#Norway #Oslo #EBITDA #Silicones Division #Elkem

Elkem's Third Quarter 2025 Results

In the third quarter of 2025, Elkem reported an EBITDA of NOK 829 million, showing a decline from NOK 1,241 million compared to the same period last year. This decrease is largely attributed to low sales prices and demand fluctuations; however, strong operational performance and cost improvements have played a crucial role in stabilizing the results amid challenging market conditions.

The company’s total operating income for the quarter reached NOK 7,523 million, reflecting a 7% decrease year-over-year. The earnings per share (EPS) were reported at NOK 0.05, with the year-to-date figure standing at NOK -0.77. Notably, these results were affected by the performance of the Silicones division, which has been classified as discontinued operations as the company evaluates its business strategy.

Elkem's Silicon Products division faced high-pressure conditions due to declining prices for silicon and ferrosilicon, with total operating income reported at NOK 3,369 million, an 8% reduction from the previous year. The EBITDA for this division saw an alarming decline of 53% year-on-year. In contrast, the specialty segments within the division managed to report improved results, showing some resilience against the broader market challenges.

On the other hand, the Carbon Solutions division reported an EBITDA of NOK 231 million, which is a 14% decrease from the same quarter last year, leading to a margin of 28%. The decrease in performance was primarily due to lower sales prices coupled with an increase in raw material costs. Interestingly, the Silicones division reported improved outcomes due to enhanced operational efficiencies and better market positions, seeing an increase in EBITDA by 23% despite an overall reduction in operating income by 6%.

In a strategic move to bolster growth in the Silicon Products and Carbon Solutions divisions, Elkem is actively pursuing an exclusive sales process for its Silicones division, anticipating closure in the first half of 2026. Helge Aasen, CEO of Elkem, expressed confidence in the ongoing strategic review and stated that it is proceeding as planned, positioning the company for future growth.

Furthermore, the geopolitical landscape poses certain uncertainties, especially with the EU contemplating safeguard measures aimed at raising prices and protecting internal productions. These measures, expected to take effect from November 19, 2025, may have a varied impact on the market conditions for Elkem, particularly concerning ferrosilicon and foundry alloys, with unclear implications for silicon itself.

In addition to these challenges, the US has enacted countervailing duties on silicon imports from several countries, including Norway, which could affect Elkem’s operations. Although the preliminary rate is noted at 16.87%, the company asserts that such duties do not fall under countervailable subsidies that might harm the domestic industry.

As of September 30, 2025, Elkem reported an equity value of NOK 23,968 million, achieving a solid equity ratio of 50%. The cash position was robust, with NOK 3,968 million in cash and equivalents, along with undrawn credit lines approximating NOK 6,000 million. Nonetheless, the challenges in both the Silicon Products and Carbon Solutions divisions persist, as low demand continues to pressure the financial results.

Looking forward, Elkem is aware of the potential impacts from trade regulations and protective measures. The extent of these influences remains to be seen, especially as the company navigates the complexities of the current economic landscape. Despite these challenges, the leadership remains optimistic about maintaining strong client relationships and a resilient supply chain, which collectively empower Elkem to respond effectively to the fluctuating market trends.

For further information, stakeholders can reach out to Odd-Geir Lyngstad, VP Finance at Investor Relations, or Marianne Stigset, VP Corporate Communications for any inquiries relating to Elkem’s operational or financial outcomes.

About Elkem

Elkem stands as a frontrunner in providing advanced silicon-based materials that are crucial for a sustainable future. Since its inception in 1904, the company has been committed to excellence, merging natural resources with innovative energy solutions and human creativity. Today, with over 7,200 team members globally, Elkem focuses on making significant contributions to industries ranging from electric mobility to personal care, forming a core part of innovative solutions for modern living.