Norsk Hydro ASA
DUS:NOH1
Norsk Hydro ASA
In the rolling hills of the Norwegian landscape, Norsk Hydro ASA stands as a linchpin of the global aluminum industry. Established in 1905, the company was initially rooted in hydroelectric energy, a heritage that has profoundly shaped its operations and ethos. Today, Norsk Hydro leverages this heritage, retaining a strong focus on sustainability and renewable energy sources as it navigates the complex waters of modern industry. The company operates across the entire aluminum value chain, from bauxite mining and alumina refining to the production and recycling of high-grade aluminum products. This vertical integration not only ensures quality and reliability but also enables Norsk Hydro to mitigate risks associated with raw material volatility and supply chain disruptions.
Norsk Hydro’s financial strength is deeply interwoven with its strategic focus on innovation and sustainability, which differentiates its product offerings in a competitive market. The company thrives on creating lightweight and durable materials that cater to sectors across transportation, construction, packaging, and electronics. Its earnings are further bolstered by the rising global demand for greener and more efficient materials, positioning aluminum as an essential component in reducing carbon footprints. By investing in advanced technologies and harnessing renewable energy, Norsk Hydro envisions itself not just as an aluminum producer, but as an environmental and industrial leader dedicated to sculpting a sustainable future.
In the rolling hills of the Norwegian landscape, Norsk Hydro ASA stands as a linchpin of the global aluminum industry. Established in 1905, the company was initially rooted in hydroelectric energy, a heritage that has profoundly shaped its operations and ethos. Today, Norsk Hydro leverages this heritage, retaining a strong focus on sustainability and renewable energy sources as it navigates the complex waters of modern industry. The company operates across the entire aluminum value chain, from bauxite mining and alumina refining to the production and recycling of high-grade aluminum products. This vertical integration not only ensures quality and reliability but also enables Norsk Hydro to mitigate risks associated with raw material volatility and supply chain disruptions.
Norsk Hydro’s financial strength is deeply interwoven with its strategic focus on innovation and sustainability, which differentiates its product offerings in a competitive market. The company thrives on creating lightweight and durable materials that cater to sectors across transportation, construction, packaging, and electronics. Its earnings are further bolstered by the rising global demand for greener and more efficient materials, positioning aluminum as an essential component in reducing carbon footprints. By investing in advanced technologies and harnessing renewable energy, Norsk Hydro envisions itself not just as an aluminum producer, but as an environmental and industrial leader dedicated to sculpting a sustainable future.
Revenue Decline: Q4 revenue fell 14% year-over-year to NOK 47 billion, mainly due to lower alumina prices.
Strong Cash Flow: Free cash flow in Q4 reached NOK 4.6 billion, driven by high upstream production and strong metal prices.
Profitability: Adjusted EBITDA was NOK 5.6 billion for Q4, with a full-year adjusted RoaCE of 10.2%, above the long-term target.
Cost Actions: Strategic workforce reduction and planned closure of 5 extrusion plants are expected to yield NOK 1 billion in annual savings starting in 2026.
Dividend Proposal: The Board proposed a cash dividend of NOK 3 per share, representing 60% of adjusted net income.
Upstream Strength: Bauxite & Alumina and Aluminum Metal saw production increases, with Alunorte operating above nameplate capacity and smelter production up 2.5%.
Downstream Weakness: Extrusions saw a negative EBITDA, pressured by weak demand and lower margins, but managed positive full-year cash flow.
Outlook: Management expects stable or slightly increased costs in Q1, production normalization in B&A, and continued market uncertainty due to tariffs and global economic risks.
