NHYDYThe good news: the machine kept humming
Norsk Hydro’s first quarter of 2026 looked like one of those earnings calls where management keeps saying “operationally strong” while the math does a little side-eye. Adjusted EBITDA came in at NOK 8.668 billion, down from NOK 9.516 billion a year ago, but adjusted earnings per share actually rose to NOK 2.07 from NOK 1.63.
That’s the kind of mixed bag investors know well: the business is still moving product and benefiting from better metal prices, but a few headwinds were sitting there like uninvited guests.
What helped — and what got in the way
Hydro got a boost from:
- lower raw material costs
- higher all-in metal prices
- more alumina and metal sales volume
But those wins were partly swallowed by:
- lower alumina prices
- a stronger NOK
- reduced power production
So yes, profitability held up nicely. But no, it wasn’t a straight-line victory lap.
Cash flow: the buzzkill part
Operating capital rose because higher metal prices and sales meant more money got tied up in the business. That left free cash flow at negative NOK 4 billion, which is not exactly the kind of number that makes equity investors do a happy dance.
Still, the company’s 12-month adjusted RoaCE ended at 10.1%, which suggests Hydro is squeezing decent returns out of a pretty volatile commodity setup. In other words: not glamorous, but competent — and in industrials, competent can be a flex.
Big picture
For you as an investor, the takeaway is pretty simple: Hydro is showing it can keep earnings sturdy even when prices, currency moves, and power production are making life annoying. The stock’s next move will probably depend on whether those pricing tailwinds keep holding up — and whether the cash flow picture starts behaving itself.