Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Norsk Hydro As Ord — Q4 2025 Earnings Presentation
63 slides from Norsk Hydro Asa's earnings presentation, Feb 13, 2025
Slide 1: Fourth quarter 2025 Investor presentation
Fourth quarter 2025 Investor presentation February 13, 2026
Slide 2: Cautionary note
Cautionary note Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expan
Slide 3: Solid upstream performance driving strong cash flow generation
Solid upstream performance driving strong cash flow generation Eivind Kallevik, President & CEO February 13, 2026
Slide 4: Safety our key priority
Safety our key priority TRI1) per million hours worked HRI2) per million hours worked 12 months rolling average 12 months rolling average 4 2 2.48 average since Q4’20 3 0.93 average since Q4’20 1 1.75 per end-Q4’253) 2 0.45 per end-Q4’253) 0 Q4’20 Q4’21 Q4’22 Q4’23 Q4’24 Q4’25 Q4’20 Q4’21 Q4’22 Q4’2
Slide 5: Solid results and cash generation
Solid results and cash generation Alumina production Q4 2025 highlights 1,616 kmt 6.6% YoY Alunorte alumina production above nameplate capacity, smelter aluminium production up 2.5% YoY Primary aluminium production 528 kmt 2.5% YoY Securing power for the Norwegian smelter system with two Power produ
Slide 6: Quarterly highlights
Quarterly highlights Delivering on Hydro 2030 strategy: Pioneering the green aluminium transition, powered by renewable energy Strong upstream production Progressing on power sourcing agenda in Norway Cost control measures executed according to plan • Alumina production of 1,616k tonnes in Q4, excee
Slide 7: Alumina market oversupply drives PAX lower in Q4'25
Alumina market oversupply drives PAX lower in Q4’25 World SGA balance Alumina price index (PAX) China bauxite import price (million mt) USD/t (USD/t cif China) 0,7 800 130 0,7 120 0,5 0,5 700 110 100 0,1 0,0 0,0 600 90 80 500 70 60 400 50 300 40 -1,0 -1,1 2024 2025e 2026e Australia Guinea World ex C
Slide 8: LME prices increased throughout Q4
LME prices increased throughout Q4 Estimated market balance LME aluminium prices Regional standard ingot premiums Primary production, million tonnes1) USD/mt NOK/mt USD/t 2,7 4 000 35 000 2,200 2,1 2,000 3 500 1,800 30 000 1,600 3 000 1,400 25 000 1,200 2 500 1,000 20 000 800 2 000 600 15 000 400 1
Slide 9: External data suggesting flat to negative Extrusions markets in 2025
External data suggesting flat to negative Extrusions markets in 2025 Little recovery expected in first half of 2026 Extrusion demand growth estimates Europe Extrusion demand growth estimates North America YoY growth (%) YoY growth (%) 10 10 Quarterly forecast Full year Quarterly forecast Full year f
Slide 10: Financial update
Financial update Trond Olaf Christophersen Executive Vice President & CFO
Slide 11: Financial highlights
Financial highlights Adjusted Reported Revenue EBITDA EBIT NOK billion NOK billion NOK billion -14% 55.1 57.1 10.8 8.0 53.1 7.0 50.5 9.5 47.2 7.7 9.1 7.8 +3.6 5.0 6.4 5.3 +4.3 Free cash flow 6.9 4.4 6.0 6.0 5.6 3.5 3.5 2.9 4.6 NOK billion 2.0 (Q4 25) -1.5 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q4 24 Q1 25 Q2
Slide 12: Adj. EBITDA slightly down, higher upstream prices and volumes offset by lower downstream result
Adj. EBITDA slightly down, higher upstream prices and volumes offset by lower downstream result Q4 2025 vs Q3 2025 NOK billion 0.4 0.3 -1.0 6.0 0.5 0.3 -0.4 0.1 -0.3 -0.2 5.6 -0.5 Other Eliminations Adj. EBITDA Realized Upstream Raw material cost Extrusion and Energy price Fixed cost FX CO2 Adj. EBI
Slide 13: Adj. EBITDA up on higher alumina price and volumes, offset by stronger NOK
Adj. EBITDA up on higher alumina price and volumes, offset by stronger NOK 2025 vs 2024 NOK billion 2.4 0.5 -0.4 0.8 -0.8 0.4 28.9 0.5 26.3 2.3 -2.7 2.6 -0.6 CO2 compensation Other Eliminations Adj. EBITDA 2024 Realized Upstream Raw material cost Extrusion and Energy price Fixed cost FX CO2 Adj. EBI
Slide 14: Net debt decrease of NOK 3.9 billion during Q4
