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REC Silicon Interim / Quarterly Report 2026
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RECSILICON
First quarter 2026
Report
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Advancing Materials, Advancing Technology
REC Silicon is a global leader in silane-based, high-purity silicon materials.
With two U.S.-based manufacturing facilities and sales support offices in both Asia and the United States, REC Silicon is leading energy and technology providers worldwide in shaping the future with advanced silicon materials.
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ISO 9001:2015
CONTENTS
First quarter highlights 4
REC Silicon Group 5
Segment information 8
Risks and uncertainties 10
Market development 11
Outlook 12
Forward looking statements 12
Consolidated financial statements 13
Consolidated statement of financial position 14
Consolidated statement of income 15
Consolidated statement of comprehensive income 16
Consolidated statement of changes in equity 17
Consolidated statement of cash flows 19
Notes 20
Note 01 General 20
Note 02 Segment information 22
Note 03 Fixed assets 24
Note 04 Leases 25
Note 05 Inventories 26
Note 06 Borrowings and guarantees 27
Note 07 Commitments 28
Note 08 Provisions 28
Note 09 Claims, disputes, and risks 29
Note 10 Receivables 29
Note 11 Transactions with related parties 30
Note 12 Discontinued operations 30
Note 13 Events after the reporting period 32
Definition of alternative performance measures 33
CONTENTS
First quarter highlights
> Revenues of USD 19.5 million
> EBITDA loss from continuing operations of USD 3.8 million
> March 31, 2026, cash balance of USD 5.2 million
- Cash decrease of USD 2.1 million during the first quarter
> Secured a USD 10.0 million short-term loan from Anchor AS
> Extended USD 220.0 million of debt facilities during the quarter, including:
- USD 110.0 million short-term loan with Hanwha International LLC
- USD 110.0 million term loan with KEB Hana Bank
Revenues
19.5
USDm
EBITDA
-3.8
USDm
| USD in million | Q1 2026 | Q1 2025 | Year 2025 | Q4 2025 |
|---|---|---|---|---|
| Revenues | 19.5 | 21.4 | 78.2 | 20.1 |
| EBITDA | -3.8 | -4.9 | -8.5 | -3.1 |
| EBITDA margin | -19.6% | -22.8% | -10.9% | -15.2% |
| EBIT excluding impairment charges | -6.1 | -7.3 | -18.4 | -5.5 |
| Impairment charges | -1.0 | 0.0 | -7.6 | -4.5 |
| EBIT | -7.1 | -7.3 | -26.0 | -10.0 |
| EBIT margin | -36.4% | -34.1% | -33.2% | -49.5% |
| Profit/loss before tax from continuing operations | -15.6 | -15.1 | -60.3 | -19.0 |
| Profit/loss from continuing operations | -15.6 | -15.1 | -60.3 | -19.0 |
| Profit/loss from discontinued operations, net of tax | 0.6 | -9.8 | -2.8 | 1.7 |
| Profit/loss from total operations | -15.0 | -24.9 | -63.1 | -17.3 |
| Earnings per share, basic and diluted (USD) from continuing operations | -0.04 | -0.04 | -0.14 | -0.05 |
| Earnings per share, basic and diluted (USD) from discontinued operations | 0.00 | -0.02 | -0.01 | 0.00 |
| Earnings per share, basic and diluted (USD) from total operations | -0.04 | -0.06 | -0.15 | -0.04 |
| Silicon gas loaded (production) in MT | 477 | 546 | 2,202 | 555 |
| Silicon gas sales in MT | 515 | 560 | 2,194 | 540 |
REC Silicon First quarter 2026
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CONTENTS
REC Silicon Group
REC Silicon is a global leader in silane-based, high-purity silicon materials. With two U.S.-based manufacturing facilities and sales support offices in both Asia and the United States, REC Silicon supplies leading energy and technology providers worldwide, helping to shape the future with advanced silicon materials.
The core product for REC Silicon's activities is silane gas. Silane gas is used as a stand-alone product for use in semiconductors, flat panel displays, solar panels and as material for silicon anode batteries.
Profit & Loss
Revenues from continuing operations for the first quarter of 2026 were USD 19.5 million, compared to USD 20.1 million in the fourth quarter of 2025. The decrease was primarily driven by lower sales volumes of silicon gases.
EBITDA from continuing operations for the first quarter of 2026 was a loss of USD 3.8 million, compared to a loss of USD 3.1 million in the fourth quarter of 2025. During the first quarter, a gain of USD 1.2 million was recorded in other income and expenses, primarily related to the refund of previously paid utility taxes for the Moses Lake facility.
The Group reported a total loss of USD 15.0 million for the first quarter of 2026. Total loss for the first quarter of 2026 improved compared to a loss of USD 17.3 million in the fourth quarter of 2025.
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CONTENTS
Financial Position
Shareholders' equity decreased to negative USD 455.6 million as of March 31, 2026, compared to negative USD 440.5 million as of December 31, 2025. This decrease was the result of a loss from total operations of USD 15.0 million.
Net debt is the carrying value of interest-bearing debt instruments (including financing leases) less cash and cash equivalents. As of March 31, 2026, net debt was USD 496.3 million, which consisted of USD 453.4 million in total carrying value of the Group's debt (from note 6) plus USD 48.1 million in current and non-current lease liabilities, less USD 5.2 million in cash and cash equivalents.
Nominal net debt is the contractual repayment values of interest-bearing debt instruments (including financing leases), less cash and cash equivalents. As of March 31, 2026, nominal net debt was USD 496.3 million.
