Elkem

Earnings Release • Jul 11, 2025

Second quarter 2025 - Strong cost positions ensure stable financial results

Second quarter 2025 - Strong cost positions ensure stable financial results

Oslo, 11 July 2025

Elkem's EBITDA for the second quarter 2025 was NOK 803 million, down from NOK

1 035 million in the corresponding quarter last year. Despite weak market

conditions and sales prices facing downward pressure, Elkem delivered stable

financial results due to its strong cost position and solid operational

performance.

Elkem's total operating income for the second quarter 2025 was NOK 7 982

million, which was 6 per cent lower than the second quarter 2024. Earnings

before interest, taxes, depreciation and amortisation (EBITDA) was NOK 803

million, down 22 per cent from the corresponding quarter last year. Earnings per

share (EPS) was NOK -0.49 in the quarter and NOK -0.82 year to date. EPS was

negatively impacted by the results in Silicones. The division has been

classified as discontinued operations and assets held for sale due to the

strategic review initiated to streamline Elkem's business portfolio. Elkem aims

to conclude the review before year-end.

The Silicon Products division was impacted by weak commodity markets, driven by

historically low price levels in China. This resulted in Silicon Products' total

operating income declining 13 per cent and EBITDA declining 54 per cent year-on

-year. Carbon Solutions delivered continued good results despite challenging

markets. The division reported a 27 per cent reduction in EBITDA year-on-year,

but maintained a strong EBITDA margin of 28 per cent. Silicones also faced

challenging market conditions and low commodity prices in China. However, the

division delivered an improved EBITDA both compared to the preceding quarter and

the second quarter last year. Operating income increased 3 per cent and EBITDA

increased as much as 449 per cent year-on-year, mainly due to improved cost

positions.

"Markets are still impacted by geopolitical turmoil and trade tensions, which

are negatively affecting global economic growth and Elkem's end-markets. Elkem

is however, well positioned for growth in sectors linked to global megatrends

such as digitisation, defence and physical infrastructure - from transport

systems to digital infrastructure and clean energy," said Elkem CEO Helge Aasen.

"Going forward, we will focus on maintaining a strong liquidity position and

disciplined capital spending,  preserving our leading cost positions to fully

capitalise on new growth opportunities."

In the second quarter, Elkem and NTE entered into a long-term power purchase

agreement (PPA) for the period 2028 to end of 2037, with delivery in the NO4

price area in Norway. The PPA supports long-term operations at Elkem's plant in

Salten. The agreement will be part of Elkem's total long-term contract

portfolio, hedging Elkem's annual power consumption of 3.5 TWh in Norway.

Renewable power is key to producing silicon and silicon-based products with low

CO\2 \emissions and is a central component of Elkem's climate roadmap to reach

net-zero emissions by 2050.

In July, Norway's Ministry of Climate and Environment concluded in favour of

Elkem's complaint of unequal treatment in the allocation of free emission

allowances under EU ETS from 2021 to 2025. Elkem expects to receive additional

allowances for the period 2021-2025. The ministry's decision supports a level

-playing field between European industry players, and will reduce Elkem's CO\2\

quota costs going forward.

The group's equity as at 30 June 2025 amounted to NOK 23 965 million, which gave

a ratio of equity to total assets of 50 per cent. Net interest-bearing debt was

NOK 11 403 million, which gave a ratio of net interest-bearing debt to EBITDA of

2.8x. Elkem had cash and cash equivalents of NOK 4 139 million as at 30 June

2025, and undrawn credit lines of more than NOK 6 000 million.

Market conditions remain subdued, but Elkem's financial performance is supported

by strong cost and market positions. Silicon Products is experiencing

challenging markets and deteriorating reference prices, but the division's

leading cost positions are alleviating the negative impact. Carbon Solutions

benefits from good cost positions and geographically diverse customer portfolio.

Silicones markets expected to remain stable at low levels. However, current

price levels are not deemed sustainable in the long-term.

For further information, please contact:

Odd-Geir Lyngstad

VP Finance & Investor Relations

Tel: +47 976 72 806

Email: odd-geir.lyngstad@elkem.com

Marianne Stigset

VP Corporate Communications & Public Affairs

Tel: +47 411 88 482

E-mail: marianne.stigset@elkem.com

About Elkem

Elkem is one of the world's leading providers of advanced silicon-based

materials shaping a better and more sustainable future. The company develops

silicones, silicon products and carbon solutions by combining natural raw

materials, renewable energy and human ingenuity. Elkem helps its customers

create and improve essential innovations like electric mobility, digital

communications, health and personal care as well as smarter and more sustainable

cities. With a strong track record since 1904, its global team of more than 7

200 people has a joint commitment to stakeholders: Delivering your potential. In

2024, Elkem achieved an operating income of NOK 33 billion. Elkem has been

awarded top score of A on Forests and Water Security, and B on Climate Change

from CDP. Elkem is listed on the Oslo Stock Exchange (ticker: ELK), where the

company is also included in the ESG Index. www.elkem.com