Net debt decrease of NOK 3.9 billion during Q4 Decrease in net debt due to positive free cash flow, partly offset by other cash effects NOK billion Hedging collateral and other Pension assets liabilities) ther assets liabilities) Free cash flow: Excludes hedging collateral (LT/ST restricted cash) an
Slide 15: Hydro Bauxite & Alumina
Hydro Bauxite & Alumina Implied alumina cost and margin USD/mt Results down YoY driven by lower alumina price and negative currency effects, partially offset by higher sales volumes 584 Key figures Q4 2025 Q4 2024 Q3 2025 373 167 392 45 45 Alumina production, kmt 1 616 1 516 1 488 417 346 Total alum
Slide 16: Hydro Aluminium Metal
Hydro Aluminium Metal All-in implied primary cost and margin USD/mt1,4) 800 500 550 Results up YoY driven by higher all-in metal prices and reduced alumina cost, partly offset by negative currency 2 2759) 2 225 2 450 2 375 2 2509) 2 325 effects Key figures Q4 2025 Q4 2024 Q3 2025 1 850 1 925 1 925 P
Slide 17: Metal Markets
Metal Markets Results down YoY due to lower results from sourcing and trading activities and negative currency and inventory valuation effects, partly offset by increased results from recyclers Key figures Q4 2025 Q4 2024 Q3 2025 Recycling production, kmt 181 172 174 Metal products sales, kmt 1) 623
Slide 18: Hydro Extrusions
Extrusion sales volumes Hydro Extrusions Q4 2025 vs Q4 2024 Hydro Extrusions segment sales volume Growth in % Results down YoY on lower margins and sales volumes, 6 8 positive cash flow for full year 2025 -1 -3 -4 -5 Key figures Q4 2025 Q4 2024 Q3 2025 -39 11% 32% 21% 1% 16% 19% External sales volum
Slide 19: Hydro Energy
Hydro Energy Result down YoY mainly due to lower gain on price area differences offset by higher production and higher prices Key figures Q4 2025 Q4 2024 Q3 2025 Power production, GWh 2 645 2329 2019 Net spot sales, GWh 638 254 (62) Southwest Norway spot price (NO2), NOK/MWh 821 628 791 Adjusted EBI
Slide 20: Board of Directors propose distribution of 60% of Adjusted Net Income
Board of Directors propose distribution of 60% of Adjusted Net Income 2025 shareholder distribution proposal Prioritizing shareholder distribution • NOK 3.0 cash dividend per share Dividend 9.9% 7.7% 3.7% 3.6% 3.8% • Representing payout of NOK ~5.9 billion yield1) • 60 percent of adjusted net income
Slide 21: Our priorities
Our priorities 1. 2. 3. 4. 5. Health and safety Maintain Deliver on Execute Seize first robustness while Recycling, Extrusions, on decarbonization opportunities maneuvering and renewable growth and technology in greener aluminium uncertain markets ambitions road map at premium pricing Accelerating g
Slide 22: Additional information
») Hydro Additional information
Slide 23: Key figures – Outlook Q1 2026
Key figures – Outlook Q1 2026 Note that the information on this page is based on forward looking information from current point in time and changes might occur during the coming quarter Bauxite & Alumina Aluminium Metal Metal Markets • Higher results from sourcing and trading • Lower alumina price •
Slide 24: Adj. EBITDA down on lower alumina price and stronger NOK, partially compensated by higher volumes
Adj. EBITDA down on lower alumina price and stronger NOK, partially compensated by higher volumes Q4 2025 vs Q4 2024 NOK billion 7.7 -0.3 0.1 0.0 -3.3 2.2 -1.6 0.4 5.6 0.0 0.4 -0.1 0.5 CO2 compensation Other Eliminations Adj. EBITDA Realized Upstream Raw material cost Extrusion and Energy price Fixe
Slide 25: Market raw material costs in Q4 2025
0.0 0.5 1.0 2.0 2.5 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 1.5 Q3-21 Q3-21 Q4-21 Q4-21 Q1-22 Q1-22 Q2-22 Q2-22 Q3-22 Q3-22 Q4-22 Q4-22 Q1-23 Q1-23 Q2-23 Q2-23 Q3-23 Q3-23 Q4-23 Q4-23 Q1-24 Q1-24 Q2-24 Q2-24 Q3-24 Q3-24 Caustic soda (indexed) Q4-24 Q4-24 Source: Thomson Reuters, PACE, IHS Markit, Pl
Slide 26: Hedging status
