Hydro’s adjusted EBITDA for the fourth quarter was NOK 7,701 million, up from NOK 3,737 million in the same quarter last year. The results increased from higher alumina and all-in aluminium prices, and positive currency effects. This was partly offset by higher raw material costs, lower Extrusions volumes and recycling margins, higher fixed and other costs, including a tax settlement in Aluminium Metal and a provision for future social projects in Bauxite & Alumina. Hydro generated NOK 1.7 billion in free cash flow during the fourth quarter adjusted RoaCE ended at 8.5 percent.

Hydro's fourth quarter results reflect Hydro's relentless efforts to strengthen robustness and execute on our strategic agenda. Despite headwinds in the downstream market, Hydro is delivering strong results, continuing to push forward on our growth ambitions and decarbonization roadmap. Heading into a year where geopolitical unpredictability is accelerating, continued diligence on our improvement efforts will enable Hydro to push forward on our 2030 strategy and reduce emissions, while continuing to deliver attractive shareholder value,” says Eivind Kallevik, President and CEO of Hydro.

The Board of Directors propose to distribute NOK 4.5 billion in shareholder distribution, which represents 50 percent of the 2024 adjusted net income, as NOK 2.25 per share of cash dividends. The proposed distribution prioritizes shareholder distribution by utilizing over the cycle adjusted net debt flexibility. Going forward, Hydro’s capital structure policy to maintain an adjusted net debt over the cycle of around NOK 25 billion, including shareholder distribution, remains unchanged. The final shareholder distribution for 2024 is subject to approval by the Annual General Meeting (AGM) on May 9, 2025.

Strong upstream revenue drivers resulted in record fourth quarter results in Bauxite & Alumina, with an adjusted EBITDA of NOK 5 billion. The Platts Alumina Index (PAX) hit a record USD 805 per tonne in early December amid bauxite supply concerns from Guinea, before correcting to USD 672 per tonne by quarter end.

While the global primary aluminium consumption was up 2.7 percent compared to the same quarter last year, driven by a 3.2 percent increase in world ex-China, the downstream aluminium market continues to face weak demand and tight recycling margins in Europe and North America. Low electrical vehicle sales, especially in Germany, weigh on automotive extrusion demand, while building and construction, and industrial sectors remain moderate, with potential 2025 support from lower interest rates. Limited market activity continues to restrict aluminium scrap supply, squeezing recycling margins and reducing remelt production in Hydro Extrusions and Metal Markets. In response to continued weak markets, Hydro Extrusions is taking proactive steps to enhance operational effectiveness, investing NOK 350 million in restructuring throughout 2024. This includes reducing total personnel by over 900 full time employees through the closures of several recyclers and extruders across Europe and the U.S., while implementing cost saving measures and efficiency improvements.

“Creating meaningful change requires collaboration across industrial value chains. Partnering with Siemens Mobility to advance a truly circular solution for Europe’s next generation trains is incredibly exciting. Closed loop recycling significantly reduces the environmental impact and emissions associated with producing large industrial products like trains. Together with Siemens Mobility, we will set a new standard for more sustainable transport infrastructure,” says Kallevik.

Hydro’s partnership with Siemens Mobility and a national railway company enables a train to train closed loop recycling solution, integrating post-consumer recycled aluminium into new trains. With 40,000 trains set for decommissioning over the next 15 years in Europe, generating 400,000 tonnes of aluminium scrap, the initiative reduces Siemens’ scope 3 emissions and promotes a circular economy. A pilot phase with 10 to 13 trains will assess material quality for reuse, driving sustainability in rail manufacturing.

On carbon capture, Hydro and Rio Tinto partnered to invest USD 45 million over five years in developing carbon capture technologies for the aluminium electrolysis process. Their collaboration encompasses everything from lab tests to large-scale pilot projects focused on advancing commercial carbon capture solutions, with work conducted at Hydro’s Norwegian and Rio Tinto’s European facilities. Both will also continue independent decarbonization efforts.

Hydro is committed to supporting local communities and maintaining its social license to operate. Launched in Pará, Brazil in 2019, the Hydro Sustainability Fund has invested around NOK 80 million to drive sustainable development, impacting over 100,000 lives through seven programs focused on community and female entrepreneurship. Additionally, in December 2024, agreements were signed to support communities along the pipeline from the Paragominas mine to the Alunorte refinery, funding infrastructure, local production facilities and skills development. Around NOK 300 million was provisioned in the fourth quarter of 2024 for future projects.

Contacts:

Martine Rambøl Hagen
Head of Investor Relations
martine.rambol.hagen@hydro.com
+47 91708918

Halvor Molland
Senior vice president, Group Communication
halvor.molland@hydro.com
+47 92979797

Source: Hydro

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