See note 17 to the consolidated financial statements for 2025 and note 6 to this report for further information on interest bearing liabilities.
Cash Flow
During the first quarter of 2026, cash and cash equivalents decreased by USD 2.1 million, resulting in a cash balance of USD 5.2 million as of March 31, 2026.
Operating activities
Net cash used in operating activities for the first quarter of 2026 amounted to USD 10.3 million. Cash outflows were primarily driven by the Group's operating loss and interest payments.
Non-cash items included depreciation and amortization of USD 2.3 million and an impairment expense of USD 1.0 million. Changes in working capital reflected an increase in trade receivables and customer prepayments of USD 1.9 million, partially offset by a decrease in inventories of USD 1.0 million. Trade payables and accrued expenses decreased by USD 3.4 million, while property taxes payable increased by USD 5.4 million. Provisions increased by USD 0.4 million. Other operating cash flow adjustments totaled USD 0.1 million and were related to movements in other assets and liabilities.
During the first quarter, cash outflows also included lease interest payments of USD 1.3 million, and interest paid on debt of USD 7.9 million.
Investing activities
Net cash used in investing activities during the first quarter of 2026 amounted to USD 0.2 million and related to capital expenditures.
Financing activities
Net cash provided by financing activities during the first quarter of 2026 amounted to USD 8.4 million. Cash inflows were primarily attributable to proceeds from new loans of USD 10.0 million, partially offset by payments of lease liabilities of USD 1.6 million (see Note 4).
Capital Expenditures
Capital expenditures in the first quarter of the year totaled USD 0.2 million. Capital spending was primarily associated with process improvements in Butte.
REC Silicon First quarter 2026
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CONTENTS
Financial Items
| USD in million | Q1 2026 | Q1 2025 | Year 2025 | Q4 2025 |
|---|---|---|---|---|
| Financial income | 0.4 | 0.2 | 0.4 | 0.1 |
| Interest expenses on borrowings | -6.3 | -5.7 | -25.1 | -6.6 |
| Interest expense on leases | -1.3 | -1.3 | -5.3 | -1.3 |
| Capitalized borrowing cost | 0.0 | 0.2 | 0.6 | 0.0 |
| Expensing of up-front fees and costs | -0.8 | -0.8 | -3.2 | -0.8 |
| Other financial expenses | -0.4 | -0.4 | -1.7 | -0.4 |
| Net financial expenses | -8.8 | -8.0 | -34.6 | -9.1 |
| Net currency gains/losses | 0.0 | 0.0 | 0.0 | 0.0 |
| Net financial items | -8.5 | -7.8 | -34.3 | -9.1 |
During the first quarter of 2026, the Group recognized USD 6.3 million in interest expense on borrowings, including USD 6.3 million associated with term loans, and USD 0.0 million associated with a note with Grant County, Washington. In addition, the Group incurred USD 0.8 million in up-front fees and costs related to the guarantees charged by Hanwha associated with the term loans.
Interest expense related to lease liabilities amounted to USD 1.3 million during the quarter (see Note 4).
Other financial expenses include calculated interest on asset retirement and pension obligations.
Income Tax
The loss from total operations of USD 15.0 million during the first quarter of 2026 had no effective tax impact due to REC Silicon's unrecognized deferred tax asset. These losses will continue to be available to offset taxable income in future periods, subject to certain limitations.
See note 18 to the consolidated financial statements for 2025 for additional information on income taxes.
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CONTENTS
Segment information
Summary of results by segment
| USD in million | Q1 2026 | Q1 2025 | Year 2025 | Q4 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| Revenues | EBITDA | Revenues | EBITDA | Revenues | EBITDA | Revenues | EBITDA | |
| Butte | 19.5 | 2.2 | 21.4 | 1.2 | 78.1 | 2.7 | 20.1 | 1.6 |
| Moses Lake | 0.0 | -2.4 | 0.0 | -1.1 | 0.0 | 4.1 | 0.0 | -1.7 |
| Other | 0.0 | -3.6 | 0.0 | -4.9 | 0.1 | -15.3 | 0.0 | -3.0 |
| Total | 19.5 | -3.8 | 21.4 | -4.9 | 78.2 | -8.5 | 20.1 | -3.1 |
Butte
| USD in million | Q1 2026 | Q1 2025 | Year 2025 | Q4 2025 |
|---|---|---|---|---|
| Revenues | 19.5 | 21.4 | 78.1 | 20.1 |
| EBITDA contribution | 2.2 | 1.2 | 2.7 | 1.6 |
| Contribution margin | 11.1% | 5.7% | 3.4% | 8.1% |
| Silicon gas loaded (production) in MT | 477 | 546 | 2,202 | 555 |
| Silicon gas sales in MT | 515 | 560 | 2,194 | 540 |
REC Silicon manufactures silicon gases from its facility in Butte, Montana, which is the world's largest supplier of silicon gases for semiconductor, flat panel display, and solar applications. The strategic priority is to fully utilize the 7,400MT silane gas capacity at Butte with silane and specialty gases for these industries. The Butte facility also supplies monosilane for the silicon anode battery industry.
Despite the shutdown of polysilicon production capacity at the Butte facility in mid-2024, a limited amount of polysilicon continues to be produced for the purpose of analyzing silicon gas quality. Polysilicon produced for this purpose will continue to be sold.
Butte segment revenues were USD 19.5 million in the first quarter of 2026 compared to USD 20.1 million in the fourth quarter of 2025. The decrease in revenue is due to decreased silicon gas sales and polysilicon volumes compared to the fourth quarter of 2025.