Hedging status Aluminium hedges in place for 2026-2027 Strategic hedging status1) NOK Billions • 2026: 460 kt hedged at a price of ~2750 USD/t • 2027: 430 kt hedged at a price of ~2850 USD/t • Pricing mainly in NOK. Net USD exposure hedged via USD/NOK Settlements since 2021 derivatives • Correspondi
Slide 27: Investor Relations in Hydro
Investor Relations in Hydro Baard Erik Haugen Head of Investor Relations Next event t: +47 92497191 e: erik.haugen@hydro.com Q1 2026 Elitsa Blessi Investor Relations Officer April 29, 2026 t: +47 91775472 e: elitsa.blessi@hydro.com Kirsten Margrethe Hovi ESG Advisor For more information see t: +47 9
Slide 28: Hydro - Industries that matter
Hydro Industries that matter
Slide 29: Appendix
») Hydro Appendix
Slide 30: Hydro in a nutshell
Hydro in a nutshell Global footprint, strategic flexibility Full control over value chain and growth optionality • Integrated bauxite and alumina supply to serve own smelters • Captive renewable power and long-term power contracts to smelters. • Upstream assets low on global cost curves. • Leading s
Slide 31: Hydro 2030: Pioneering the green aluminium transition, powered by renewable energy
Hydro 2030: Pioneering the green aluminium transition, powered by renewable energy Key priorities towards 2030 Drive profitable growth in Recycling and Scale renewable power generation Extrusions to strengthen Hydro’s position to support competitiveness and amid green and geopolitical shifts low-car
Slide 32: Aluminium – A critical raw material for the green transition
E-mobility transition Aluminium – A critical raw 2x more BEVs material for the green transition Energy transition in the global car fleet by 2030 vs. 20253) ~30% growth in global grid investments Global semis demand 2024-20301) from 2025 to 2030, approaching Defense and security In million tonnes CA
Slide 33: Long-term outlook remains strong
Long-term outlook remains strong Solid growth in demand for low-carbon recycled and primary aluminium expected towards 2030 and beyond Global aluminium consumption Greener demand growth outpacing rest of the market In million tonnes CAGR 2024-30 CAGR CAGR ~3% 140 Total EU / North 2011-24 2024-30 Ame
Slide 34: Transport and construction key semis demand segments
Transport and construction key semis demand segments Source: CRU, Hydro Analysis Global semis demand 2025: ~105 million tonnes Per segment Per product form Per region 6% 24% 2% 1% 2% 11% 12% 26% 10% 1% 6% 1% 13% 51% 16% 19% 33% 31% 19% 9% Extrusions 8% per segment Transport Construction 15% China Pa
Slide 35: Green transition sectors balance fall in Chinese B&C demand
Green transition sectors balance fall in Chinese B&C demand Electrical and transport sector nearly as large as B&C Chinese semis demand development 2021-2025 (‘000t) Share of total semis demand in China (%) 53 486 2 817 Others 42% 41% 2 213 Electrical 12% 18% Transport 18% 46 104 4 293 19% 1 941 B&C
Slide 36: Long-term growth prospects for extrusion demand remain attractive in key regions and segments
Long-term growth prospects for extrusion demand remain attractive in key regions and segments Lower growth estimates compared to CMD 2024 Extrusion demand estimates (CRU) Extrusion demand BEV headwinds , especially in North America ‘000 tonnes) CAGR 2024 - 30 BEV share of light vehicle production1),
Slide 37: CBAM | Proposed amendments published December 2025
CBAM | Proposed amendments published December 2025 CBAM translating into higher prices Key CBAM effectiveness challenges European duty paid premium1) 500 Scrap loophole must be closed Product scope must be extended to downstream and other materials 400 +40% Legislative proposals amending CBAM were p
Slide 38: Significant exposure to commodity and currency fluctuations
Significant exposure to commodity and currency fluctuations Aluminium price sensitivity +10 USD/mt1) Currency sensitivities NOK million USD BRL EUR 150 Sustainable effect (NOK 110 million) +1.00 NOK/USD +0.10 NOK/BRL +1.00 NOK/EUR AEBITDA 4,900 (520) (210) AEBITDA Adjusted net income One-off reevalu
