November 5, 2025

Novelis Inc., the US-based aluminium giant and a subsidiary of India's Hindalco Industries, has cooked up a surprising success story. Even with a fire damaging their Oswego plant in New York last September, Novelis posted a sparkling 27% year-on-year net income jump to $163 million for the quarter ending September. How did they do it? Let's dive in! Sales got a tasty 10% boost to $4.7 billion. This growth came from higher aluminum prices, a savory treat for their revenue. Yet, it wasn’t all sweet for Novelis. Their adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) slipped 9% to $422 million, mainly due to tough tariffs and rising scrap metal costs. The juice made on each tonne of aluminium also fell by 8%, standing at $448. The smokey Oswego fire hit hard. Novelis expects a cash flow hit of $550 to $650 million this fiscal year because of it, with adjusted EBITDA taking a $100 to $150 million hit. Thankfully, the plant is insured for property damage and business losses, and about 70-80% of those costs should come back through insurance in the future. The company has already booked a $21 million charge related to the fire in this quarter. Good news! Novelis plans to restart the Oswego hot mill by December, earlier than their original plan to wait until the next March quarter. "Teams have been working around-the-clock to restore operations at Oswego quickly and safely, while leveraging alternative resources to minimize customer disruption," said the company. Even with some product categories like beverage packaging and specialty products falling, stronger shipments in automotive and aerospace balanced things out. Total rolled product shipments held steady at 941 kilotonnes. Steve Fisher, Novelis Inc's CEO, said, "Our second quarter financial performance was in line with our expectations for sequential improvement, reflecting solid execution in a continued dynamic environment." He also highlighted the company's mighty plans: building a state-of-the-art plant in Bay Minette, Alabama, to add capacity to a market longing for more aluminium. Investment fever is strong! Novelis has already poured $913 million into capital expenditure in just six months, focusing on new rolling and recycling plants. This includes the greenfield rolling and recycling facility in Alabama. After the earnings announcement, shares of Hindalco Industries, Novelis’ Indian parent, dipped 1.8% to Rs 830.70 on the BSE. Indian investors now eagerly await Hindalco’s own earnings report coming this Friday. In a world where industrial fires and tariffs can shake fortunes, Novelis is showing how grit, smart moves, and strategic investments can keep the aluminium wheels turning bright.

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Tags: Novelis, Hindalco, Aluminum, Oswego Plant Fire, Quarterly earnings, Capital Expenditure,