Hydro shares slump to 13-month low as Q3 earnings miss forecasts

Norwegian aluminum and renewable energy firm Hydro's shares plummeted to their lowest level in roughly 13 months, falling 7.4% on Friday, as adjusted core earnings for the third quarter fell short of estimates due to insufficient cash generation and a decline in power earnings. The stock reached a low point of 66.42 Norwegian crowns, down 5.34 crowns from Thursday's close of 71.76, marking its weakest point since September 26, 2025.

Despite metal prices increasing, adjusted EBITDA rose by 52% to 9.09 billion crowns from 6 billion a year prior, but was still below the 9.53 billion average forecast from 14 analysts. Free cash flow amounted to 1.37 billion crowns, which was lower than the 2.64 billion forecast, as higher metal prices amplified working capital demands and prepayments.

Hydro adjusted its year-end capital spending guidance to approximately 12.5 billion crowns, down from 13.5 billion, and increased net working capital guidance to about 32 billion crowns, up from 30 billion. Adjusted EBITDA for the energy segment decreased to 411 million crowns from 828 million a year earlier, primarily due to a loss on price area differences, while aluminium metal earnings rose to 7.03 billion crowns from 2.73 billion on higher metal prices.

However, this was below the 7.54 billion forecast. Aluminium, bauxite and alumina, and extrusions earnings all improved, but metal markets earnings fell short of expectations. Adjusted operating profit was 6.39 billion crowns, compared to a forecast of 6.90 billion, with adjusted earnings per share standing at 2.28 crowns, slightly below the 2.34 forecast.

Hydro's Slovalco smelter started producing aluminum again in late August, aiming to hit an annual capacity of 75,000 tonnes by February 2027.