The Oswego production interruptions caused rolled product shipments to be an estimated 73 kilotonnes lower than expected, resulting in a negative $53 million impact on Adjusted EBITDA for the quarter. Adjusted EBITDA came in at $459 million, down 3% YoY. Despite the volume pressure, Adjusted EBITDA per tonne shipped improved to $544, up 10% YoY, showing stronger realisation per unit even through a difficult operating period.
The biggest drag on the quarter was other expenses, net, which jumped to $534 million from just $13 million in Q4FY25. This line absorbed $577 million in pre-tax losses directly related to the Oswego fires and that single item is what turned a profitable quarter into a loss. Total expenses for the quarter came in at $4,986 million against $4,284 million in Q4FY25.
Loss before income tax for Q4FY26 stood at $199 million, compared to a profit before tax of $303 million in Q4FY25. The income tax line showed a benefit of $114 million in Q4FY26 versus a provision of $9 million in Q4FY25.
Net loss for Q4FY26 came in at $85 million, reversing from a net income of $294 million in Q4FY25. Net loss attributable to the common shareholder stood at $84 million against a net income of $294 million in Q4FY25. Excluding special items, however, net income attributable to the common shareholder was $227 million, down 13% YoY, a more representative picture of how the core business actually performed.
Oswego Hot Mill Restart Expected by June
On a positive note, the Oswego hot mill is expected to restart ahead of schedule earlier than the end of June estimate previously communicated to the market.
Full Year FY26 Performance of Novelis
The full year tells a similar story: revenue grew, but the Oswego fires ran through the entire year and left a significant dent in profitability.
Net sales for FY26 stood at $18,434 million, up 7.5% on an annual basis from $17,149 million in FY25.
Rolled product shipments for the full year came in at 3,557 kilotonnes, down 5% on an annual basis. Oswego production interruptions caused an estimated 145 kilotonnes of lost shipments, resulting in a $104 million negative impact on Adjusted EBITDA. Tariffs added a further $143 million drag. Adjusted EBITDA for the full year stood at $1.6 billion, down 9% on an annual basis. Adjusted EBITDA per tonne shipped came in at $462, down 4% on an annual basis.
Other expenses, net, for FY26 stood at $960 million, this includes $925 million in pre-tax losses related to the Oswego fires, net of insurance recoveries compared to $134 million in FY25. Total expenses for FY26 came in at $18,418 million compared to $16,307 million in FY25.
Income before income tax for FY26 stood at $16 million, down sharply from $842 million in FY25. Tax provision for the year was $1 million compared to $159 million in FY25.
Net income for FY26 came in at $15 million, down 98% on an annual basis from $683 million in FY25. Net income attributable to the common shareholder stood at $15 million against $683 million in FY25. Excluding special items, net income attributable to the common shareholder was $476 million, down 38% on an annual basis.
On the capacity front, Novelis began commissioning the cold mill at its new US greenfield plant in Bay Minette in March 2026; a meaningful step in the company's long-term expansion plan.
Management Commentary
Steve Fisher, President and CEO of Novelis Inc., said:
"We begin the new fiscal year energised by the strength of the underlying business and confident in our ability to capture strong market demand for high-recycled-content, low-carbon aluminium. At the same time, we are firmly focused on execution, serving our customers, commissioning our state-of-the-art aluminium plant in Bay Minette, and safely restarting Oswego within the next few weeks, well ahead of our previous estimate of the end of June."
Dev Ahuja, Executive Vice President and CFO, Novelis Inc., added:
"As anticipated, net leverage is experiencing some temporary pressure driven by the Oswego fires and capital spending at Bay Minette. With Oswego restarting, Bay Minette nearing completion, and continued strong business momentum, we believe we have a clear line of sight to returning to positive free cash flow by the end of fiscal 2027, setting a firm path towards deleveraging."
About Novelis
Novelis Inc. is driven by its purpose of shaping a sustainable world together. The company is a global leader in the production of innovative aluminium products and solutions and the world's largest recycler of aluminium. Its ambition is to be the leading provider of low-carbon, sustainable aluminium solutions and to achieve a fully circular economy by partnering with its suppliers and customers across the aerospace, automotive, beverage packaging, and specialties industries throughout North America, Europe, Asia, and South America.
Novelis had net sales of $18,434 million in fiscal year 2026. The company is a subsidiary of Hindalco Industries Limited, an industry leader in aluminium and copper, and the metals flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai.