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Silicon gas sales volumes decreased by 25MT to 515MT during the first quarter of 2026 compared to the fourth quarter of 2025. Sales prices for silicon gas decreased by 0.3 percent from the previous quarter.
Total polysilicon sales volumes, including by-products, were 39MT in the first quarter of 2026, compared to 150MT during the fourth quarter of 2025. Semiconductor grade polysilicon sales were 13MT in the first quarter of 2026, compared to 9MT in the fourth quarter of 2025. Sales volumes of other grade polysilicon decreased by 114MT to 26MT in the first quarter. The polysilicon sold was primarily sourced from previously produced inventory and future sales volumes are expected to decrease as inventory is depleted.
The Butte segment contributed USD 2.2 million to the Group's EBITDA in the first quarter of 2026, compared to USD 1.6 million during the fourth quarter of 2025.
Moses Lake
| USD in million | Q1 2026 | Q1 2025 | Year 2025 | Q4 2025 |
|---|---|---|---|---|
| Revenues | 0.0 | 0.0 | 0.0 | 0.0 |
| Other income and expenses | 1.1 | 0.0 | 15.1 | 1.5 |
| Net costs | -3.5 | -1.1 | -11.0 | -3.2 |
| EBITDA contribution | -2.4 | -1.1 | 4.1 | -1.7 |
On December 30, 2024, the Group announced the decision to permanently cease production of granular polysilicon at its manufacturing facility located in Moses Lake, Washington. As a result, the granular polysilicon business line met the criteria for classification as a discontinued operation.
The Group incurred USD 3.5 million in costs during the first quarter of 2026 compared to USD 3.2 million during the fourth quarter of 2025 related to the safe maintenance of its silane gas plants in a non-operating condition. These activities are not directly attributable to the discontinued granular polysilicon operations and are therefore classified within continuing operations. In addition, the Group recorded other income and expenses in the amount of USD 1.1 million during the first quarter of 2026 primarily as a result of a refund from the State of Washington for previously paid utility tax. Total EBITDA for the first quarter of 2026 was a loss of USD 2.4 million.
The Moses Lake facility has an annual capacity of 24,000MT of silane gas for own use, however, additional investment would be necessary to deliver to external customers. In the meantime, the silane plants will be maintained in safe and recoverable condition.
Other and Eliminations
| USD in million | Q1 2026 | Q1 2025 | Year 2025 | Q4 2025 |
|---|---|---|---|---|
| Revenues | 0.0 | 0.0 | 0.1 | 0.0 |
| EBITDA contribution | -3.6 | -4.9 | -15.3 | -3.0 |
The Other segment includes general administrative and sales activities in support of the manufacturing facilities in the United States and the Group's headquarters in Norway. It also includes costs associated with the Group's representative offices in Asia.
Net operating costs in Other and Eliminations were USD 3.6 million in the first quarter of 2026, compared to net operating costs of USD 3.0 million in the fourth quarter of 2025.
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CONTENTS
Risks and uncertainties
Please refer to the annual report for 2025, specifically to the risk factors section of the Board of Directors' Report.
Liquidity risk
During the first quarter of 2026, the Group undertook several measures to address its short-term liquidity needs. On January 19, 2026, REC Silicon ASA entered into an unsecured USD 10.0 million short-term loan agreement with Anchor AS, the Group's largest shareholder. In addition, on January 26, 2026, REC Silicon Inc extended its existing USD 110.0 million loan agreement with Hanwha International LLC, which now matures on January 24, 2027. On March 30, 2026, REC Silicon ASA extended its USD 110.0 million term loan with KEB Hana Bank through a refinancing on substantially similar terms with a maturity date of March 30, 2027.
Subsequent to quarter-end, the Group further strengthened its liquidity position through the completion of a fully underwritten rights issue in April 2026, generating gross proceeds of approximately USD 103 million. The proceeds are intended to be used for repayment of advance payments under a long-term offtake contract, repayment of existing debt facilities, and general corporate purposes and working capital. In addition, in April 2026, the Group extended an unsecured USD 7.0 million short-term loan with Anchor AS by six months.
As of March 31, 2026, total debt, including guarantee fees, amounted to USD 453.4 million. Of this amount, USD 233.4 million is scheduled to mature during 2026, while USD 220.0 million of debt extended during the first quarter of 2026 is scheduled to mature in the first quarter of 2027.
Despite the actions described above, the Group does not currently have sufficient available cash and committed financing to meet its debt service and other anticipated operating cash flow requirements over the next twelve months. The Group is actively pursuing additional financing initiatives, including the refinancing or extension of remaining debt facilities and the sale of non-core assets.
Management expects that operating cash flow, primarily from the Butte facility, together with completed and planned financing actions, will support liquidity requirements during 2026. However, the Group is not expected to generate sufficient cash flow from operations to meet its obligations as they fall due without the successful execution of these additional financing initiatives. Accordingly, these conditions indicate material uncertainty that may cast significant doubt regarding the Group's ability to continue as a going concern without securing additional financing or continued support from its largest shareholder, Hanwha.
Macroeconomic and industry risks
Global economic conditions, including inflation, interest rate volatility, currency fluctuations, and geopolitical developments, may affect demand for advanced silicon products, pricing levels, and access to capital. Trade restrictions, tariffs, and other protectionist measures have affected, and may continue to affect, the Group's ability to compete in certain markets, influence cost structures, and impact sales volumes. Prolonged adverse market conditions could reduce operating cash flow and limit financial flexibility.
