Ford supplier Novelis targets June repair for fire-hit Oswego aluminum plant as quarterly loss widens

Detroit, February 11, 2026, 07:45 EST

• Novelis says repairs at its Oswego, New York, facility, hit by fire, should wrap by end-June. Production will climb back gradually after that.
• Aluminum roller swung to a $160 million loss for fiscal Q3, hit by an 11% drop in shipments and mounting fire-related charges.
• Ford doesn’t expect the plant to reach full operations until sometime between May and September, a delay that’s set to keep F-150 production costs under pressure.

Repairs at Novelis’s Oswego, New York, aluminum plant—damaged by fire—should wrap up by the end of June, the Wall Street Journal said Wednesday. That timeline could help relieve a key supply snag for Ford Motor and other carmakers.

The aluminum roller posted a net loss of $160 million in its fiscal 2026 third quarter, as a pair of fires at Oswego knocked production offline and led to related damage charges.

The timing’s crucial here: Oswego’s hot mill turns out the sheet aluminum that goes into vehicle bodies, so when it goes down, supply gets squeezed fast. Ford relies on that metal for its F-150—still its biggest moneymaker—and it’s been spending to keep production humming as supplies shift around.

That’s hitting Novelis right where it hurts, with the impact now visible in both earnings and cash flow. The timing isn’t ideal—the company’s in the middle of pouring money into new capacity. If the restart drags, shipments could stay limited well into mid-year, forcing Novelis to stick with costly workarounds longer than planned.

Novelis reported net sales up 3% to $4.2 billion for the quarter ended Dec. 31. Rolled product shipments, though, declined 11% to 809 kilotonnes (thousand metric tonnes). Adjusted EBITDA dropped 5% to $348 million. The company blamed the Oswego disruption for a 72 kilotonne hit to shipments and a $54 million reduction in pre-tax adjusted EBITDA. 1

Novelis reported that fires on Sept. 16 and again on Nov. 20 were confined to the hot mill, leaving the rest of the plant untouched; no injuries were reported. CEO Steve Fisher said the company is “aggressively leveraging” both its global operations and external suppliers, and aims to bring the Oswego hot mill back online “late in the second quarter of calendar 2026.” 2

According to The Wall Street Journal, Novelis pegged repairs at a minimum of $255 million in an early estimate filed late last year, aiming to lock in a county tax exemption for the project. Fisher told the Journal, “restoration work at Oswego continues to move forward steadily.” The Journal added that operations are expected to ramp gradually over a period of months before hitting normal volumes. 3

Ford told investors Tuesday that its aluminum plant near Oswego won’t hit full capacity until somewhere between May and September, a delay that’s putting more pressure on the bottom line than the company had anticipated. The automaker is aiming for EBIT between $8 billion and $10 billion in 2026, but said it faces about $2 billion in costs from President Donald Trump’s tariffs this year—Reuters reports most of that comes down to aluminum sourcing. 4

So Ford faces a long ramp-up ahead, with timing looking critical. If delays drag out, the F-150 supply chain stays strained and costs keep mounting. The company is still working to protect truck margins as rivals pack the U.S. pickup market.

In December, Novelis secured a $750 million equity injection from its main shareholder to help manage the turmoil. At the end of the quarter, the company’s net leverage ratio stood at 3.7x, while total liquidity reached $2.6 billion as of Dec. 31—of that, $825 million came in cash.

“End of June” is the key date, but delays could stretch that timeline or slow the restart, depending on how quickly equipment is restored. Fire investigations are still incomplete. Novelis, along with automakers, faces tariff fluctuation and higher costs for alternative supply as long as the hot mill stays under capacity.

Novelis continues to put money into fresh projects—one notable bet: its rolling and recycling facility in Bay Minette, Alabama. The company still sees strength in beverage packaging demand. But the Oswego restart? That’s what’s driving the outlook, from shipment volumes to cash flow, not to mention the auto producers who need that sheet.