Earnings Release • Oct 23, 2025
Earnings Release
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Third quarter 2025 - Results supported by strong operational performance and cost improvements
Oslo, 23 October 2025
Elkem reported an EBITDA of NOK 829 million for the third quarter 2025, compared
to NOK 1 241 million in the corresponding quarter last year. While sales prices
remained low, results were supported by strong operational performance and cost
improvements. The strategic review of the Silicones division is proceeding as
planned. The exclusive sales process is expected to close in the first half of
Elkem's total operating income for the third quarter 2025 was NOK 7 523 million,
which was 7 per cent lower than the third quarter 2024. Earnings before
interest, taxes, depreciation and amortisation (EBITDA) was NOK 829 million,
down 33 per cent from the corresponding quarter last year. Earnings per share
(EPS) was NOK 0.05 in the quarter and NOK -0.77 year to date. EPS was negatively
impacted by the results in Silicones. This division has been classified as
discontinued operations and assets held for sale due to the strategic review
initiated to streamline Elkem's business portfolio.
The Silicon Products division was impacted by low silicon and ferrosilicon
prices in the third quarter, while the speciality segments delivered improved
results. The division reported a total operating income of NOK 3 369 million, a
reduction of 8 per cent compared to the third quarter last year, while the
EBITDA declined 53 per cent year-on-year. Carbon Solutions reported an EBITDA of
NOK 231 million, down 14 per cent from the third quarter last year, resulting in
an EBITDA margin of 28 per cent. The lower EBITDA was mainly due to lower sales
prices and somewhat higher raw material costs. Silicones recorded higher results
due to improved cost and market positions. The division reported an EBITDA of
NOK 248 million, a 23 per cent increase year-on-year, despite a 6 per cent
reduction in operating income.
"Despite challenging market conditions and pricing pressures, Elkem continues to
deliver robust operational performance and cost improvements across our three
divisions. The strategic review is proceeding according to plan and once
successfully completed, Elkem will be well positioned for future growth. While
uncertainties persist due to geopolitical and trade developments, Elkem benefits
from a geographically diverse portfolio, a resilient supply chain and strong
client relations, enabling our company to respond effectively to shifting market
trends," says Helge Aasen, CEO of Elkem.
Elkem has initiated a strategic review to sell the Silicones division to
streamline the company and redirect capital towards accelerating growth in the
Silicon Products and Carbon Solutions divisions. An exclusive sales process is
currently underway with a major industrial player that has a significant
presence in the global chemicals industry. Elkem is confident that the potential
transaction would represent the best possible outcome for the Silicones division
as well as the Company, to the benefit of all stakeholders. Subject to
negotiations, agreement and necessary approvals, the closing of the transaction
is expected to occur in the first half of 2026.
EU is considering safeguard measures that could become effective from 19
November 2025. The safeguard measures will be aimed at raising prices and
protecting internal production within EU. It remains unclear how Norway and
Iceland will be affected. The safeguard regulations appear to focus on
ferrosilicon and foundry alloys, with no clear indication if silicon will be
included. In addition, the US has imposed countervailing duties (CVD) on silicon
imported from several countries, including Norway. The preliminary rate for
Norway is 16.87 per cent, mainly related to free allocation of CO\2\ quotas and
CO\2\ compensation under EU rules. Elkem's position is that EU's policies for
CO\2\ quotas and CO\2 \compensation do not constitute countervailable subsidies
harming the US domestic industry.
The Elkem group's equity as at 30 September 2025 amounted to NOK 23 968 million,
which gave a ratio of equity to total assets of 50 per cent. Net interest
-bearing debt was NOK 11 666 million, which gave a ratio of net interest-bearing
debt to EBITDA of 3.1x. Elkem had cash and cash equivalents of
NOK 3 968 million as at 30 September 2025, and undrawn credit lines of around
NOK 6 000 million.
The Silicon Products division is facing challenging conditions, with low silicon
and ferrosilicon demand. However, the division's leading cost positions and good
performance in specialty segments, are mitigating the negative impact. The
Carbon Solutions division benefits from good cost positions and a geographically
diverse customer portfolio, but continued weak demand is impacting the
division's results. The silicones producers are actively trying to increase
prices, but markets are still hampered by overcapacity. Potential trade
regulations and protective measures are expected to impact Elkem's markets going
forward. The safeguard measures in EU are not yet concluded, and the overall
impact for Elkem is unclear.
For further information, please contact:
Odd-Geir Lyngstad
VP Finance & Investor Relations
Tel: +47 976 72 806
Email: [email protected]
Marianne Stigset
VP Corporate Communications & Public Affairs
Tel: +47 411 88 482
E-mail: [email protected]
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
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