Novelis has reported a 25 per cent year-on-year increase in net sales to $5.9 billion for the second quarter of fiscal year 2027, driven by higher average aluminium prices.

Despite the top-line growth, total rolled product shipments dipped 2 per cent to 919 kilotonnes. Increased shipments across beverage packaging and aerospace were offset by lower volumes in the automotive and specialty product sectors.

Net income attributable to the common shareholder grew 29 per cent year-on-year to $210 million, supported by insurance recoveries following the 2025 Oswego fires and a 20 per cent rise in Adjusted EBITDA to $508 million. The EBITDA improvement reflected $39 million in Oswego business interruption insurance recoveries along with favourable metal benefits, including higher scrap consumption and lower scrap aluminium prices. Excluding special items, net income also rose 29 per cent to $146 million.

Operating cash flow for the first six months of fiscal year 2027 showed an outflow of $418 million, compared with an inflow of $411 million in the prior year period, primarily due to working capital changes and ongoing impacts from the Oswego incident. Adjusted free cash flow for the first half was an outflow of $1.8 billion, compared to an outflow of $499 million in the previous year, reflecting lower operating cash flow and ongoing capital expenditure at the company’s greenfield rolling and recycling facility in Bay Minette, Alabama.

In September, the Bay Minette plant produced its first coil on its cold mill as it works towards launching commercial shipments in the first quarter of fiscal year 2028. Novelis closed the quarter with a net leverage ratio of 4.7x and total liquidity of $2.0 billion, comprising $1.3 billion in cash and cash equivalents and $761 million available under committed credit facilities.

Steve Fisher, president and chief executive officer of Novelis Inc., said that the company delivered strong quarterly results reflecting disciplined execution, resilient demand, and favourable market conditions. He added that Novelis remains excited about the opportunities ahead as Bay Minette moves closer to commercial production, enhancing its capacity to serve the undersupplied North American market.

Dev Ahuja, executive vice president and chief financial officer, noted that as Bay Minette transitions from construction to start-up, reduced capital expenditure, continued cost discipline, and solid underlying business conditions are expected to drive a return to positive free cash flow and initiate a deleveraging cycle towards the end of the fiscal year.