The Group does not have operations or material exposure in Iran or other areas directly affected by recent geopolitical tensions in the Middle East. However, escalating conflicts in the region could impact global energy markets, supply chains, financial markets, or broader economic conditions. The Group continues to monitor developments and assess potential impacts on its operations and financial performance.
REC Silicon First quarter 2026
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CONTENTS
Market development
Overall, demand for silane and related gases was broadly stable in the first quarter of 2026. Market conditions continued to be characterized by structural oversupply, sustained pricing pressure, and delays in customer capacity ramp-ups across several end markets. While semiconductor-related demand was relatively resilient, continued softness in photovoltaic (PV), flat panel display (FPD), and silicon anode battery markets weighed on overall demand and limited volume recovery during the period.
Semiconductor
Demand for silane and advanced silicon gases was stable during the first quarter, supported by ongoing production in advanced logic and selected memory applications. Wafer input volumes continued to benefit from Al-related demand; however, customer ordering patterns remained cautious, with limited incremental volume growth. While construction of new fabrication facilities in several regions progressed, production ramp-ups continued to occur more gradually than originally anticipated.
Capital investment activity remained concentrated in South Korea, Taiwan, Japan, and North America. In China, equipment spending remained more moderate following significant capacity additions in prior periods. Increased domestic silane production capacity in China continued to constrain export opportunities and contributed to ongoing pricing pressure in international markets.
Flat panel display (FPD)
Silane demand for display applications was weak during the first quarter as panel manufacturers continued to adjust production levels in response to persistent oversupply and subdued end-market demand. Utilization rates remained below historical levels, and pricing continued to be pressured by aggressive low-cost supply from China. Market conditions showed limited signs of near-term improvement.
Photovoltaic (PV)
PV market conditions were challenging during the first quarter, characterized by global oversupply and sustained margin pressure across the value chain. Cell and module manufacturers, particularly in Southeast Asia and China, continued to operate at reduced utilization rates. While new manufacturing capacity in the United States and India continued to advance, the associated uplift in silane demand remained limited during the period, reflecting the timing of capacity ramp-ups.
Project installations were subdued across several regions as customers continued to defer procurement decisions amid weak module pricing, inventory adjustments, and policy-related uncertainty. Pricing competition remained intense across several Asian markets, driven by ongoing oversupply and continued capacity additions.
Silicon anode battery
The silicon anode battery market continued to progress. Pilot-scale production activities continued in South Korea and the United States; however, the transition to commercial-scale production remained delayed. Demand visibility remained limited, reflecting slower-than-expected adoption of electric vehicles and evolving regulatory and incentive frameworks. As a result, near-term volume growth remained constrained.
While electric vehicles remain the primary driver of silicon anode adoption, the technology is also being evaluated for use in adjacent applications such as data centers and mobile devices. Adoption in these segments remains at an early stage, largely limited to pilot programs and customer qualification activities.
REC Silicon First quarter 2026
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CONTENTS
Outlook
Market conditions are expected to remain challenging throughout the first half of 2026, with continued pricing pressure driven by structural oversupply, particularly in photovoltaic and display-related markets. Customer ordering patterns are expected to remain cautious in the near term, reflecting ongoing inventory adjustments and delays in capacity ramp-ups across several end markets.
Demand for semiconductor-related applications is expected to be relatively stable, supported by continued investment in advanced logic and Al-related infrastructure. As new fabrication facilities gradually increase utilization, semiconductor demand is expected to provide a more stable foundation for overall silane consumption during 2026.
In the photovoltaic market, near-term conditions are expected to remain weak, with project installations continuing to be influenced by low module pricing, inventory levels, and policy-related uncertainty. While demand from U.S. projects may improve as previously delayed installations progress, pricing competition in Asian markets is expected to stay intense amid ongoing oversupply and continued capacity expansion.
Looking ahead, the Group expects a gradual improvement in market conditions during the second half of 2026, supported by increasing utilization at new semiconductor and solar manufacturing facilities. However, the timing and pace of recovery remain uncertain and are dependent on the resolution of current supply-demand imbalances and the execution of customer capacity ramp-ups.
The silicon anode battery market is still at an early stage of commercialization. While pilot-scale production activities are ongoing, the transition to commercial-scale production is progressing more gradually than initially anticipated, resulting in limited near-term demand contribution. Over time, the technology may provide incremental growth opportunities as adoption expands across electric vehicles and adjacent applications.
Forward looking statements
This report contains statements regarding the future in connection with the Group's growth initiatives, profit figures, outlook, strategies, and objectives. In particular, the section "Outlook" contains forward-looking statements regarding the Group's expectations. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual results and developments deviating substantially from what has been expressed or implied in such statements. These factors include the risk factors relating to the Group's activities described in the section "Risks and Uncertainties" above and in REC Silicon's Annual Report for 2025, including the section Risk Factors in the Board of Directors' Report.
