Norsk Hydro Q3 adjusted EBITDA jumps on higher metal prices

Norsk Hydro ASA

Today 06:08

Overview
Norway aluminium producer's Q3 adjusted EBITDA rose yr/yr on higher metal and alumina prices
Adjusted EPS for Q3 increased to NOK 2.3 from NOK 1.0 last year
Company resumed Alunorte operations after gas supply disruptions and produced first metal at HalZero facility

Outlook
Hydro lowers 2026 year-end capex guidance to around NOK 12.5 bln from NOK 13.5 bln
Company raises net working capital guidance to around NOK 32 bln, up from NOK 30 bln
Hydro prioritizes improving cash conversion and working capital efficiency going forward

Result Drivers
HIGHER METAL PRICES - Co said increased all-in metal prices and alumina prices contributed positively to Q3 results
RECYCLING AND EXTRUSIONS - Improved earnings in Recycling and Extrusions supported Q3 performance
ENERGY COSTS - Higher anode and energy costs in Aluminium Metal and increased energy costs in Bauxite & Alumina due to gas supply disruptions partially offset positive drivers

Company press release: ID:nGNEHpPVX

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
 
NOK 2.30
 
Q3 Net Income
 
NOK 5.26 bln
 
Q3 Adjusted EBITDA
 
NOK 9.09 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 14 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the aluminum peer group is "buy."
Wall Street's median 12-month price target for Norsk Hydro ASA is NOK86.50, about 20.5% above its October 22 closing price of NOK71.76
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Oct 22 - Sweden's Granges Q3 adjusted EBIT jumps 50%, beats estimates
Oct 22 - Swedish aluminium extruder Profilgruppen's Q3 revenue rises
Oct 20 - Global aluminium output falls 1.4% year on year in September -IAI

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)