Hydro widens profits in Q2

Norway-based Norsk Hydro ASA increased its net income in this year’s second quarter compared with one year earlier, citing its “capital discipline” for supporting strong results.

The metals and energy producer, which makes recycled-content aluminum in Europe and North America, reports its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose by more than 33 percent in the second quarter of 2025 compared with the same time frame last year.

Hydro says its more profitable results were tied to higher aluminum and energy prices and the realization of previously eliminated internal profits.

The firm says limitations to greater profits were present in the form of negative currency effects and higher raw material costs that primarily were driven by the higher cost of alumina used in primary aluminum production.

Hydro's EBITDA in its recycled-content Extrusions business unit fell by 8.5 percent in this year’s second quarter compared with one year earlier, driven by lower sales margins and partly compensated by higher sales volumes and lower fixed costs.

In North America, Hydro says extrusions demand has decreased by an estimated 1 percent in the second quarter of 2025 compared with the same quarter last year but has increased 5 percent compared with this year’s first quarter. The company cites a similar pattern in Europe.

“Extrusion demand has continued to be very weak in the commercial transport segment, driven by lower trailer builds," Hydro says of North America. "Automotive demand has also been weak. Demand has been positive in the building and construction and industrial segments.”

Regarding the steady stream of tariff proposals and announcements in the United States, Hydro says, “While the impacts from the introduction of tariffs and duties are still uncertain at this stage, order bookings have started to develop better for domestic producers due to lower imports.”

The company has launched a review of the number of white-collar positions in its operations globally to ensure alignment with strategic priorities and operational efficiency.

In its Extrusions business unit, Hydro's target is to reduce its employee headcount by more than 100 full-time equivalent positions by the end of this year.

"I am pleased with the strong results this quarter, [considering] the global market uncertainty is continuing,” Hydro President and CEO Eivind Kallevik says. “Hydro is taking proactive measures to reinforce our long-term resilience and operational efficiency.

"The global market has become increasingly uncertain, shaped by geopolitical tensions and shifting regulation. This heightened uncertainty complicates demand forecasting and capacity planning and, in response, Hydro is reducing the capital expenditure guidance for 2025 by $150 million to $1.33 billion to ensure financial flexibility. Under the current political environment, investments will focus on flexibility, risk mitigation, and responsiveness to changing economic and policy conditions.

“We believe in the aluminum industry and we see demand for low-carbon aluminum continuing to grow. In the current situation, our focus is on preserving financial strength, improving capital efficiency and maintaining room to maneuver. We have so far not seen big changes to our operations from tariffs and potential trade wars. Our main concern is whether the uncertainty will lead to a global economic downturn.”