#United States #Atlanta #Novelis #Sustainable Growth #Aluminum Solutions

Novelis Reports Fourth Quarter and Full Fiscal Year 2025 Results

On May 12, 2025, Novelis Inc., recognized globally as a leader in sustainable aluminum solutions and the foremost recycler of aluminum, announced its impressive financial performance for the fourth quarter and the entire fiscal year 2025. The company exhibited resilience in challenging market conditions, highlighting strong demand particularly in the beverage packaging sector despite ongoing high scrap prices.

Key Highlights from the Fourth Quarter of Fiscal Year 2025

• - The net income attributable to common shareholders reached $294 million, an extraordinary 77% increase compared to the previous year. Furthermore, excluding special items, the figure rose to $262 million, corresponding to a 46% year-over-year rise.
• - Adjusted EBITDA stood at $473 million, reflecting an 8% decline from the same period last year, although it increased by 29% quarter-over-quarter.
• - Rolled product shipments amounted to 957 kilotonnes, marking a 1% year-over-year increase.
• - The adjusted EBITDA per tonne of shipped product experienced a 9% decline, settling at $494.

Full Fiscal Year 2025 Results at a Glance

• - The company reported a yearly net income attributable to common shareholders of $683 million, showcasing a 14% increase from the prior year. Excluding special items, this figure was $764 million, up 11% year-over-year.
• - Total adjusted EBITDA for the fiscal year was recorded at $1.8 billion, down 4% from fiscal 2024.
• - Rolled product shipments totaled 3,757 kilotonnes, which was a 2% increase compared to the previous year.
• - The adjusted EBITDA per tonne decreased 6% to $480.

Strategic Outlook and Challenges

During the quarterly earnings call, CEO Steve Fisher commented on the company's robust shipment activities, particularly in beverage packaging, which played a crucial role in supporting the company's resilience amid elevated scrap costs.

Fisher stated, "I am proud of our team’s adaptability and resilience in navigating headwinds from elevated aluminum scrap prices. We are working on implementing actions and technologies to expand our scrap input types, aiming to mitigate cost challenges while continuing to provide high-recycled-content aluminum solutions that our customers prefer."

Financial Resilience and Future Investments

The company maintained a net leverage ratio of 2.9x and reported a liquidity of $2.8 billion as of March 31, 2025. Novelis highlighted its commitment to strategic investments, announcing planned capital expenditures amounting to $1.7 billion during the fiscal year, primarily focusing on sustainability initiatives designed to support long-term market demands.

Novelis plans to implement measures that enhance its operational efficiency and cost management strategies, essential to sustaining growth and profitability in the face of volatile market conditions.

Conclusion

In summary, Novelis showcased remarkable growth in both the fourth quarter and throughout the fiscal year 2025, underpinned by strong performance in its main sectors, particularly beverage packaging. The company's strategic focus on sustainability and operational efficiency positions it well to capitalize on future opportunities within the aluminum industry, as it continues its commitment to a more sustainable and circular economy. Investors and stakeholders can look forward to additional developments as Novelis works through its plans for enhancements and growth in the upcoming fiscal years.