Hydro has achieved a 2.7% year-on-year production increase in aluminium.
The first quarter demonstrated continued strong operational performance in the upstream segments.
Alumina production at Alunorte, Brazil, improved compared to the same quarter last year due to improved yield and stable equipment availability.
In Aluminium Metal the continued ramp up of the previously curtailed capacity at the Norwegian smelters more than offset the production curtailments in the Middle East, driving a 2.7% year-on-year production increase.
The recycling operations delivered strong results in the first quarter, primarily driven by the North American operations.
Increasing value add product premiums compared to aluminium scrap and standard ingot premiums result in very strong margins for the US recyclers.
Eivind Kallevik, President and CEO of Hydro, said: “Strong operational performance across our upstream and recycling businesses, combined with favourable metal prices, drove a strong first quarter.
“It underlines the strength of our portfolio and our ability to convert operational excellence into financial results.”
Securing long-term access to renewable power at competitive pricing is a key priority for Hydro to strengthen long-term competitiveness as well as supporting its low-carbon position.
Three new contracts amounting to 14 TWh have been secured year to date.
In addition to securing long-term contracts, Hydro is actively developing new renewable power projects as well as upgrading assets in its own captive renewable energy portfolio.
Hydro has successfully commissioned the HalZero test facility, marking an important milestone on the development of a new aluminium production technology.
The facility is now operational, with structured testing activities, including key safety systems, operational control systems, equipment designs and core production processes being ramped up.
Results
Adjusted EBITDA for Bauxite & Alumina decreased compared to the first quarter of last year, to NOK 747 million from NOK 5,135 million (approximately USD 555 million), primarily due to lower alumina prices and adverse currency effects, partially offset by higher sales volumes and reduced costs due to improved bauxite quality.
Alumina production at new refineries in Indonesia and India continued ramping up.
Smelter curtailment in the Middle East reduced demand, increasing alumina oversupply in the World ex-China.
China's alumina market was essentially balanced in the quarter with prices hovering close to the marginal cash cost of production.
Monthly Chinese bauxite imports from Guinea trended up in the first quarter 2026.
The government of Guinea is considering restricting bauxite exports to balance the seaborne bauxite market causing prices to increase.
Adjusted EBITDA for Aluminium Metal increased in the first quarter of 2026 compared to the first quarter of 2025, to NOK 5,034 million from NOK 2,546 million (approximately USD 275 million), mainly due to higher all-in metal prices and lower alumina cost, partly offset by weaker USD to NOK.
Global primary aluminium consumption was slightly higher compared to the first quarter of 2025, driven by a 1.2% increase in World ex. China.
Primary consumption in China is estimated to be flat compared to the first quarter of 2025.
The Middle East crisis has had a substantial impact on the aluminium market and prices during the quarter.
The GCC-countries produce above 6mt of primary aluminium on an annual basis and following announced curtailments around half is curtailed.
Consequently, the three-month aluminium price increased throughout the first quarter of 2026, starting the quarter at USD 2,995 per mt and ending at USD 3,467 per mt.
