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]

Financial Performance - Hydro's adjusted EBITDA for Q1 2025 was NOK 9,516 million, a significant increase from NOK 5,411 million in the same quarter last year, driven by higher alumina and aluminium prices, along with positive currency effects [1][17] - The net income for Q1 2025 amounted to NOK 5,861 million, which included a NOK 1,324 million unrealized derivative gain and impairment charges of NOK 282 million [18] - Adjusted EBITDA for Bauxite & Alumina rose from NOK 804 million to NOK 5,135 million, primarily due to higher alumina prices and lower raw material costs [12] - Adjusted EBITDA for Aluminium Metal increased from NOK 1,965 million to NOK 2,546 million, supported by higher all-in metal prices and lower carbon and energy costs [14] Market Dynamics - Global primary aluminium consumption increased by 1.5 percent year-over-year in Q1 2025, with a 1.7 percent rise in demand outside China [4][14] - The automotive sector faced challenges with lower light vehicle production in Europe, impacting aluminium demand, although this was somewhat offset by increased production of electric vehicles [4][16] - The U.S. trade policy has expanded Section 232 tariffs, but Hydro's exposure to aluminium tariffs is limited due to domestic sourcing and pass-through pricing [3][4] Strategic Initiatives - Hydro is revising down its 2025 annual adjusted EBITDA outlook due to uncertain markets, with estimates ranging from NOK 3.5 billion to NOK 4.5 billion [5] - The company is implementing firm measures to optimize its portfolio and cut costs, including restructuring efforts and the closure of certain facilities [5][6] - Hydro is investing NOK 1.65 billion in a new wire rod casthouse at its Karmøy smelter, expected to begin production in 2028, alongside a long-term offtake agreement with NKT valued at approximately EUR 1 billion [10][11] Recycling and Sustainability - Hydro is committed to cutting hot metal costs by USD 20–30 per tonne by 2030 in its recycling segment, with one-third of the targeted reductions expected to be realized in 2025 [8] - A new EUR 180 million recycling plant is under construction in Torija, Spain, which will enhance the company's capacity to recycle post-consumer scrap [8] - Hydro is accelerating the commercialization of low-carbon and recycled aluminium, collaborating with customers to integrate these materials into their products [9]