Norsk Hydro, a prominent Norwegian aluminum and renewable energy company, has reported a robust operating profit of 5.6 billion kroner for the fourth quarter of 2025. The significant earnings have been attributed to high metal prices, which have bolstered the company's bottom line. Additionally, Hydro has achieved production records and made significant cost reductions, further enhancing its financial position. Despite this strong performance, the company's results are slightly down from 6.0 billion kroner in the previous quarter and 7.7 billion kroner in the same quarter last year, prompting the board to propose a cash dividend of 3 kroner per share.

The company has also announced plans to continue its workforce reduction efforts, with the aim of cutting 850 jobs over the course of 2026. This move follows strategic decisions made in the previous year, where Hydro revealed the ongoing closure of several factories in Europe, including operations in the United Kingdom. The workforce reductions and factory closures indicate a significant restructuring within the company, aimed at adapting to changing market conditions and optimizing operational efficiency.

In the context of Norway’s economy and European industrial landscape, the high metal prices provide a temporary relief to Norsk Hydro, but the job cuts and factory closures raise concerns about the long-term sustainability of the company and its impact on local economies. Analysts will be watching closely to see how these decisions affect Hydro's market position and employee morale, as well as how they align with broader trends in the global aluminum industry.