Slide 39: Bauxite & Alumina sensitivities
Bauxite & Alumina sensitivities Annual sensitivities on adjusted EBITDA Revenue impact • Realized alumina price lags PAX by one month +10 USD/mt1) +10 USD/mt1) +10 USD/mt1) +10 USD/mt1) +0.1 USD/MMBtu1) Cost impact NOK million Bauxite 490 • ~2.45 tonnes bauxite per tonne alumina • Pricing partly LME
Slide 40: Aluminium Metal sensitivities
Aluminium Metal sensitivities Annual sensitivities on adjusted EBITDA Revenue impact • Realized price lags LME spot by ~1-2 months +10 USD/mt1) +10 USD/mt1) +10 USD/mt1) +10 USD/mt1) +10 EUR/mt2) • Realized premium lags market premium by ~2-3 months NOK million Cost impact 210 150 Alumina • ~1.9 ton
Slide 41: Near-term tightening of capex frames in response to market softness
Near-term tightening of capex frames in Growth & Return seeking investments 2) response to market softness Strategic direction remains • Extrusions and recycling are the main growth vehicles, together with renewable power. • Current weak market conditions downstream leads to short-term reduction in
Slide 42: Strong seasonal NOC release in Q4
Strong seasonal NOC release in Q4 Year-end Net Operating Capital balance in line with guiding Net Operating Capital1) 2026 guiding NOK billion, days Net Operating Capital in line with guiding Solid performance despite lower revenues. 53 49 49 49 Strong seasonal effects the main driver behind Q4-25 N
Slide 43: Improvement program to deliver NOK 1.4 billion in 2025
Improvement program to deliver NOK 1.4 billion in 2025 Ambition to deliver NOK 6.5 billion in annual improvements by 2030 Operational Procurement Commercial improvement program improvement program excellence program • Improvement in operational metrics through • Improvements through procurement and
Slide 44: 2026: Cost focus and improvements lifting EBITDA
2026: Cost focus and improvements lifting EBITDA Limited net EBITDA difference between prices and FX rates for LTM vs spot AEBITDA sensitivity 2026 NOK billion ~35 ~33 1.2 0.3 31.0 0.9 AEBITDA Q3-2025 LTM Strategic white-collar Ramp-up of curtailed Improvement programs AEBITDA 2026 AEBITDA @ spot wo
Slide 45: Capital return dashboard 2025
Capital return dashboard 2025 Capital employed1) 8% Capital returns Balance sheet Free cash flow 22 % Bauxite & Alumina adj. RoaCE adj. ND/AEBITDA 2025 24 % Aluminium Metal ~117 10.2 % 0.7 13.0 BNOK Metal Markets 2) 3) 4) BNOK Extrusions Energy 9% 37 % 12% last 5 years vs adj. ND/AEBITDA < 2x 2025 a
Slide 46: Capital return dashboard for Bauxite & Alumina
Capital return dashboard for Bauxite & Alumina Returns above the cost of capital in 2025 reflecting increased alumina prices Capital employed in B&A 21 % 19 % 12 % 22 % ~26 BNOK 2% 9.3 BNOK 10-11% 31 Dec ‘25) -2 % 2021 2022 2023 2024 2025 Adjusted EBITDA FY 2025 Return requirement ~10% Last 5 years
Slide 47: Capital return dashboard for Aluminium Metal & Metal Markets
Capital return dashboard for Aluminium Metal & Metal Markets Investments in recycling capacity to support growth Capital employed in AM / MM 28 % 35 % 31 % 24 % 14 % 11 % 12 % 14 % 10%-11% / ~44 / 10 BNOK 3% -2 % 11.4 / 0.4 BNOK 7-8% 2021 2022 2023 2024 2025 (31 Dec ‘25) Adjusted EBITDA FY 2025 9% 3
Slide 48: Capital return dashboard for Extrusions
Capital return dashboard for Extrusions Returns below cost of capital reflecting market headwinds and lower demand Capital employed in Extrusions 11 % 10 % 9% 24 % ~28 BNOK 2% 1% 3.5 BNOK 7-8% 31 Dec ‘25) 2021 2022 2023 2024 2025 Adjusted EBITDA FY 2025 Return requirement ~7% Last 5 years average AR
Slide 49: Capital return dashboard for Energy
Capital return dashboard for Energy Returns above the cost of capital reflecting the depreciated asset base Capital employed in Energy 30 % 25 % 8% 17 % 4.2 BNOK 6-7% 12 % 13 % ~9 BNOK 31 Dec ‘25) 2021 2022 2023 2024 2025 Adjusted EBITDA FY 2025 Return requirement ~19% Last 5 years average ARoaCE Ca
Slide 50: Hydro profitability growth roadmap
