Novelis quarterly, full-year net sales down; CEO reports ‘strong improvements’

Atlanta-based global aluminum product producer and recycler Novelis Inc. has reported its fourth-quarter and fiscal year 2024 results. Although net sales and full-year net income are down year over year, the company says it delivered “strong improvements” in key financial metrics, highlighting recycling and improved market demand.

In the fourth quarter of 2024, which ended March 31, Novelis’ net sales were down 7 percent from $4.4 billion in 2023 to $4.1 billion in 2024, while full-year net sales were down 12 percent from $18.5 billion in 2023 to $16.2 billion in 2024.

The company’s full-year net income declined 9 percent to $600 million, however, fourth-quarter net income was up 6 percent to $166 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were up 38 percent in the three-month period.

“Novelis delivered strong improvements in key financial metrics in the fourth quarter driven by lower operating costs, improved market demand and higher benefit from recycling,” company President and CEO Steve Fisher says in a news release. “In doing so, we once again demonstrated the strength and resiliency of our business model, which is aided by our global presence and diverse product portfolio.

“We are building on our existing strengths with a number of expansion investments underway to capture sustainability-driven demand for lightweight and infinitely recyclable aluminum material while enhancing profitability and shareholder returns.”

Also in the fourth quarter, Novelis saw increased shipments in North and South America, while other regions experienced slight declines.

The company’s North American shipments were up 8 percent in the fourth quarter of 2024, while adjusted EBITDA in the segment was up 60 percent, and South American shipments were up 14 percent in the quarter.

However, shipments in Europe were down 1 percent along with a 19 percent decrease in adjusted EBITDA, and shipments in Asia were down 2 percent.

Novelis says its strategic capital projects are on track, with $4.9 billion in investments underway to capture growing demand for sustainable aluminum products.

The company also provided updates on several recycling-related projects.

Its $4.1 billion aluminum rolling and recycling facility in Bay Minette, Alabama, is progressing, with steel installation currently underway and beverage packaging capacity fully contracted. Meanwhile, in Guthrie, Kentucky, Novelis is gearing up for a first-quarter 2025 commissioning of its $365 million automotive recycling center.

“We have a strong track record of successfully deploying capital to grow the business as well as a balanced capital allocation profile,” Novelis Executive Vice President and Chief Financial Officer Devinder Ahuja says. “We are generating robust operating cash flow to fund our organic investments currently underway and remain focused on executing our growth strategy and delivering long-term value creation.”

Novelis’ full fourth-quarter and fiscal year 2024 presentation and financial results can be found here.