercial shipments and expected benefits of the Bay Minette plant; the timing and moderation of capital expenditures; anticipated insurance recoveries and the continuing financial impact of the 2025 Oswego fires, and our expectations regarding future financial results, including our anticipated return to positive free cash flow and the timing and extent of deleveraging. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty and Novelis' actual results could differ materially from those expressed or implied in such statements. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Factors that could cause actual results or outcomes to differ from the results expressed or implied by forward-looking statements include, among other things: disruptions or changes in the business or financial condition of our significant customers or the loss of their business or reduction in their requirements; impact of changes in trade policies, new tariffs, duties and other trade measures; price and other forms of competition from other aluminum rolled products producers and potential new market entrants; the competitiveness of our end-markets, and the willingness of our customer to accept substitutes for our products, including steel, plastics, composite materials and glass; our failure to realize the anticipated benefits of strategic investments; increases in the cost or volatility in the availability of primary aluminum, scrap aluminum, sheet ingot, or other raw materials used in the production of our products; risks related to the energy-intensive nature of our operations, including increases to energy costs or disruptions to our energy supplies; downturns in the automotive and ground transportation industries or changes in consumer demand; union disputes and other employee relations issues; the impact of labor disputes and strikes on our customers; loss of our key management and other personnel, or an inability to attract and retain such management and other personnel; unplanned disruptions at our operating facilities, including as a result of adverse weather phenomena, fires or other force majeure events; economic uncertainty, capital markets disruption and supply chain interruptions; unexpected impact of public health crises on our business,
suppliers, and customers; risks relating to certain joint ventures, subsidiaries and assets that we do not entirely control; risks related to fluctuations in freight costs; risks related to rising inflation and prolonged periods of elevated interest rates; risks related to timing differences between the prices we pay under purchase contracts and metal prices we charge our customers; a deterioration of our financial condition, a downgrade of our ratings by a credit rating agency or other factors which could limit our ability to enter into, or increase our costs of, financing and hedging transactions; risk of rising debt service obligations related to variable rate indebtedness; adverse changes in currency exchange rates; our inability to transact in derivative instruments, or our inability to adequately hedge our exposure to price fluctuations under derivative instruments, or a failure of counterparties to our derivative instruments to honor their agreement; an adverse decline in the liability discount rate, lower-than-expected investment return on pension assets; impairments to our goodwill, other intangible assets, and other long-lived assets; tax expense, tax liabilities or tax compliance costs; risks related to the operating and financial restrictions imposed on us by the covenants in our credit facilities and the indentures governing our Senior Notes; cybersecurity attacks against, disruptions, failures or security breaches and other disruptions to our information technology networks and systems; risks of failing to comply with federal, state and foreign laws and regulations and industry standards relating to privacy, data protection, advertising and consumer protection; our inability to protect our intellectual property, the confidentiality of our know-how, trade secrets, technology, and other proprietary information; risks related to our global operations, including the impact of complex and stringent laws and government regulations; risks related to global climate change, including legal, regulatory or market responses to such change; risks related to a broad range of environmental, health and safety laws and regulations; and risks related to potential legal proceedings or investigations. The above list of factors is not exhaustive. Other important factors are discussed under the captions "Risk Factors" and "Management's Discussion and Analysis" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 and as the same may be updated from time to time in our quarterly reports on Form 10-Q, or in other reports which we from time to time file with the SEC.
