Norsk Hydro ASA reported robust second-quarter 2026 results, with adjusted EBITDA reaching 8.9 billion Norwegian Krone ($848 million), a slight increase from Q1's $8.7 billion. Revenue rose 6% year-over-year to 56.5 billion Norwegian Krone ($5.38 billion), driven by higher aluminum prices, despite challenging market conditions. Adjusted earnings per share climbed 31.5% year-over-year to 2.21 Norwegian Krone ($0.21), and free cash flow stood at 4 billion Norwegian Krone ($381 million).
The company highlighted operational resilience amidst volatile commodity markets, but emphasized significant geopolitical disruptions in the Middle East affecting its Qatalum operations, which are running at approximately 60% capacity. These disruptions, coupled with supply constraints and logistics challenges, have contributed to a dramatic surge in European duty-paid aluminum premiums, which are expected to be in the range of $660 to $710 per ton for Q3, up from roughly $400 per ton in early 2024. The global aluminum market is estimated to face an undersupply of 0.9 million tonnes for 2026, with a 1.1 million tonne undersupply outside of China.
Norsk Hydro maintained its full-year 2026 capital spending guidance at approximately 13.5 billion Norwegian Krone ($1.29 billion), including 400 million Norwegian Krone ($38 million) for the initial restart of its Slovalco smelter. Realized aluminum and alumina prices positively impacted results by 2.6 billion Norwegian Krone ($247 million). The company anticipates aluminum prices to remain reasonably supportive for the remainder of 2026, though alumina supply may be somewhat oversupplied. Hydro's shares rose 3.66% to $86.76 following the earnings report, reflecting investor confidence in its financial performance and strategic execution despite market uncertainties.
