Novelis Reports Second Quarter Fiscal Year 2027 Results (Form 8-K)

Novelis Reports Second Quarter Fiscal Year 2027 Results

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, November 5, 2026 - 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.

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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.