Novelis Reports Fourth Quarter and Full Fiscal Year 2026 Results (Form 8-K)

Novelis Reports Fourth Quarter and Full Fiscal Year 2026 Results

Q4 Fiscal Year 2026 Highlights

•Net loss attributable to our common shareholder of $84 million, compared to a net income attributable to our common shareholder of $294 million in the prior year, impacted by Oswego, U.S., plant fires in September and November. Net income attributable to our common shareholder, excluding special items, was $227 million, down 13% YoY

•Oswego production interruptions caused rolled product shipments to be an estimated 73 kilotonnes lower than expected, resulting in an estimated negative $53 million impact on Adjusted EBITDA; Net loss was additionally impacted by $577 million in pre-tax losses related to the fires

•Adjusted EBITDA of $459 million, down 3% YoY

•Rolled product shipments of 844 kilotonnes, down 12% YoY

•Adjusted EBITDA per tonne shipped of $544, up 10% YoY

•Oswego hot mill expected to restart ahead of expectations

Full Fiscal Year 2026 Highlights

•Net income attributable to our common shareholder of $15 million, down 98% YoY; Net income attributable to our common shareholder, excluding special items, was $476 million, down 38% YoY

•Oswego production interruptions caused rolled product shipments to be an estimated 145 kilotonnes lower than expected, resulting in an estimated negative $104 million impact on Adjusted EBITDA; Net loss was additionally impacted by $925 million in pre-tax losses related to the fires, net of insurance recoveries

•Adjusted EBITDA of $1.6 billion, down 9% YoY, impacted by an estimated negative $104 million from the Oswego fires and $143 million from tariffs

•Rolled product shipments of 3,557 kilotonnes, down 5% YoY

•Adjusted EBITDA per tonne shipped of $462, down 4% YoY

•Began commissioning the cold mill at our new U.S. greenfield plant in Bay Minette in March

ATLANTA, May 19, 2026 - Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today reported fourth quarter and full fiscal year 2026 results.

"We begin the new fiscal year energized by the strength of the underlying business and confident in our ability to capture strong market demand for high-recycled-content, low carbon aluminum," said Steve Fisher, president and CEO, Novelis Inc. "At the same time, we are firmly focused on execution - serving our customers, commissioning our state-of-the-art aluminum plant in Bay Minette, and safely restarting Oswego within the next few weeks, well ahead of our previous estimate of end of June."

Fourth Quarter Fiscal Year 2026 Financial Highlights

Net sales for the fourth quarter of fiscal year 2026 increased 4% versus the prior year period to $4.8 billion, mainly driven by higher average aluminum prices, partially offset by a 12% decrease in total rolled product shipments to 844 kilotonnes. Lower shipments were driven by Oswego production disruption and softness in some specialties markets due to geo-political conditions.

Net loss attributable to our common shareholder was $84 million in the fourth quarter of fiscal year 2026, compared to a net income attributable to our common shareholder of $294 million in the prior year period. The decrease was due primarily to $630 million in pre-tax net losses related to the Oswego fires, partially offset by favorable metal price lag resulting from rising average local market aluminum premiums. Net income attributable to our common

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shareholder, excluding special items, was down 13% year-over-year to $227 million. Adjusted EBITDA decreased 3% year-over-year to $459 million in the fourth quarter of fiscal year 2026, impacted by an estimated negative $53 million resulting from production interruptions at Oswego and a net negative tariff impact, partially offset by lower aluminum scrap prices and higher Sierre flood insurance recoveries.

Full Year Fiscal Year 2026 Results

Net sales increased 7% versus the prior year to $18.4 billion in fiscal year 2026, primarily driven by higher average aluminum prices, partially offset by a 5% decrease in rolled product shipments to 3,557 kilotonnes due mainly to the Oswego fires.

Fiscal 2026 net income attributable to our common shareholder decreased 98% versus the prior year to $15 million, primarily driven by the Oswego fires, restructuring charges, and unrealized derivative losses in the current year compared to gains in the prior year, partially offset by a favorable change in metal price lag. Net income attributable to our common shareholder, excluding special items, was down 38% year-over-year to $476 million. Adjusted EBITDA decreased 9% to $1.6 billion in fiscal year 2026 driven by an estimated negative $104 million resulting from the Oswego fires and $143 million from tariffs, partially offset by higher product pricing, lower SG&A costs, and favorable foreign exchange.

Net cash used in operating activities was an outflow of $193 million in fiscal year 2026, compared to a net cash inflow of $951 million in the prior year period, largely related to impacts from the Oswego fires and higher working capital from rising aluminum prices. Adjusted free cash flow was an outflow of $2.4 billion in fiscal year 2026, compared to the prior year period outflow of $737 million. The reduction in adjusted free cash flow is mainly driven by impacts from the Oswego fires and a 39% increase in total capital expenditures to $2.3 billion in fiscal year 2026, mainly related to the Company's U.S. greenfield rolling and recycling plant in Bay Minette, Alabama, which is expected to commission in the second half of this calendar year.

The Company had a net leverage ratio (Adjusted Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 4.1x at the end of the fiscal year 2026. Total liquidity stood at $2.8 billion as of March 31, 2026, consisting of $1.3 billion in cash and cash equivalents and $1.5 billion in availability under committed credit facilities.

"As anticipated, net leverage is experiencing some temporary pressure driven by the Oswego fires and capital spending at Bay Minette," said Dev Ahuja, executive vice president and CFO, Novelis Inc. "With Oswego restarting, Bay Minette nearing completion, and continued strong business momentum, we believe we have a clear line of sight to returning to positive free cash flow by the end of fiscal 2027, setting a firm path towards deleveraging."

Update on September and November Fires at Oswego Plant

On September 16, a fire broke out at the Novelis plant in Oswego, New York. On November 20, a second significant fire occurred at the Oswego plant in a location where repair work from the September fire was taking place. Everyone working at the plant was safely evacuated and there were no injuries to employees, contractors or first responders during either event. Both fire events were contained to the hot mill area and did not impact the rest of the plant.

The Oswego plant has made strong progress in advancing recovery efforts, and commissioning activities are ramping up. We expect the hot mill to be back in service in the next few weeks, positioning us to support pent-up demand and normalize shipments over time.

Fourth Quarter and Full Fiscal Year 2026 Earnings Conference Call

Novelis will discuss its fourth quarter and full fiscal year 2026 results via a live webcast and conference call for investors at 7:00 a.m. EST/5:30 p.m. IST on Tuesday, May 19, 2026. The webcast link, presentation materials and access information can also be found at novelis.com/investors. To view slides and listen to the live webcast, visit: https://event.choruscall.com/mediaframe/webcast.html?webcastid=y7K8wuPV. To participate by telephone, participants are requested to register at: http://services.incommconferencing.com/DiamondPassRegistration/register?confirmationNumber=13760092&linkSecurityString=1eea9897f8.

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. 

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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.