Growth Markets
February 11, 2026
Novelis expects to restart Oswego in second quarter
Written by Stephanie Ritenbaugh
Novelis expects to restart its rolling mill in Oswego, N.Y., late in the second quarter after two fires significantly damaged the facility.
The causes of the fires are still under investigation, according to Steve Fisher, president and CEO of the Atlanta-based company. But it’s possible the first fire was caused by the strip going into the finishing mill or by lubricants, he noted.
The first fire occurred on Sept. 16. A smaller fire broke out in October. A third blaze happened on Nov. 20.
“It is important to know these were two separate events that occurred under different conditions,” Fisher said during the company’s earnings call on Wednesday.
“While analysis is ongoing, we believe several factors could have contributed to the September fire, including the composition and characteristics of the coil as well as lubricants in the mill and surrounding area,” Fisher said. The cause of the November fire is still under investigation, he noted.
“Importantly, all other areas of the plant, recycling and casting, cold rolling, automotive finishing, and shipping were unaffected and have remained operational,” he added.
As repairs are underway, Novelis has been rerouting material from its other plants and from third parties.
Novelis estimates the combined total free cash flow impact from the September and November fires to be between $1.3 billion and $1.6 billion before insurance recovery. That amount includes about $150 million to $200 million in adjusted EBITDA, and assuming an estimated shipment impact of about 150-200 kilotonnes.
The company estimates it will be able to recover about 70%-80% of the losses from insurance coverage.
Financial results
The Oswego outage dragged results for the third quarter of fiscal 2026.
Novelis reported a net loss of $160 million, compared to net income of $110 million in the prior year. The company saw a 72 kilotonne drop in shipments due to the Oswego outage, resulting in an estimated negative pre-tax impact of $54 million on adjusted EBITDA and net loss. Net loss was also affected by $327 million in pre-tax losses from the fires.
Net sales for the third quarter rose 3% versus the prior year period to $4.2 billion, mainly driven by higher average aluminum prices, partially offset by an 11% decrease in total rolled product shipments to 809 kilotonnes.
Bay Minette update
Construction is continuing on the greenfield rolling and recycling facility in Bay Minette, Ala. The facility will produce 600 kilotonnes of finished goods upon completion. Of that, 420 kilotonnes is targeted for beverage packaging, with capacity contracted, and 180 kilotonnes for automotive.
Novelis expects to commission the $5-billion facility in the second half of this year.