Consolidated financial statements
Rev 04040
Consolidated statement of financial position
| USD in million | Notes | Mar 31, 2026 | Mar 31, 2025 | Dec 31, 2025 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Land and buildings | 3 | 28.7 | 30.6 | 29.2 |
| Machinery and production equipment | 3 | 39.8 | 30.1 | 40.8 |
| Other tangible assets | 3 | 1.8 | 2.1 | 1.9 |
| Assets under construction | 3 | 5.7 | 22.8 | 5.7 |
| Property, plant and equipment | 3 | 76.1 | 85.6 | 77.5 |
| Right of use assets | 4 | 21.1 | 23.3 | 21.6 |
| Other non-current receivables | 0.5 | 0.1 | 0.4 | |
| Total non-current assets | 97.6 | 109.0 | 99.5 | |
| Current assets | ||||
| Inventories | 5 | 18.6 | 26.1 | 19.6 |
| Trade and other receivables | 10 | 9.9 | 6.7 | 8.5 |
| Prepaid costs | 8.1 | 10.0 | 6.3 | |
| Restricted bank accounts | 0.5 | 0.6 | 0.5 | |
| Cash and cash equivalents | 5.2 | 16.8 | 7.3 | |
| Total current assets | 42.5 | 60.2 | 42.3 | |
| Total assets | 140.2 | 169.2 | 141.8 | |
| USD in million | Notes | Mar 31, 2026 | Mar 31, 2025 | Dec 31, 2025 |
| --- | --- | --- | --- | --- |
| EQUITY AND LIABILITIES | ||||
| Shareholders' equity | ||||
| Paid-in capital | 3,027.7 | 3,027.7 | 3,027.7 | |
| Other equity and retained earnings | -3,483.2 | -3,430.7 | -3,468.2 | |
| Total shareholders' equity | -455.6 | -403.0 | -440.5 | |
| Non-current liabilities | ||||
| Retirement benefit obligations | 2.6 | 3.1 | 2.6 | |
| Non-current provision, interest calculation | 8 | 26.8 | 26.7 | 26.4 |
| Non-current financial liabilities, interest bearing | 6 | 0.0 | 251.6 | 0.0 |
| Non-current lease liabilities | 4 | 41.4 | 54.6 | 42.1 |
| Non-current prepayments | 3.4 | 33.4 | 3.4 | |
| Other non-current liabilities, not interest bearing | 0.0 | 0.0 | 0.0 | |
| Total non-current liabilities | 74.1 | 369.3 | 74.5 | |
| Current liabilities | ||||
| Trade payables and other liabilities | 31.2 | 48.7 | 28.2 | |
| Current provisions | 0.3 | 2.7 | 0.3 | |
| Current financial liabilities, interest bearing | 6 | 453.4 | 141.6 | 442.6 |
| Current lease liabilities | 4 | 6.7 | 9.4 | 6.3 |
| Current prepayments | 30.0 | 0.6 | 30.4 | |
| Total current liabilities | 521.7 | 202.9 | 507.9 | |
| Total liabilities | 595.7 | 572.2 | 582.4 | |
| Total equity and liabilities | 140.2 | 169.2 | 141.8 |
Consolidated statement of income
| USD in million | Notes | Q1 2026 | Q1 2025 | Year 2025 |
|---|---|---|---|---|
| Revenues | 19.5 | 21.4 | 78.2 | |
| Cost of materials | -2.5 | -3.3 | -12.0 | |
| Changes in inventories | 5 | -1.1 | -1.5 | -4.2 |
| Employee benefit expenses | -9.5 | -9.9 | -38.0 | |
| Other operating expenses | -11.4 | -11.5 | -47.8 | |
| Other income and expense¹ | 1.2 | 0.0 | 15.2 | |
| EBITDA | -3.8 | -4.9 | -8.5 | |
| Depreciation | 3 | -1.6 | -1.8 | -7.3 |
| Depreciation of right of use assets | 4 | -0.7 | -0.6 | -2.6 |
| Impairment | 3, 4 | -1.0 | 0.0 | -7.6 |
| Total depreciation, amortization and impairment | -3.3 | -2.4 | -17.5 | |
| EBIT | -7.1 | -7.3 | -26.0 | |
| Financial income | 0.4 | 0.2 | 0.4 | |
| Net financial expenses | -8.8 | -8.0 | -34.6 | |
| Net currency gains/losses | 0.0 | 0.0 | 0.0 | |
| Net financial items² | -8.5 | -7.8 | -34.3 | |
| Profit/loss from continuing operations | -15.6 | -15.1 | -60.3 | |
| Profit/loss from discontinued operations | 0.6 | -9.8 | -2.8 | |
| Profit/loss from total operations | -15.0 | -24.9 | -63.1 | |
| USD in million | Notes | Q1 2026 | Q1 2025 | Year 2025 |
| --- | --- | --- | --- | --- |
| Attributable to: | ||||
| Owners of REC Silicon ASA | -15.0 | -24.9 | -63.1 | |
| Earnings per share (In USD) | ||||
| From continuing operations | ||||
| -basic | -0.04 | -0.03 | -0.14 | |
| -diluted | -0.04 | -0.03 | -0.14 | |
| Earnings per share (In USD) | ||||
| From total operations | ||||
| -basic | -0.04 | -0.06 | -0.15 | |
| -diluted | -0.04 | -0.06 | -0.15 |
¹ Other income and expenses for the first quarter of 2026 is primarily due to a refund of previously paid utility tax related to Moses Lake.
² See financial items table in part 1 of this report.
Comparative information has been reclassified between continuing and discontinued operations; see Note 1.
