Norsk Hydro: Integrated Annual Report 2025: Increasing resilience to reach 2030 ambitions

Rhea-AI Summary

Norsk Hydro (NHYDY) posted resilient 2025 results while advancing its 2030 strategy toward low‑carbon aluminium powered by renewables.

Key metrics: Adjusted EBITDA NOK 28.9 billion (2024: NOK 26.3 billion), adjusted RoaCE 10.2%, improvement program savings of NOK 1.4 billion, and a proposed shareholder payout of NOK 5.9 billion (60% of adjusted net income).

Positive

• Adjusted EBITDA increased to NOK 28.9 billion
• Adjusted RoaCE at 10.2%, above 10% target
• Improvement program delivered NOK 1.4 billion
• Shareholder returns totalled NOK 37.6 billion since 2021; proposal of NOK 5.9 billion

Negative

• Strategic workforce reduction in white collar positions
• Proposed restructuring process in Hydro Extrusions
• Pressured markets in Recycling and Extrusions
• Capex guidance reduced during 2025

2025 was another year marked by geopolitical instability. Hydro’s geographic diversification and integrated value chain strengthens the resilience in navigating these challenges. Throughout 2025, Hydro implemented measures to increase agility and accelerate growth to achieve the strategic goals for 2030.  

Aluminium is classified as a critical raw material by EU, the U.S., and NATO, and Hydro’s low-carbon aluminium is therefore well positioned to play a key role in the green transition and the growing need for critical materials in the years ahead.  

“We know that what we produce, where we produce it and how we produce it is more important than ever,” says Eivind Kallevik, President and CEO of Hydro, in his Letter to Stakeholders in the Integrated Annual Report 2025. 

Adjusted EBITDA for 2025 was NOK 28.9 billion, up from NOK 26,3 billion in 2024. The adjusted RoaCE was 10.2 percent, slightly above the target of 10 percent over the cycle. These results reflect the company’s resilience in a challenging market environment.  

To enhance agility, several capital discipline measures were implemented in 2025, including a strategic workforce reduction in white collar positions and a proposed restructuring process in Hydro Extrusions. In addition, the improvement program launched in late 2024 has delivered NOK 1.4 billion in improvements and the capex guiding was reduced during the year.  

Improved earnings allow for competitive shareholder returns. Since 2021, Hydro has distributed NOK 37.6 billion to shareholders, with a proposal to pay out another NOK 5.9 billion for 2025, representing 60 percent of adjusted net income.    

Delivering on Hydro’s strategy 

In 2025, Hydro continued to advance its 2030 ambition of pioneering the green aluminium transition, powered by renewable energy. Despite pressured markets in both Recycling and Extrusions, initiatives in these areas are driving profitable growth. Multiple new long-term power contracts have been signed to secure the energy needed to meet future demand. Decarbonization and technology roadmaps are guiding initiatives across the value chain to reduce emissions, while commercial partnerships are enabling investments in low-carbon solutions. 

Hydro’s position as a robust and transparent supplier of low-carbon aluminium is increasingly valued in a more challenging geopolitical landscape. Going forward Hydro will continue to build on this foundation and grow with the right structure to reach its ambitions for 2030.  

Investor contact:   
Baard Erik Haugen  
+47 92497191 
Erik.Haugen@hydro.com 

 Elitsa Blessi 
+47 91775472  
Elitsa.Blessi@hydro.com   

Media contact:   
Halvor Molland   
+47 92979797  
Halvor.Molland@hydro.com  

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act 

Attachments

• NHY Remuneration report 2025
• Integrated Annual Report 2025

FAQ

What were Norsk Hydro's main 2025 financial results reported on February 13, 2026 (NHYDY)?

Adjusted EBITDA was NOK 28.9 billion and adjusted RoaCE was 10.2 percent. According to the company, EBITDA rose from NOK 26.3 billion in 2024 and RoaCE slightly exceeded the 10% target, reflecting resilience in a tough market.

How much shareholder cash has Norsk Hydro returned and what is the 2025 payout proposal for NHYDY?

Since 2021, Hydro has distributed NOK 37.6 billion to shareholders and proposed NOK 5.9 billion for 2025. According to the company, the 2025 proposal represents 60% of adjusted net income and reflects improved earnings and capital discipline.

What cost and efficiency actions did Norsk Hydro announce for 2025 that affect NHYDY shareholders?

Hydro implemented capital discipline measures including workforce reductions and restructuring in Extrusions. According to the company, the improvement program delivered NOK 1.4 billion in savings and capex guidance was reduced to enhance agility and shareholder returns.

How is Norsk Hydro positioning its low‑carbon aluminium for the 2030 strategy (NHYDY)?

Hydro positions low‑carbon aluminium as critical for the green transition, backed by renewable power contracts and decarbonization roadmaps. According to the company, multiple long‑term power agreements and tech roadmaps support scaling low‑carbon production toward 2030 ambitions.

What operational markets faced pressure in 2025 for Norsk Hydro and how does that affect NHYDY?

Recycling and Extrusions experienced market pressure during 2025, weighing on near‑term performance. According to the company, ongoing initiatives in these segments aim to restore profitable growth despite current sector weakness and restructuring measures.