Norsk Hydro ASA: Initiation of Coverage- Can Sustainability Investments Deliver Premium Profits in a Low-Carbon World

Norsk Hydro ASA, a leading global aluminum producer, recently presented its financial results for the first quarter of 2025. The company’s performance reflects a mixture of operational achievements and challenges posed by fluctuating market dynamics and external pressures. In terms of financial performance, Norsk Hydro reported an adjusted EBITDA of NOK 9.5 billion for the first quarter, supported by favorable conditions such as higher alumina and aluminum prices and advantageous currency movements. However, this was counterbalanced by increased raw material costs and reduced extrusion volumes and margins, highlighting some operational headwinds. Additionally, the company managed a free cash flow of NOK 1.3 billion, aligning with its strategic goal of a 10% adjusted Return on average Capital Employed (RoaCE) over the cycle.