Investment Rating - Industry rating: Recommended [5] Core Insights - In Q2 2025, bauxite production increased by 11% quarter-on-quarter to 2.734 million tons, while alumina production rose by 3% to 1.516 million tons. The alumina realized price decreased by 1% year-on-year to $397 per ton, down 32% from the previous quarter [1][20] - Electrolytic aluminum production reached 512,000 tons, a 1% increase year-on-year and a 2% increase quarter-on-quarter. The realized price for electrolytic aluminum was $2,548 per ton, up 7% year-on-year [2][22] - The company generated a free cash flow of 5 billion Norwegian Krone (NOK) in Q2 2025, with an adjusted net profit of 3.577 billion NOK, reflecting a 113% year-on-year increase [7][25] Production and Operational Performance - Bauxite and alumina: - Bauxite production: 2.734 million tons, year-on-year stable, quarter-on-quarter up 11% [1][20] - Alumina production: 1.516 million tons, year-on-year up 2%, quarter-on-quarter up 3% [1][20] - Alumina total sales: 2.718 million tons, year-on-year stable, quarter-on-quarter up 6% [1][20] - Electrolytic aluminum: - Production: 512,000 tons, year-on-year up 1%, quarter-on-quarter up 2% [2][22] - Total sales: 550,000 tons, year-on-year down 6%, quarter-on-quarter up 2% [2][22] - Power generation: - Total generation: 2,136 GWh, year-on-year up 11%, quarter-on-quarter down 22% [4][21] Financial Performance - Revenue for Q2 2025 was 53.116 billion NOK, a 4% increase year-on-year, but down 7% from the previous quarter [7][25] - EBITDA for Q2 2025 was 6.889 billion NOK, a 14% increase year-on-year, but down 36% quarter-on-quarter [7][25] - Adjusted EBITDA for Q2 2025 was 7.790 billion NOK, reflecting a 33% year-on-year increase [7][25] Business Segment Performance - Bauxite and alumina: - Adjusted EBITDA decreased from 1.616 billion NOK in Q2 2024 to 1.521 billion NOK in Q2 2025, primarily due to rising raw material costs [9][25] - Electrolytic aluminum: - Adjusted EBITDA decreased from 2.520 billion NOK in Q2 2024 to 2.423 billion NOK in Q2 2025, impacted by rising alumina costs and lower sales volume [11][22] - Extrusions: - Adjusted EBITDA decreased from 1.377 billion NOK in Q2 2024 to 1.260 billion NOK in Q2 2025, due to lower sales margins [12][23] - Recycled aluminum: - Adjusted EBITDA decreased from 570 million NOK in Q2 2024 to 25 million NOK in Q2 2025, primarily due to lower procurement and trading performance [13][24] - Power business: - Adjusted EBITDA increased from 611 million NOK in Q2 2024 to 1.069 billion NOK in Q2 2025, driven by increased production and price benefits [14][21]