Novelis Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
---------------------------- ----------------------------
(in millions) 2026 2025 2026 2025
------------- ------------- ------------- -------------
Net sales $ 5,942 $ 4,744 $ 11,735 $ 9,461
------------- ------------- ------------- -------------
Cost of goods
sold (exclusive
of depreciation
and
amortization) 5,197 4,028 10,062 8,104
Selling, general
and
administrative
expenses 191 173 372 348
Depreciation and
amortization 150 152 300 300
Interest expense
and amortization
of debt issuance
costs 80 68 150 135
Research and
development
expenses 24 24 45 46
Loss on
extinguishment
of debt, net -- 3 -- 3
Restructuring and
impairment
expenses, net 5 31 24 116
Equity in net
income of
non-consolidated
affiliates (4) (5) (4) (6)
Other (income)
expenses, net (11) 46 248 45
------------- ------------- ------------- -------------
5,632 4,520 11,197 9,091
------------- ------------- ------------- -------------
Income before
income tax
provision 310 224 538 370
Income tax
provision 100 61 164 111
------------- ------------- ------------- -------------
Net income 210 163 374 259
------------- ------------- ------------- -------------
Net income
attributable to
our common
shareholder $ 210 $ 163 $ 374 $ 259
============= ============= ============= =============
Novelis Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
September 30, March 31,
(in millions, except number of shares) 2026 2026
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,277 $ 1,254
Accounts receivable, net
-- third parties (net of allowance for
uncollectible accounts of $7 as of
September 30, 2026, and March 31, 2026) 2,607 2,538
-- related parties 295 197
Inventories 5,145 4,401
Prepaid expenses and other current assets 344 354
Fair value of derivative instruments 235 234
Assets held for sale 12 15
------------- -------------
Total current assets 9,915 8,993
Property, plant and equipment, net 9,993 8,811
Goodwill 1,079 1,079
Intangible assets, net 416 442
Investment in and advances to
non--consolidated affiliates 1,007 961
Deferred income tax assets 296 359
Other long-term assets
-- third parties 296 295
-- related parties 7 6
------------- -------------
Total assets $ 23,009 $ 20,946
============= =============
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Current portion of long-term debt $ 73 $ 54
Short-term borrowings 2,631 1,305
Accounts payable
-- third parties 4,925 4,985
-- related parties 455 334
Fair value of derivative instruments 194 824
Accrued expenses and other current liabilities 712 780
------------- -------------
Total current liabilities 8,990 8,282
Long-term debt, net of current portion 7,030 6,551
Deferred income tax liabilities 217 139
Accrued postretirement benefits 449 485
Other long-term liabilities 290 305
------------- -------------
Total liabilities 16,976 15,762
============= =============
Commitments and contingencies
Shareholder's equity
Common stock, no par value; unlimited number
of shares authorized; 606,333,333 shares
issued and outstanding as of September 30,
2026, and March 31, 2026 -- --
Additional paid-in capital 2,023 2,023
Retained earnings 4,144 3,770
Accumulated other comprehensive loss (147) (621)
------------- -------------
Total equity of our common shareholder 6,020 5,172
Noncontrolling interest 13 12
------------- -------------
Total equity 6,033 5,184
------------- -------------
Total liabilities and equity $ 23,009 $ 20,946
============= =============
Novelis Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Six Months Ended
September 30,
-----------------------------
(in millions) 2026 2025
-------------- -------------
OPERATING ACTIVITIES
Net income $ 374 $ 259
Adjustments to determine net cash (used in)
provided by operating activities:
Depreciation and amortization 300 300
(Gain) loss on unrealized derivatives and
other realized derivatives in investing
activities, net (107) 38
(Gain) loss on sale of assets, net (11) 3
Non-cash restructuring and impairment
charges -- 69
Loss on extinguishment of debt, net -- 3
Deferred income taxes, net (4) 22
Equity in net income of non-consolidated
affiliates (4) (6)
Loss on foreign exchange remeasurement of
debt -- 18
Amortization of debt issuance costs and
carrying value adjustments 9 8
Non-cash charges related to 2025 Oswego
fires -- 11
Other, net (2) --
Changes in assets and liabilities including
assets and liabilities held for sale:
Accounts receivable (78) 105
Inventories (733) (251)
Accounts payable 66 (61)
Other assets (161) (21)
Other liabilities (67) (86)
-------------- -------------
Net cash (used in) provided by operating
activities $ (418) $ 411
-------------- -------------
INVESTING ACTIVITIES
Capital expenditures $ (1,543) $ (913)
Proceeds from sales of assets, third party,
net of transaction fees and hedging 15 --
Outflows from investment in and advances to
non-consolidated affiliates, net (8) (3)
Proceeds (outflows) from the settlement of
derivative instruments, net 19 (17)
Proceeds from insurance claims 138 18
Other 8 5
-------------- -------------
Net cash used in investing activities $ (1,371) $ (910)
-------------- -------------
FINANCING ACTIVITIES
Proceeds from issuance of long-term and
short-term borrowings $ 575 $ 1,378
Principal payments of long-term and
short-term borrowings (93) (817)
Revolving credit facilities and other, net 1,330 99
Debt issuance costs (10) (23)
Return of capital to our common shareholder -- (35)
-------------- -------------
Net cash provided by financing activities $ 1,802 $ 602
-------------- -------------
Net increase in cash, cash equivalents and
restricted cash 13 103
Effect of exchange rate changes on cash 10 18
Cash, cash equivalents and restricted cash --
beginning of period 1,261 1,041
-------------- -------------
Cash, cash equivalents and restricted cash --
end of period $ 1,284 $ 1,162
============== =============
Cash and cash equivalents $ 1,277 $ 1,157
Restricted cash (included in other long-term
assets) 7 5
-------------- -------------
Cash, cash equivalents and restricted cash --
end of period $ 1,284 $ 1,162
============== =============
Reconciliation of Adjusted EBITDA to Net Income Attributable to our Common Shareholder
(unaudited)
The following table reconciles Adjusted EBITDA, a non-GAAP financial measure, to net income
attributable to our common shareholder.
