Norwegian aluminum producer Norsk Hydro is holding its investor day today, during which the company announced a reduction in some of its targets set for 2030.
This includes, among other things, the target for adjusted EBITDA within the Extrusions division, which has been revised down to 8-10 billion Norwegian kroner, in line with the updated capital allocation.
"Despite a challenging market climate, the business continues to see strong potential for profitable earnings growth," the company stated.
Furthermore, the EBITDA target for Recycling has been lowered to 5 billion Norwegian kroner, while the potential range has been narrowed to 5-6 billion kroner from the previous 5-8 billion. The revision is said to reflect current market conditions and their impact on near-term capital allocation.
Targets for capital allocation in 2025 and 2026 have also been reduced to 13.5 billion Norwegian kroner, down from 15 billion. The annual flexibility of 1-2 billion kroner has been removed from both the short- and medium-term forecasts. The medium-term annual forecast for capital expenditures (capex) remains unchanged at 15 billion Norwegian kroner.
Additionally, Hydro states that it expects stable net working capital, with a forecast of 30 billion Norwegian kroner at the end of 2025 and the same level projected for 2026.
Regarding the company's improvement program, Hydro remains on track to deliver 6.5 billion Norwegian kroner by 2030. Of this, 1.2 billion kroner is expected to be achieved in 2025, significantly surpassing the annual target of 600 million Norwegian kroner.