Hydro profitability growth roadmap Main drivers: Improvement efforts, growth and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Sustainability differentiation and NOK bil
Slide 51: Bauxite & Alumina profitability growth roadmap
Bauxite & Alumina profitability growth roadmap Main drivers: Improvement efforts, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Positive m
Slide 52: Aluminium Metal profitability growth roadmap
Aluminium Metal profitability growth roadmap Main drivers: Improvement efforts, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Posi
Slide 53: Metal Markets profitability growth roadmap
Metal Markets profitability growth roadmap Main drivers: Recycling growth, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >8% NOK billion sustaining CAPEX1) 2030 • Positive m
Slide 54: Extrusions profitability growth roadmap
Extrusions profitability growth roadmap Main drivers: Improvement efforts, commercial differentiation, growth projects and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >8% NOK billion sustaining CAPEX1)
Slide 55: Energy profitability growth roadmap
Energy profitability growth roadmap Main drivers: Net spot sales volume and market development Energy excl. REIN JV – Energy excl. REIN JV – Cash flow potential Main further upside drivers AEBITDA potential 2030 after sustaining CAPEX1) 2030 • Additional growth opportunities NOK billion NOK billion
Slide 56: Scenario assumptions
Scenario assumptions Scenarios are not forecasts, but illustrative earnings, cash flow and return potential based on sensitivities • Starting point – AEBITDA Q3 2025 LTM Assumptions used in scenarios Q3 2025 LTM Spot • Cash flow calculated as AEBITDA less EBIT tax and long-term sustaining CAPEX, les
Slide 57: Strong commercial organization maximizing the value of B&A assets
Strong commercial organization maximizing the value of B&A assets External alumina sourcing Long positions in alumina • Pricing should reflect alumina market fundamentals • 4.5 - 5.0 1) million tonnes of external alumina sourced • Selling 4.0 - 4.5 million tonnes per year of alumina annually externa
Slide 58: Bauxite operational mining costs in Paragominas
Bauxite operational mining costs in Paragominas Indicative Paragominas bauxite mining costs • Labor cost 15% • Influenced by Brazilian wage level 23% • Energy cost • Refers to power and fuel cost • Maintenance and consumables 26% 18% • Mainly influenced by Brazilian inflation 19% Labor Energy Suppor
Slide 59: Favorable integrated alumina cost position
Favorable integrated alumina cost position Indicative implied alumina cost composition • Implied alumina cost 2025 - USD 354 per mt1) • Alunorte, Paragominas and external alumina sourcing for resale 4% • Bauxite • Internal bauxite from Paragominas at cost, sourced bauxite from MRN 17% 34% • Energy •
Slide 60: Competitive primary aluminium cash cost
Competitive primary aluminium cash cost Liquid aluminium cash cost 20254) • Primary aluminium cash cost 2025 • All-in implied primary aluminium cash cost1,2) USD 2 450 per mt • LME implied primary aluminium cash cost1,3) USD 2 025 per mt 6% • Alumina • Purchases based on alumina index ~93% 11% • Pur
Slide 61: Market pricing principle applied to internal contracts
Market pricing principle applied to internal contracts Based on external price references Sourcing side Revenue side TWh TWh Spot price 0-2 3) • Long-term contract 1 9.4 (7-11) 1) • Market pricing • Fixed annual Regulated pricing price adjustments • Market pricing 16-182) • Duration varies • Differe
Slide 62: Long-term renewable power contracts ensure robustness
Long-term renewable power Power sourcing for smelters in Europe Power sourcing for Hydro smelters in Norway1) TWh 18 Total consumption contracts ensure robustness 16 14 12 Smelter business operating cost 10 curve 2025 8 USD/tonne 6 4 2 600 2 2 400 0 2025 2027 2029 2031 2033 2035 2037 2039 2 200 Spot
Slide 63: Hydro - Industries that matter
Hydro Industries that matter