Norsk Hydro tops Q2 profit view as higher prices offset Qatar hit (updated)

Norsk Hydro ASA

22/07/2026 06:12

Adds share move, company's guidance for Q3 and analyst comment in paragraphs 4-6.
By Jesus Calero
July 22 (Reuters) - Norwegian aluminium producer Norsk Hydro NHY.OL reported a quarterly core profit above market expectations on Wednesday, as higher aluminium prices and stronger recycling margins outweighed weaker energy output and adverse currency effects.
Hydro benefited from elevated aluminium prices and regional premiums caused by Middle East supply disruptions, although reduced output at its Qatalum joint venture limited the windfall.
Its adjusted earnings before interest, taxes, depreciation and amortisation rose 15% to 8.92 billion Norwegian crowns ($927.0 million) in the April-June quarter, while analysts polled by the company had expected 8.22 billion crowns on average.
For the third quarter, Hydro guided for broadly neutral upstream costs, stable or stronger recycling margins and higher Extrusions sales, while keeping 2026 capital spending plans at 13.5 billion crowns.
Shares of Hydro were up around 4% in early Oslo trading. Analysts from JPMorgan said the better-than-expected outlook and earnings beat could lift 2026 consensus EBITDA by a mid-single-digit percentage.
The improvement was led by Hydro's Aluminium Metal business, where adjusted EBITDA more than doubled to 6.42 billion crowns.
Higher realised metal prices and lower alumina costs more than offset an 8% decline in sales volumes, increased energy and carbon costs and a stronger Norwegian crown, it said.
Aluminium prices reached a four-year high in June as regional supply risks intensified, while physical premiums strengthened in Europe and North America.
The Middle East disruption also widened margins for recycled aluminium, lifting earnings from Hydro's recycling operations to above 900 million crowns, despite little improvement in underlying demand.
At Qatalum, however, the smelter operated at around 60% of capacity due to the war, while Hydro's share of its adjusted EBITDA fell to 316 million crowns from 922 million a year earlier.
Hydro stopped purchasing metal from Qatalum during the quarter, after its marketing and offtake agreement with the venture ended. Hydro said it was in talks with its partner on how Qatalum's metal should be marketed and sold going forward.
($1 = 9.6220 Norwegian crowns)

(Reporting by Jesus Calero in Gdansk, editing by Milla Nissi-Prussak)
((Jesus.calero@thomsonreuters.com))