Financial Performance - Hydro's adjusted EBITDA for Q2 2025 was NOK 7,790 million, an increase from NOK 5,839 million in the same quarter last year, driven by higher aluminium and energy prices, and realization of previously eliminated internal profits [1] - Free cash flow generated by Hydro was NOK 5 billion, with a twelve-month adjusted RoaCE of 12 percent [1] - Compared to Q1 2025, adjusted EBITDA decreased from NOK 9,516 million to NOK 7,790 million, primarily due to lower realized alumina prices and negative currency effects [17] Strategic Adjustments - Hydro is reducing its 2025 capital expenditure guidance by NOK 1.5 billion to NOK 13.5 billion to ensure financial flexibility amid global market uncertainty [2][3] - An external hiring freeze for white-collar workers has been implemented pending a review of current and future staffing needs [2][6] - The company is focusing on operational efficiency, cost control, and maintaining optionality in response to shifting market conditions [5] Market Conditions - The global market is increasingly uncertain due to geopolitical tensions and regulatory changes, complicating demand forecasting and capacity planning [3] - Hydro's strategy emphasizes the demand for low-carbon aluminium, with a focus on preserving financial strength and improving capital efficiency [4] Operational Challenges - Hydro's second-largest wind power supplier in Sweden faced financial challenges, leading to the termination of a power purchase agreement with compensation of up to EUR 90 million [7] - In Brazil, grid constraints and regulatory uncertainty have limited solar and wind power deliveries, resulting in impairments of approximately NOK 400 million in the energy portfolio [8] Business Area Performance - Adjusted EBITDA for Bauxite & Alumina decreased to NOK 1,521 million from NOK 1,616 million due to higher raw material costs and lower alumina sales prices [12] - Adjusted EBITDA for Hydro Energy increased to NOK 1,069 million from NOK 611 million, attributed to higher production and gains on price area differences [13] - Adjusted EBITDA for Aluminium Metal decreased to NOK 2,423 million from NOK 2,520 million, impacted by higher alumina costs and lower sales volume [14] - Adjusted EBITDA for Extrusions decreased to NOK 1,260 million from NOK 1,377 million, driven by lower sales margins despite higher sales volumes [16] Financial Position - Net income for Q2 2025 was NOK 2,450 million, which included various adjustments such as a NOK 480 million unrealized derivative loss and NOK 392 million impairment in equity accounted investments [18] - Hydro's net debt increased from NOK 15.1 billion to NOK 15.5 billion during Q2 2025, primarily due to EBITDA contributions and shareholder distributions [19] - Adjusted net debt rose from NOK 21.8 billion to NOK 23.0 billion, influenced by increased net pension liability and financial liabilities [20]