Novelis — Q2 FY2026 Earnings Presentation
32 slides from Novelis's earnings presentation, Nov 4, 2025
Slide 1: Hindalco cover letter: Q2FY26 Financial Results of Novelis Inc.
November 4, 2025 BSE Limited National Stock Exchange of India Limited Luxembourg Stock Exchange Scrip Code: 500440 Scrip Code: HINDALCO Scrip Code: US4330641022 Sub: Q2FY26 Financial Results of Novelis Inc., (Wholly owned subsidiary) of Hindalco Industries Limited [“Company”] Ref: a. Regulation 30 o
Slide 2: Novelis Reports Second Quarter Fiscal Year 2026 Results
News Release Novelis Reports Second Quarter Fiscal Year 2026 Results Q2 Fiscal Year 2026 Highlights • Net income attributable to our common shareholder of $163 million, up 27% YoY; Net income attributable to our common shareholder excluding special items was $113 million, down 37% YoY • Adjusted EBI
Slide 3: News Release: Leverage, Oswego Fire Update, About Novelis
The Company had a net leverage ratio (Adjusted Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 3.5x at the end of the second quarter of fiscal year 2026. Total liquidity stood at $2.9 billion as of September 30, 2025, consisting of $1.2 billion in cash and cash equivalents and $1.7 billi
Slide 4: Forward-Looking Statements
aluminum products will continue to grow; our global footprint will be strengthened with the construction of the Bay Minette facility; our cost efficiency program will drive better margins; and our expectation to restart the Oswego hot mill in December 2025. Novelis cautions that, by their nature, fo
Slide 5: Condensed Consolidated Statements of Operations
Novelis Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Six Months Ended September 30, September 30, (in millions) 2025 2024 2025 2024 Net sales $ 4,744 $ 4,295 $ 9,461 $ 8,482 Cost of goods sold (exclusive of depreciation and amortization) 4,028 3,610 8,104 7,091
Slide 6: Condensed Consolidated Balance Sheets
Novelis Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) September March 31, (in millions, except number of shares) 30, 2025 ASSETS 2025 Current assets: Cash and cash equivalents $ 1,157 $ 1,036 Accounts receivable, net — third parties (net of allowance for uncollectible accounts of $7 as of S
Slide 7: Condensed Consolidated Statements of Cash Flows
Novelis Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Six Months Ended September 30, (in millions) 2025 2024 OPERATING ACTIVITIES Net income $ 259 $ 279 Adjustments to determine net cash provided by operating activities: Depreciation and amortization 300 281 Loss (gain) on unreali
Slide 8: Reconciliation of Adjusted EBITDA to Net Income
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
Slide 9: Adjusted EBITDA per Tonne and Adjusted Free Cash Flow
The following table presents the calculation of Adjusted EBITDA per tonne. Three Months Ended September 30, 2025 2024 Adjusted EBITDA (in millions) (numerator) $ 422 $ 462 Rolled product shipments (in kt) (denominator) 941 945 Adjusted EBITDA per tonne $ 448 $ 489 Adjusted Free Cash Flow (unaudited)
Slide 10: Reconciliation of Net Income Excluding Special Items
Reconciliation of Net Income Attributable to our Common Shareholder, Excluding Special Items to Net Income Attributable to our Common Shareholder (unaudited) The following table presents net income attributable to our common shareholder excluding special items, a non- GAAP financial measure. We adju
Slide 11: Segment Information
Segment Information (unaudited) The following tables present selected segment financial information (in millions, except shipments which are in kilotonnes). Selected Operating Results North South Eliminations Three Months Ended September 30, 2025 America Europe Asia America and Other Total Adjusted
Slide 12: Novelis Q2 Fiscal Year 2026 Earnings Presentation
Novelis Q2 Fiscal Year 2026 Earnings Presentation November 4, 2025 Steve Fisher President and Chief Executive Officer Dev Ahuja Executive Vice President and Chief Financial Officer
Slide 13: Safe Harbor Statement
Safe Harbor Statement Forward-looking statements Statements made in this presentation 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 incl
Slide 14: Q2FY26 Highlights
Q2FY26 Highlights • Strong underlying performance with Adjusted EBITDA showing sequential improvement • Q2 Adjusted EBITDA excluding tariff impact is $506/tonne • Working tirelessly to restore the Oswego hot mill and minimize customer disruption • Demand for aluminum products continues to grow, with
Slide 15: Financial Highlights
Financial Highlights 4
Slide 16: Q2 Financial Highlights
Q2 Financial Highlights Q2FY26 vs Q2FY25 • Net Sales up 10% YoY to $4.7 billion • Total FRP shipments of 941kt in line with prior year – Slightly higher automotive and aerospace shipments were offset by lower beverage packaging and specialty shipments • Adjusted EBITDA down 9% YoY to $422 million –