Consolidated statement of comprehensive income
| USD in million | Q1 2026 | Q1 2025 | Year 2025 |
|---|---|---|---|
| Profit/loss from total operations | -15.0 | -24.9 | -63.1 |
| Other comprehensive income, net of tax: | |||
| Items that will not be reclassified to profit or loss: | |||
| Remeasurement of defined benefit plans | 0.0 | 0.0 | 0.6 |
| Currency translation effects | 0.0 | 0.0 | 0.0 |
| Total other comprehensive income | 0.0 | 0.0 | 0.6 |
| Total comprehensive income | -15.0 | -25.0 | -62.5 |
| Total comprehensive income attributable to: | |||
| Owners of REC Silicon ASA | -15.0 | -25.0 | -62.5 |
Consolidated statement of changes in equity
| USD in million | Attributable to equity holders of REC Silicon ASA | ||||||
|---|---|---|---|---|---|---|---|
| Share capital | Share premium | Other paid-in capital | Total paid-in capital | Other equity | Comprehensive income | Total equity | |
| March 31, 2025 | |||||||
| On January 1, 2025 | 59.2 | 2,926.7 | 41.8 | 3,027.7 | 539.0 | -3,944.8 | -378.1 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -25.0 | -25.0 |
| On March 31, 2025 | 59.2 | 2,926.7 | 41.8 | 3,027.7 | 539.0 | -3,969.7 | -403.0 |
| Year 2025 | |||||||
| On January 1, 2025 | 59.2 | 2,926.7 | 41.8 | 3,027.7 | 539.0 | -3,944.8 | -378.1 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -62.5 | -62.5 |
| On December 31, 2025 | 59.2 | 2,926.7 | 41.8 | 3,027.7 | 539.0 | -4,007.3 | -440.5 |
| March 31, 2026 | |||||||
| On January 1, 2026 | 59.2 | 2,926.7 | 41.8 | 3,027.7 | 539.0 | -4,007.3 | -440.5 |
| Total comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 | 0.00 | -15.0 | -15.0 |
| On March 31, 2026 | 59.2 | 2,926.7 | 41.8 | 3,027.7 | 539.0 | -4,022.3 | -455.6 |
This table presents details of comprehensive income
| USD in million | Translation differences that can be transferred to profit and loss | Acquisition | Retained earnings | Total |
|---|---|---|---|---|
| March 31, 2025 | ||||
| Accumulated at January 1, 2025 | 13.4 | 20.9 | -3,979.0 | -3,988.8 |
| Profit/loss | 0.0 | 0.0 | -24.9 | -24.9 |
| Other comprehensive income: | ||||
| Items that will not be reclassified to profit or loss: | ||||
| Remeasurement of defined benefit plans | 0.0 | 0.0 | 0.0 | 0.0 |
| Currency translation effects | 0.0 | 0.0 | 0.0 | 0.0 |
| Sum items that will not be reclassified to profit or loss | 0.0 | 0.0 | 0.0 | 0.0 |
| Total other comprehensive income for the period | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income for the period | 0.0 | 0.0 | -25.0 | -25.0 |
| Accumulated on March 31, 2025 | 13.4 | 20.9 | -4,004.0 | -3,969.7 |
| Year 2025 | ||||
| Accumulated at January 1, 2025 | 13.4 | 20.9 | -3,979.0 | -3,944.8 |
| Profit/loss from total operations | 0.0 | 0.0 | -63.1 | -63.1 |
| Other comprehensive income: | ||||
| Items that will not be reclassified to profit or loss: | ||||
| Remeasurement of defined benefit plans | 0.0 | 0.0 | 0.6 | 0.6 |
| Sum items that will not be reclassified to profit or loss | 0.0 | 0.0 | 0.6 | 0.6 |
| Total other comprehensive income for the period | 0.0 | 0.0 | 0.6 | 0.6 |
| Total comprehensive income for the period | 0.0 | 0.0 | -62.5 | -62.5 |
| Accumulated at December 31, 2025 | 13.4 | 20.9 | -4,041.5 | -4,007.3 |
| March 31, 2026 | ||||
| Accumulated at January 1, 2026 | 13.4 | 20.9 | -4,041.5 | -4,007.3 |
| Profit/loss | 0.0 | 0.0 | -15.0 | -15.0 |
| Other comprehensive income: | ||||
| Items that will not be reclassified to profit or loss: | ||||
| Currency translation effects | 0.0 | 0.0 | 0.0 | 0.0 |
| Sum items that will not be reclassified to profit or loss | 0.0 | 0.0 | 0.0 | 0.0 |
| Total other comprehensive income for the period | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income for the period | 0.0 | 0.0 | -15.0 | -15.0 |
| Accumulated at March 31, 2026 | 13.4 | 20.9 | -4,056.5 | -4,022.3 |
Consolidated statement of cash flows
| USD in million | Notes | Q1 2026 | Q1 2025 | Year 2025 |
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Profit/loss before tax^{1} | -15.0 | -24.9 | -63.1 | |
| Depreciation, amortization and impairment | 3, 4 | 3.3 | 3.0 | 18.1 |
| Changes in receivables, prepayments from customers etc. | 10 | -1.9 | 9.5 | 7.7 |
| Changes in inventories | 5 | 1.0 | 1.3 | 7.8 |
| Changes in payables, accrued and prepaid expenses | -3.4 | -12.0 | -21.2 | |
| Changes in provisions | 8 | 0.4 | -5.6 | -5.4 |
| Changes in VAT and other public taxes and duties | 5.4 | 4.0 | -1.9 | |
| Currency effects not cash flow or not related to operating activities | 0.0 | 0.0 | 0.0 | |
| Other items | -0.1 | 0.0 | -18.6 | |
| Net cash flow from operating activities | -10.3 | -24.7 | -76.4 | |
| Cash flows from investing activities | ||||
| Proceeds/Payments finance receivables and restricted cash | 0.0 | 0.2 | 0.3 | |
| Proceeds from sale of property, plant and equipment and intangible assets | 0.0 | 0.0 | 0.6 | |
| Payments for property, plant and equipment and intangible assets | 3 | -0.2 | -6.7 | -9.3 |
| Net cash flow from investing activities | -0.2 | -6.6 | -8.4 | |
| USD in million | Notes | Q1 2026 | Q1 2025 | Year 2025 |
| --- | --- | --- | --- | --- |
| Cash flows from financing activities | ||||
| Payments of lease liabilities | 4 | -1.6 | -2.2 | -6.7 |
| Payments of borrowings | 6 | 0.0 | 0.0 | -1.4 |
| Proceeds from borrowings | 6 | 10.0 | 40.0 | 90.0 |
| Net cash flow from financing activities | 8.4 | 37.8 | 81.9 | |
| Effect on cash and cash equivalents of changes in foreign exchange rates | 0.0 | 0.0 | 0.0 | |
| Net increase/decrease in cash and cash equivalents | -2.1 | 6.5 | -3.0 | |
