Novelis brings in $4.6 billion in the fourth quarter of 2025
The increase is mainly driven by higher aluminum prices and an increase in total product shipments
Novelis Inc., a company that focuses on aluminum rolling and recycling, shared its results for the fourth quarter of the fiscal year 2025.
Fourth quarter fiscal year 2025 financial highlights
Net sales for the fourth quarter of fiscal year 2025 increased 13 percent versus the prior year period to $4.6 billion, mainly driven by higher average aluminum prices and a 1 percent increase in total rolled product shipments compared to the prior year period to 957 kilotonnes. Higher demand for beverage packaging, aerospace, and specialty products was partially offset by lower automotive shipments.
Net income attributable to common shareholders increased 77 percent versus the prior year to $294 million in the fourth quarter of fiscal year 2025, primarily driven by favourable metal price lag, gains in unrealized derivatives, and a lower income tax provision. Adjusted EBITDA decreased 8 percent versus the prior year to $473 million in the fourth quarter of fiscal year 2025, primarily driven by higher aluminum scrap prices and operating costs, partially offset by higher product pricing.
"Strong shipments in both the fourth quarter and full fiscal year, led by robust demand for beverage packaging, continue to underpin the fundamental strength of our business," said Steve Fisher, president and CEO, Novelis Inc. "While Adjusted EBITDA was slightly down versus the prior year in both periods, I'm proud of our team's adaptability and resilience in navigating headwinds from elevated aluminum scrap prices. We are working on implementing actions and technologies to expand our scrap input types, which we believe can mitigate scrap cost challenges and allow us to continue to provide the high-recycled-content aluminum solutions customers prefer. To drive continuing margin improvements, we are highly focused on optimizing our cost structure and increasing operational efficiency through a number of actions that will streamline our business and ensure we maintain a strong return on invested capital."
Full year fiscal year 2025 results
Net sales increased 6 percent versus the prior year to $17.1 billion in fiscal year 2025. Net cash flow provided by operating activities was $1.0 billion in fiscal year 2025 compared to $1.3 billion in the prior fiscal year, primarily due to lower Adjusted EBITDA and higher metal costs, partially offset by an improvement in metal price lag. Adjusted Free Cash Flow was an outflow of $737 million in fiscal year 2025 compared to a prior year period outflow of $75 million, due primarily to a 24 percent year-over-year increase in capital expenditures and lower cash flow from operating activities. Fiscal year 2025 capital expenditures total $1.7 billion and reflect the planned increase in strategic, sustainability-focused capital investment projects that support increased long-term customer demand.
In January 2025, Novelis issued $750 million in senior unsecured notes due January 2030, with the proceeds primarily used to repay outstanding borrowings under the ABL revolver. In March 2025, the company borrowed $1.25 billion of term loans that mature in March 2032, with the proceeds primarily used to repay previously issued term loans that were due in 2026 and 2028.
The company had a net leverage ratio (Adjusted Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 2.9x at the end of the fourth quarter of fiscal year 2025. Total liquidity stood at $2.8 billion as of March 31, 2025, consisting of $1.0 billion in cash and cash equivalents and $1.7 billion in availability under committed credit facilities.
"Our disciplined approach to cash management, including financing actions during the fourth quarter, enables us to continue to strategically invest for growth," said Dev Ahuja, executive vice president and CFO, Novelis Inc. "Our heightened focus on cost efficiency, while we also complete a number of investments to increase rolling and recycling capacity, ensures we are well-positioned to capitalize on long-term market trends while also maintaining a strong liquidity position. This balanced approach supports both our current operations amidst some macroeconomic uncertainty and future growth initiatives."
