Solid cash generation, uncertain extrusion markets
Executing on strategic workforce and cost reductions
Future proofing Alouette by signing an Agreement in Principle for long-term power contract until 2045
Dutch court dismisses all claims against Hydro filed by Brazilian Cainquiama and nine individuals in 2021
Advancing low-carbon and circular solutions through customer collaborations
"Challenging markets are affecting our third quarter and we experience weaker results. Despite lower adjusted EBITDA, I am pleased to report solid cash generation while we continue to create results in our efficiency and improvement initiatives in order to improve robustness," says Eivind Kallevik, President and CEO of Hydro.
In June, Hydro launched a strategic workforce and cost reduction program to future proof the organization and strengthen long-term competitiveness. The initiative includes reducing approximately 750 white collar positions to streamline the organizational structure and enhance profitability. About 600 positions will be reduced in 2025, with estimated gross redundancy costs of around NOK 400 million and expected cost savings of NOK 250 million, resulting in a net 2025 cost of NOK 150 million. Further 150 position reductions are planned for in 2026, mainly through natural attrition. From 2026, the program is expected to deliver annual net run-rate savings of NOK 1 billion, including lower travel and consultancy expenses.
These measures comes in addition to several performance and capital discipline initiatives, thereby complementing the 2030 NOK 6.5 billion improvement program and reduced 2025 capex estimate, further strengthening Hydro's ability to navigate global uncertainty. The process is being carried out in line with Hydro's values of care, courage, and collaboration, and in close cooperation with employee representatives.
"Hydro is committed to building resilience, and in an increasingly unpredictable market situation, this program is a significant step. The savings following this program will be an important contribution to our future performance. While such initiatives are challenging, I am encouraged by the thorough and considerate approach taken to ensure that we keep critical resources while adopting to the new reality," says Kallevik.
Reliable access to renewable energy remains key to Hydro's low-carbon aluminium strategy. In the third quarter, Hydro's joint venture smelter, Alouette, made progress in its global power sourcing initiatives, reaching an Agreement in Principle (AiP) with the Government of Québec and Hydro-Québec to secure renewable power supply for the period 2030 - 2045. The agreement ensures stable, competitive energy in a tightening market and reinforces Alouette's position as the largest aluminium smelter in the Americas. The parties will now work toward a final agreement, further strengthening Hydro's global portfolio of long-term renewable power purchase agreements and overall energy resilience.
Hydro is progressing its batteries phase out, as previously communicated on Capital Markets Day in November 2024, in line with its strategic priorities. On October 10, Hydro exchanged its shares in Lithium de France for a 6 percent share in Arverne Group. In addition, Hydro has signed an agreement to divest its entire stake in the maritime battery company Corvus Energy for USD 30 million, with closing expected in early November.
On September 24, 2025, the Rotterdam court issued its final judgment in the case brought forward by Brazilian Cainquiama and nine individuals against Norsk Hydro ASA and its Dutch subsidiaries in 2021. The court fully dismissing all claims brought forward by the plaintiffs, including claims of pollution caused by Alunorte following heavy rains in the region in February 2018. The ...