| Cash and cash equivalents at the beginning of the period | 7.3 | 10.3 | 10.3 | |
| Cash and cash equivalents at the end of the period | 5.2 | 16.8 | 7.3 | |
| 1 Profit/loss before tax consists of | ||||
| Profit/loss before tax from continuing operations | -15.6 | -14.7 | -60.3 | |
| Profit/loss before tax from discontinued operations | 0.6 | -10.2 | -2.8 | |
| Profit/loss before tax from total operations | -15.0 | -24.9 | -63.1 | |
| 1 Profit/loss before tax includes | ||||
| interest paid | -9.2 | -7.5 | -30.8 | |
| interest received | 0.4 | 0.2 | 0.4 |
Notes
Note 01 General
The Group
REC Silicon ASA (the Company) and its subsidiaries (together REC Silicon Group, REC Silicon, or the Group) are a leading producer of advanced silicon materials, focusing on delivering high-purity silicon gases to the solar and electronics industries worldwide.
REC Silicon ASA is headquartered in Lysaker, Norway and operates manufacturing facilities in Moses Lake, Washington and Butte, Montana in the USA. REC Silicon's subsidiaries include REC Silicon Inc, REC Solar Grade Silicon LLC, and REC Advanced Silicon Materials LLC in the US. REC Silicon's marketing activities for sales of products are carried out in Japan, Taiwan, Korea, Singapore, China, and the United States.
Basis of preparation
The financial statements are presented in USD, rounded to the nearest tenth of million, unless otherwise stated. As a result, of rounding adjustments, the figures in one or more rows or columns included in the financial statements and notes may not add up to the total of that row or column.
Financial statements
These consolidated interim financial statements, combined with other relevant financial information in this report, have been prepared in accordance with IAS 34. They have not been audited or subject to a review by the auditor. They do not include all the information required for full annual financial statements of the Group and should be read in conjunction with the consolidated financial statements for 2025. The consolidated financial statements for 2025 are available upon request from the Company's registered office in Lysaker, Norway or at www.recsilicon.com.
Going concern
As of the date of these interim financial statements, the Group's liquidity position has improved following the completion of a rights issue in April 2026, which generated gross proceeds of approximately USD 103 million. The proceeds are intended to be used for the repayment of advance payments related to a long-term offtake contract, repayment of existing debt facilities, and general corporate purposes and working capital.
During the first quarter of 2026, the Group secured additional liquidity through a USD 10.0 million six-month short-term loan with Anchor AS and extended certain existing debt facilities, including a USD 110.0 million short-term loan with Hanwha International LLC and a USD 110.0 million term loan with KEB Hana Bank. These facilities now mature on January 24, 2027, and March 30, 2027, respectively. Subsequent to quarter-end, the Group extended a USD 7.0 million short-term loan with Anchor AS by six months.
Despite these actions, the Group has significant debt maturities in 2026, including USD 10.0 million in May, USD 50.0 million in June, USD 100.0 million in July and USD 40.0 million in September. Including guarantee fees, the Group has approximately USD 453.4 million of debt maturing within the next twelve months. Of this amount, USD 233.4 million is scheduled to mature during 2026, while USD 220.0 million is scheduled to mature in the first quarter of 2027.
The Group does not currently have sufficient available cash and committed financing to meet all debt service and other anticipated operating cash flow requirements over the next twelve months. Based on current forecasts, operating cash flow generated from the Butte facility, together with completed and planned financing actions, is expected to support liquidity requirements during 2026. However, the Group is not expected to generate sufficient operating cash flow to meet its obligations as they fall due over the next twelve months without successfully executing additional financing initiatives, including the refinancing or extension of remaining debt facilities and the sale of non-core assets.
Accordingly, these conditions indicate the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. The Group's ability to continue operations is dependent on the successful execution of its refinancing plans, the realization of proceeds from the sale of non-core assets, and continued support from its largest shareholder, Harwha.
In forming its conclusion, management and the Board have considered cash flow forecasts, available mitigating actions, and financial support historically provided by related parties, including guarantees and shareholder loans. Based on this assessment, the Board considers it appropriate to prepare the financial statements on a going concern basis. This conclusion remains dependent on the successful execution of the financing initiatives described above and the continued support of lenders and shareholders.
The Board will continue to monitor the Group's liquidity position and financing activities closely and will take further actions as necessary to preserve financial stability.
Accounting policies
The consolidated financial statements for 2025 were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the Norwegian Accounting Act. The accounting policies adopted by the Company are consistent with those of the previous fiscal year. See note 2.24 to the consolidated financial statements for 2025.
