Hydro: Operational strength delivers solid results in 2nd quarter 2026
Hydro’s adjusted EBITDA for the second quarter of 2026 was NOK 8,923 million, up from NOK 7,790 million in the same quarter last year. Higher aluminium prices and product premiums contributed positively, together with improved earnings in the recycling business.
Lower energy production due to hydrology and adverse effects from a stronger NOK contributed negatively. Hydro delivered strong profitability in the quarter, with adjusted earnings per share increasing from NOK 1.7 in the second quarter 2025 to NOK 2.2 in the second quarter 2026.
Free cash flow was NOK 4 billion, with strong adjusted EBITDA partially offset by investments and tax payments. The twelve month adjusted RoaCE ended at 10.9 percent.
- Slovalco 75,000 tonnes restart announced on July 1
- Realized all-in metal prices up 14 percent from first quarter
- All-time high casthouse production in Norway, upstream operational performance at high level
- Recycling results strengthening, adjusted EBITDA NOK 0.9 billion
- Power sourcing continuing, further 5 TWh sourced in second quarter
On July 1, the planned restart of the Slovalco smelter was announced, following an agreement on long-term framework conditions with the Slovak government, including indirect carbon cost compensation. The smelter will restart 75,000 tonnes of capacity during the second half of 2026.
“This quarter reflects both Hydro’s operational strength and the opportunities for European industry. Alongside strong financial results driven by solid operational performance and supportive markets, the agreement on a framework to restart Slovalco is an important step toward rebuilding European aluminium capacity. It also demonstrates that competitive energy and predictable framework conditions unlock investments and strengthen Europe’s industrial resilience,” says Eivind Kallevik, President and CEO of Hydro.
The second quarter demonstrated continued strong operational performance across Hydro’s upstream businesses. At Alunorte, the refinery productivity increased year on year. In Aluminium Metal, the ramp up of previously curtailed capacity at the Norwegian smelters continued through the quarter, contributing to higher production volumes compared to the same period last year and reinforcing Hydro’s position as a reliable supplier to the European market.
Recycling continued to deliver strong results during the quarter, particularly in North America, where favorable market conditions and robust value added product premiums, supported margins and volumes. Adjusted EBITDA from the recycling operation was over NOK 900 million in the quarter. The continued performance highlights the strength of Hydro’s integrated and increasingly circular business model.
To source competitively priced renewable energy for the aluminium smelters remains a key priority for Hydro. In early July, a 10-year agreement was signed with Eviny, covering 0.5 TWh annually for the period 2031 to 2040.
With the latest contract, Hydro has covered 85 percent of its total sourcing need in Norway in the 2030s. However, further development of renewable power is needed to support Hydro’s long-term growth and development plans.
“Hydro has secured a strong power position in Norway well into the next decade. At the same time, Europe needs significantly more renewable power generation if industries like aluminium are to remain competitive and continue investing for the future,” says Kallevik.
Hydro also continued to shape the market for low-carbon and recycled aluminium. During the quarter, Hydro entered a five year supply agreement with Nexans for approximately 85,000 tonnes of low-carbon aluminium wire rod.
The agreement supports Europe’s growing demand for electricity infrastructure, while strengthening Hydro’s position in value added low-carbon aluminium. It also aligns with the recent expansion of wire rod capacity at Karmøy, supporting long-term growth opportunities driven by the energy transition.