Slide 17: Q2 Adjusted EBITDA Bridge vs. prior year
Q2 Adjusted EBITDA Bridge vs. prior year $ millions 462 23 26 (3) (5) (17) 422 (64) $54 million net negative impact in Q2FY26,vs. favorable PY tariff due to timing Q2FY25 Volume Price/Mix Operating Cost (ex- SG&A FX & Other Net tariffs Q2FY26 net tariffs) 6 Novelis Q2FY26 Earnings
Slide 18: Q2 Segment Results: North America and Europe
Q2 Segment Results Adjusted EBITDA Total FRP Shipments ($ millions) (kts) $250 400 Q2 Shipments down 7%, Adjusted EBITDA -28% 350 $200 $185 300 • Lower specialty and beverage packaging shipments during Logan ramp $150 $134 250 up post-expansion, partially offset by higher automotive shipments North
Slide 19: Q2 Segment Results: Asia and South America
Q2 Segment Results Adjusted EBITDA Total FRP Shipments ($ millions) (kts) $125 $99 200 Q2 Shipments +12%, Adjusted EBITDA +9% $100 $91 $75 150 • Record total shipments driven by higher beverage packaging on Asia strong demand globally, partially offset by lower automotive 100 $50 shipments $25 50 •
Slide 20: Adj Free Cash Flow, Debt and Net Leverage
Adj Free Cash Flow, Debt and Net Leverage $ millions Adjusted free cash flow Debt maturity profile YTD YTD FY26 FY25 $2.35B 2030 2,500 Bonds* Adjusted EBITDA 838 962 ABL 2,000 Interest paid (127) (133) Taxes paid (80) (137) 1,500 $1.25B 2032 Term Loan Capital expenditures (913) (717) 1,000 $750M 203
Slide 21: Structural cost-reduction initiatives underway
Structural cost-reduction initiatives underway • Upward revision to projected FY26 cost reduction based on efficiency actions implemented to date Targeted savings • Now expect to exit FY26 with run-rate savings over $125 million ($ millions) compared to previously raised estimate $100+ million 350 –
Slide 22: Strategic Updates & Outlook
Strategic Updates & Outlook
Slide 23: Fire at Oswego, NY, U.S.
Fire at Oswego, NY, U.S. Incident summary & estimated impact • A significant fire occurred on September 16 at our Oswego, NY, facility in the U.S. • All employees were safely evacuated and there were no injuries • Fire was contained to the hot mill and building structure above; all other critical as
Slide 24: End Market Trends
End Market Trends ` Long-term growth rates & trends (1) Near-term market demand trends BEVERAGE • FY2026-2031 CAGR ~4% (excluding China) PACKAGING (60% of FY25 Shipments) • Sustainability preferences driving package • Global beverage packaging demand remains strong across regions mix shift favoring
Slide 25: Bay Minette Project Update
Bay Minette Project Update • Construction progressing at greenfield rolling & recycling facility in Bay Minette, Alabama, in the US • 600kt total finished goods capacity upon completion – 420kt targeted to beverage packaging, with capacity contracted – 180kt capacity targeted primarily for automotiv
Slide 26: Summary & Outlook
Summary & Outlook • Market fundamentals supporting demand, with strong growth expected to continue in beverage packaging • Cost efficiencies to drive higher run-rate savings over $125 million by FY26 end, and over $300M end of FY28 • Overall scrap prices trending relatively stable to slightly positi
Slide 27: Thank You
Thank You www.novelis.com finx @ Novelis
Slide 28: Appendix
Appendix
Slide 29: Reconciliation of Adjusted EBITDA to Net Income Attributable to our Common Shareholder
Reconciliation of Adjusted EBITDA to Net Income Attributable to our Common Shareholder Q1 Q2 (in $ millions) Q1 Q2 Q3 Q4 FY25 FY26 FY26 Net income attributable to our common shareholder 151 128 110 294 683 96 163 Noncontrolling interests (1) 1 - - - - - Income tax provision 60 51 39 9 159 50 61 Inte
Slide 30: Cash provided by operating activities reconciliation to Adjusted free cash flow
Cash provided by operating activities reconciliation to Adjusted free cash flow Q1 Q2 (in $ m) Q1 Q2 Q3 Q4 FY25 FY26 FY26 Net cash provided by operating activities (1) 74 300 (111) 688 951 105 299 Net cash used in investing activities (1) (354) (365) (459) (512) (1,690) (400) (503) Plus: Cash used i
Slide 31: Adjusted Net debt and Liquidity
Adjusted Net debt and Liquidity Q1 Q2 (in $ m) Q1 Q2 Q3 Q4 FY25 FY26 FY26 Long-term debt, net of current portion 4,859 4,889 4,997 5,773 5,773 6,230 6,324 Current portion of long-term debt 33 30 29 32 32 33 35 Short-term borrowings 623 868 1,019 348 348 320 527 Unamortized carrying value adjustments
Slide 32: Reconciliation of Net income excluding special items
Reconciliation of Net income attributable to our common shareholder, excluding special items Q1 Q2 (in $ m) Q1 Q2 Q3 Q4 FY25 FY26 FY26 Net income attributable to our common shareholder $151 $128 $110 $294 $683 $96 $163 Special Items: Loss on extinguishment of debt, net - - - 7 7 - 3 Metal price lag