Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today reported results for the first quarter of fiscal year 2027.

"We are pleased to start the new fiscal year on a positive note, supported by strong execution, favorable market trends and continued demand for sustainable aluminum solutions," said Steve Fisher, president and CEO, Novelis Inc. "Momentum continues to build, buoyed by the successful restart of the Oswego hot mill in early June. At the same time, the initial commissioning of key assets at Bay Minette represents another important step in strengthening our operational capabilities and positioning Novelis for its next phase of growth."

First Quarter Fiscal Year 2027 Financial Highlights

Net sales for the first quarter of fiscal year 2027 increased 23% versus the prior year period to $5.8 billion. The increase was primarily due to higher average aluminum prices, partially offset by a 5% decrease in total rolled product shipments to 916 kilotonnes, driven mainly by an estimated 33 kilotonne negative shipment impact related to the Oswego production disruption from the fires in fiscal year 2026.

Net income attributable to our common shareholder was $164 million in the first quarter of fiscal year 2027, a 71% increase from the prior year period. The increase was due primarily to favorable metal price lag resulting from higher metal prices, partially offset by $265 million in pre-tax net losses related to the Oswego fires. In addition, Adjusted EBITDA increased 24% year-over-year to $516 million in the first quarter of fiscal year 2027, driven primarily by lower aluminum scrap prices and cost efficiencies, which were partially offset by higher net tariffs. The estimated impact from the Oswego fires in Adjusted EBITDA is an $18 million benefit, as the favorable timing of insurance proceeds more than offset the estimated negative impact of production interruptions in the quarter. Net income attributable to our common shareholder, excluding special items, increased 128% year-over-year to $265 million.

Net cash used in operating activities was an outflow of $455 million in the first quarter of fiscal year 2027, compared to a net cash inflow of $105 million in the prior year period, largely related to higher working capital from rising aluminum prices and impacts from the Oswego fires, net of insurance recoveries. Adjusted free cash flow was an outflow of $1.1 billion in the current year period, compared to the prior year period outflow of $295 million. The reduction in adjusted free cash flow is mainly driven by lower operating cash flow, as well as higher capital expenditures related to the Company's U.S. greenfield rolling and recycling plant in Bay Minette, Alabama, which has begun the commissioning process.

The Company had a net leverage ratio (Adjusted Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 4.5x at the end of the first quarter of fiscal year 2027. Total liquidity stood at $2.1 billion as of June 30, 2026, consisting of $1.1 billion in cash and cash equivalents and $1.0 billion in availability under committed credit facilities.

"With Oswego back online and Bay Minette's commissioning process getting underway, we are confident in our expectation to return to positive free cash flow in the fourth quarter of this fiscal year," said Dev Ahuja, executive vice president and CFO, Novelis Inc. "Supported by ongoing cost discipline, expected insurance recoveries, and the continued strength of the underlying business, we anticipate beginning to deleverage as capital spending normalizes following the Bay Minette startup."

Update on Recovery at Oswego Plant

In September 2025, a fire broke out at the Novelis plant in Oswego, New York. In November 2025, a second significant fire occurred at the Oswego plant in a location where repair work from the September fire was taking place. Everyone working at the plant was safely evacuated and there were no injuries to employees, contractors or first responders during either event. Both fire events were contained to the hot mill area and did not impact the rest of the plant.

The Oswego hot mill restarted operations in early June, and production activities are ramping up to support pent-up demand and normalize shipments.

First Quarter and Full Fiscal Year 2027 Earnings Conference Call

Novelis will discuss its first quarter and full fiscal year 2027 results via a live webcast and conference call for investors at 7:00 a.m. EST/4:30 p.m. IST on Wednesday, August 5, 2026. The webcast link, presentation materials and access information can also be found at novelis.com/investors. To view slides and listen to the live webcast, visit: https://event.choruscall.com/mediaframe/webcast.html?webcastid=S1VxXbZR. To participate by telephone, participants are requested to register at: http://services.incommconferencing.com/DiamondPassRegistration/register?confirmationNumber=13761757&linkSecurityString=1f2c5acadd.