Norsk Hydro: 2Q26: Small beat and resilient outlook

Research evidence excerpt

Norsk Hydro: 2Q26: Small beat and resilient outlook

Global Research

22 July 2026ab

Norsk Hydro Equities

Norway2Q26: Small beat and resilient outlook

Mining

12-month rating Neutral

Encouraging 2Q results with impacts of cost inflation limited

2Q26 results were a small beat on EBITDA and FCF. In our view, the outlook is an 12m price target NKr95.00

incremental positive due to: (1) higher aluminium premiums in 3Q; (2) against a

backdrop of investor concerns over energy-linked cost pressure, in our view guidance for

Price (22 Jul 2026) NKr87.34

broadly flat costs y/y is supportive; (3) the restart of Slovalco and eventual ramp-up of

Qatalum should drive modest volume growth into 2027. RIC: NHY.OL BBG: NHY NO

Trading data and key metrics

2Q result: EBITDA of NOK8.9bn was a 3% beat vs VA consensus. Divisional 52-wk range NKr119.45-61.56

performance was mixed: Aluminium Metal beat on higher realised prices; B&A also Market cap. NKr172b/US$17.9b

beat on better realised prices; Extrusions beat with disclosure of recycling for the first

Shares o/s 1,965m (ORD)

time improving transparency; Metal Markets missed with positive momentum in

Free float 66%

recycling offset by commercial loss (driven by backwardation in forward curve); Energy

Avg. daily volume ('000) 4,010

missed due to lower production and negative area price differences; other/

eliminations were positive vs consensus due to FX hedges. FCF of NOK4.0bn was Avg. daily value (m) NKr404.2

slightly ahead of consensus with lower capex offsetting flat WC (vs expectation of WC Common s/h equity (12/26E) NKr109b

release due to receipt of CO2 compensation). Net debt increased q/q with annual P/BV (12/26E) 1.6x

dividend payments offsetting positive FCF. Net debt to EBITDA (12/26E) 0.1x

EPS (UBS, diluted) (NOK)

Outlook: UBS Cons.