Hydro lifts North American extrusion sales

North American extrusions

Hydro’s North American extrusion sales increased during the second quarter as the company reported stronger US recycling margins and higher recycled aluminum production, even as broader metal product sales for the Hydro Extruded Solutions division declined.

The company sold 108,000 metric tons of extrusions into North American external markets during the quarter, up 1% from 107,000 metric tons in the previous year period and up 7% from 101,000 metric tons in the first quarter.

The sequential increase mainly offset a weaker start to the year. North American extrusion sales totaled 210,000 metric tons during the first half of 2026, down about 1% from 212,000 metric tons in the same period of 2025.

Hydro described North American downstream demand as flat at relatively low levels during the quarter, although conditions recovered from the first-quarter decline. The company said electrical applications were the region’s strongest area of growth, supported by data center investment.

Hydro expects North America to record faster growth in the third quarter as the market compensates for its weaker start to 2026. The company also said customers in the US and Europe have increasingly sought local suppliers because of uncertainty surrounding overseas shipments.

The quarterly increase in North American extrusion sales volume came as Hydro began transferring production ahead of two planned US facility closures.

Hydro announced June 17 that it will close its City of Industry, Calif., extrusion and fabrication facility and its Delhi, La., extrusion and remelt billet operation in 2027.

Hydro Extruded Solutions

Total Hydro Extruded Solutions sales to external markets reached 262,000 metric tons during the quarter, down 1% from 264,000 metric tons in the prior year period but up 4% from 251,000 metric tons in the first quarter.

First-half sales volume totaled 512,000 metric tons, down about 1% from 519,000 metric tons in the first half of 2025.

North America recorded the largest outright volume increase among Hydro Extruded Solutions divisions.

European extrusion sales volume reached 102,000 metric tons, down 5% from 107,000 metric tons a year earlier. Six-month sales volume totaled 202,000 metric tons, down about 3% from 208,000 in 2025.

The Building Systems division sold 20,000 metric tons, up 5% year over year, and first-half sales were up about 2.5% at 39,000 metric tons.

Quarterly Precision Tubing division sales reached 32,000 metric tons, up 1% from 31,000 metric tons a year earlier. Six-month sales fell roughly 1.5% to 61,000 from the corresponding period in 2025.

By end market

Building and construction remained Hydro Extruded Solutions’ largest end market, accounting for 32% of second-quarter revenue. Revenue from the sector fell 3% from a year earlier.

Industrial applications represented 19% of revenue and fell 7%. The decline carried greater weight than the 21% decrease in HVAC and refrigeration, which accounted for only 2% of extrusion revenue.

Automotive and transportation each represented 18% of revenue. Automotive revenue increased 7%, the largest increase among Hydro’s major extrusion end markets, while transportation revenue rose 1%.

Distribution accounted for 11% of revenue and increased 5%.

Hydro said automotive demand increased in Europe, supported by higher electric vehicle production. Other European downstream segments remained largely flat.

Hydro Metal Markets

Hydro Metal Markets, the trading arm and recycled metal producing division of Norsk Hydro ASA, produced 225,000 metric tons of recycled aluminum during the second quarter, up 8% from 209,000 metric tons a year earlier and up 15% from 196,000 metric tons in the first quarter.

First-half recycling production reached 421,000 metric tons, up about 5% from 401,000 metric tons during the same period of 2025.

Metal Markets’ quarterly sales of metal products excluding ingot trading fell to 608,000 metric tons, down 8% from 659,000 metric tons a year prior and 5% from 640,000 metric tons in the first quarter.

Half-year metal product sales totaled 1.248 million metric tons, down about 2% from 1.271 million metric tons a year earlier.

The division’s adjusted EBITDA rose to 510 million Norwegian kroner (NOK), or roughly $54.1 million, from NOK 25 million ($2.4 million) in the second quarter of 2025 and NOK 216 million ($22.2 million) in the first quarter. Dollar equivalents use Hydro’s realized average USD/NOK exchange rate for each reporting period.

Higher earnings from recycling operations partly offset weaker sourcing and trading results. Hydro said its recycling operations continued to post stronger results in both the US and Europe.

Hydro Aluminium

Hydro’s Aluminium Metal division produced 497,000 metric tons of primary aluminum during the second quarter, down from 512,000 metric tons the prior year and 4% from 517,000 metric tons sequentially.

January-June production totaled 1.014 million metric tons, nearly unchanged from 1.015 million metric tons in the same period of 2025.

Casthouse production reached 519,000 metric tons, down 1% from 522,000 metric tons a year earlier and 1% from 523,000 metric tons in the first quarter. First-half casthouse production totaled 1.041 million metric tons, up slightly from 1.033 million metric tons.

Total quarterly Aluminium Metal sales fell more sharply to 508,000 metric tons during the quarter, down 8% from 550,000 metric tons during 2025 and 10% from 563,000 metric tons in the first quarter.

Despite lower sales volumes, Aluminium Metal revenue rose 44% year over year to NOK 20.609 billion ($2.19 billion) from NOK 14.268 billion ($1.39 billion). Adjusted EBITDA increased more than fourfold to NOK 8.661 billion ($919 million) from NOK 2.214 billion ($215 million) over the same period.

Higher all-in aluminum prices and lower alumina costs drove the increase, while a weaker US dollar against the Norwegian krone partly offset those factors.

Price impacts and forward booking

Hydro realized an average LME aluminum price of $3,268 per metric ton during the second quarter, up about 28% from $2,548 per metric tons in the previous year period. Sequentially, the realized average LME aluminum price rose 12% from $2,929 per metric ton in the first quarter.

The higher realized price helped offset lower sales volume across Aluminium Metal and supported the increase in companywide revenue and earnings.

Hydro expects higher carbon and energy costs in Aluminium Metal during the third quarter, while seasonally lower fixed costs should partly offset those increases.

The company has priced about 62% of its third-quarter primary production at $3,361 per metric ton (~$1.52 per pound), including the effect of its strategic hedging program. It has also booked about 54% of the premiums affected the quarter at $783 per metric ton (35.5¢ per pound).

Qatalum

Additionally, the Qatar joint venture Qatalum produced 45,000 metric tons of primary aluminum during the second quarter, down 44% from 81,000 metric tons a year earlier and 39% from 74,000 metric tons in the first quarter.

Reduced production and limited shipments stemming from the ongoing conflict in the Middle East weighed on the operation’s primary aluminum volumes.

Qatalum’s casthouse sales fell by 85% to 13,000 metric tons from 88,000 metric tons a year earlier and 79% from 64,000 metric tons in the first quarter.

Hydro said Qatalum continued operating at about 60% of capacity. However, restrictions on shipments through the Strait of Hormuz limited its ability to move aluminum out of Qatar.

Financials

Hydro reported quarterly revenue of NOK 56.49 billion ($6 billion), up more than 6% from NOK 53.116 billion ($5.2 billion) in the year earlier period and a little more than 12% from NOK 50.388 billion ($5.18 billion) sequentially.

Net income reached NOK 5.965 billion ($633 million), up from 2.45 billion ($238 million) in the second quarter of 2025.

Adjusted EBITDA for the second quarter totaled NOK 8.9 billion ($947 million), a 15% increase from NOK 7.8 billion ($756 million) year over year.