Three Months Ended Six Months Ended
September 30, September 30, Year Ended TTM Ended(1)
------------------------- ------------------------
March 31, September 30,
(in millions) 2026 2025 2026 2025 2026 2026
---------- -------------
Net income
attributable
to our common
shareholder $ 210 $ 163 $ 374 $ 259 $ 15 $ 130
=========== ============ ========= ============= ========== =============
Income tax
provision 100 61 164 111 1 54
Interest, net 74 63 138 125 245 258
Depreciation
and
amortization 150 152 300 300 616 616
----------- ------------ --------- ------------- ---------- -------------
EBITDA $ 534 $ 439 $ 976 $ 795 $ 877 $ 1,058
Adjustment to
reconcile
proportional
consolidation $ 16 $ 13 $ 30 $ 27 $ 55 $ 58
Unrealized
losses (gains)
on change in
fair value of
derivative
instruments,
net 17 29 (61) 37 77 (21)
Realized gains
on derivative
instruments
not included
in Adjusted
EBITDA (1) (3) (3) (6) (8) (5)
Gain on sale of
business -- -- -- -- (7) (7)
Loss on
extinguishment
of debt, net -- 3 -- 3 3 --
Restructuring
and impairment
expenses,
net(2) 5 31 24 116 195 103
(Gain) loss on
sale or
disposal of
assets, net (9) 1 (11) 3 (5) (19)
Metal price lag (84) (129) (257) (198) (515) (574)
Sierre flood
losses, net of
recoveries(3) -- 2 -- 8 (27) (35)
2025 Oswego
fires losses,
net of
recoveries(4) (29) 21 236 21 925 1,140
Start-up
costs(5) 23 8 44 13 38 69
Other, net 36 7 46 19 37 64
----------- ------------ --------- ------------- ---------- -------------
Adjusted EBITDA $ 508 $ 422 $ 1,024 $ 838 $ 1,645 $ 1,831
=========== ============ ========= ============= ========== =============
____________________
(1) The amounts in the TTM column are calculated by taking the amounts for
the year ended March 31, 2026, subtracting the amounts for the six months
ended September 30, 2025, and adding the amounts for the six months ended
September 30, 2026.
(2) Restructuring and impairment expenses, net for the three and six months
ended September 30, 2026 include $5 million and $20 million,
respectively, related to the 2025 Efficiency Plan. Restructuring and
impairment expenses, net for the three and six months ended September 30,
2025 include $28 million and $111 million, respectively, related to the
2025 Efficiency Plan.
(3) Sierre flood losses, net of recoveries relate to non-recurring
non-operating charges from exceptional flooding at our Sierre,
Switzerland, plant caused by unprecedented heavy rainfall, net of the
related property insurance recoveries.
(4) 2025 Oswego fires losses, net of recoveries relate to non-recurring
non-operating charges from two significant fires at our Oswego, New York,
plant.
(5) Start-up costs are related to the construction of the Bay Minette plant.
All of these costs are included in Selling, general and administrative
expenses.
The following table presents the calculation of Adjusted EBITDA per tonne.
Three Months Ended
September 30,
----------------------------
2026 2025
------------- -------------
Adjusted EBITDA (in millions) (numerator) $ 508 $ 422
Rolled product shipments (in kt) (denominator) 919 941
------------- -------------
Adjusted EBITDA per tonne $ 553 $ 448
============= =============
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