Novelis Inc. Posts $210 Million Net Income in Q2 FY27, Up 29% Year-Over-Year with $508 Million Adjusted EBITDA

Net sales for Q2 FY27 increased 25% year-over-year to $5.9 billion, primarily due to higher average aluminum prices. Although total rolled product shipments decreased by 2%, increases in beverage packaging and aerospace shipments partially offset declines in automotive and specialty product shipments.

Net income excluding special items also grew 29% to $146 million. The adjusted EBITDA improvement included $39 million from Oswego business interruption insurance recoveries and favorable metal benefits from higher scrap consumption and lower scrap aluminum prices.

Cash flow from operations was negative $418 million during the first six months of FY27, compared to positive $411 million in the prior year period, largely due to working capital changes and ongoing impacts from the Oswego fires. Adjusted free cash flow was an outflow of $1.8 billion, reflecting capital expenditures at the Bay Minette plant in Alabama.

The Bay Minette cold mill produced its first coil in September 2026 and aims to start commercial shipments in the first quarter of FY28, enhancing Novelis's capacity to serve the North American aluminum market.

At the end of Q2 FY27, Novelis had a net leverage ratio of 4.7x and total liquidity of $2.0 billion, including $1.3 billion in cash and cash equivalents and $761 million in available credit facilities.