Segment information
REC Silicon produces silicon gas at its manufacturing facility in Butte, Montana. During 2025 the Group completed the shutdown of granular polysilicon production at its manufacturing facility in Moses Lake, Washington. REC Silicon is maintaining its option to restart the silane plants in Moses Lake.
The Group's organization structure, management team, operating strategy, and performance measurement reporting support the determination that these businesses represent separate distinguishable operating segments. Accordingly, there are two operating segments: Butte, Montana and Moses Lake, Washington. Other includes general, administrative, and selling expenses which support both operating segments in addition to administrative costs for the Company's headquarter in Lysaker, Norway. Eliminations (if applicable) include the reversal of the impact of transactions between group members and affiliates. The results of the operating segments plus Other and Eliminations reconcile to total profit/loss for the Group.
Group Management is headed by the Chief Executive Officer (CEO), and the CEO makes decisions regarding the allocation of resources and performance assessment for all segments. Accordingly, the CEO is regarded as the Chief Operating Decision Maker (CODM).
Foreign currency translation
Items included in the financial statements for each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). REC Silicon AS and REC Solar AS have a functional currency of NOK. The Company and its remaining subsidiaries have a functional currency of USD. The Group's reporting currency is USD. See note 2.4 to the consolidated financial statements for 2025.
Estimates and judgments
Preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 4 to the consolidated financial statements for 2025.
Reclassification of comparative information
In connection with the audit of the Group's consolidated financial statements for the year ended December 31, 2025, the Group identified a minor classification adjustment between continuing and discontinued operations in its previously reported interim financial information. Comparative information has been reclassified to conform to the current period presentation.
For the three months ended March 31, 2025, loss from continuing operations increased from USD 14.7 million to a loss of USD 15.1 million, with a corresponding decrease in loss from discontinued operations from USD 10.2 million to USD 9.8 million. Total loss from operations remained unchanged at USD 24.9 million.
The reclassification also impacted certain subtotal measures. Consolidated EBITDA decreased from a loss of USD 4.6 million to a loss of USD 4.9 million and EBIT decreased from a loss of USD 7.1 million to a loss of USD 7.3 million. For the Moses Lake segment, EBITDA and EBIT decreased from USD (0.9) million to USD (1.1) million.
The reclassification described above was reflected in the Group's audited consolidated financial statements for the year ended December 31, 2025. Accordingly, certain comparative amounts presented differ from amounts previously reported in the Group's 2025 interim financial information for the year ended December 31, 2025, including loss from continuing operations of USD 62.3 million to USD 60.3 million and loss from discontinued operations of USD 0.7 million to USD 2.8 million. Total net loss remained unchanged at USD 63.1 million.
This reclassification had no impact on total net loss, cash flows, or the Group's financial position.
Note 02 Segment information
See notes 2.3 and 5 to the consolidated financial statements for 2025 and note 1 to these financial statements for further information on segments.
The following table summarizes key financial results by segment:
| USD in million | Q1 2026 | Q1 2025 | Year 2025 | Q4 2025 |
|---|---|---|---|---|
| Revenues | ||||
| Butte | 19.5 | 21.4 | 78.1 | 20.1 |
| Moses Lake | 0.0 | 0.0 | 0.0 | 0.0 |
| Other | 0.0 | 0.0 | 0.1 | 0.0 |
| Total | 19.5 | 21.4 | 78.2 | 20.1 |
| EBITDA | ||||
| Butte | 2.2 | 1.2 | 2.7 | 1.6 |
| Moses Lake | -2.4 | -1.1 | 4.1 | -1.7 |
| Other | -3.6 | -4.9 | -15.3 | -3.0 |
| Total | -3.8 | -4.9 | -8.5 | -3.1 |
| EBIT | ||||
| Butte | 0.0 | -1.1 | -11.2 | -5.0 |
| Moses Lake | -3.4 | -1.1 | 0.9 | -1.8 |
| Other | -3.7 | -5.0 | -15.7 | -3.1 |
| Total | -7.1 | -7.3 | -26.0 | -10.0 |
The following tables reflect the financial results of each operating segment:
Butte
Moses Lake – Continuing operations
Note 03 Fixed assets
See note 6 to the consolidated financial statements for 2025.
Property, plant and equipment and intangible assets
| USD in million | Land and buildings | Machinery and production equipment | Other tangible fixed assets | Assets under construction | Total property, plant and equipment | Total intangible assets | Total |
|---|---|---|---|---|---|---|---|
| Carrying value on January 1, 2026 | 29.2 | 40.8 | 1.9 | 5.7 | 77.5 | 0.0 | 77.5 |
| Net additions^{1} | 0.0 | 0.1 | 0.0 | 0.1 | 0.1 | 0.0 | 0.1 |
| Disposals | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Depreciation and amortization | -0.5 | -1.0 | -0.1 | 0.0 | -1.6 | 0.0 | -1.6 |
| Carrying value on March 31, 2026 | 28.7 | 39.8 | 1.8 | 5.7 | 76.1 | 0.0 | 76.1 |
| On March 31, 2026 | |||||||
| Historical cost | 104.5 | 1,687.8 | 63.4 | 42.6 | 1,898.3 | 45.1 | 1,943.4 |
| Accumulated depreciation/amortization/impairment | -75.8 | -1,647.9 | -61.6 | -36.9 | -1,822.2 | -45.1 | -1,867.3 |
| Carrying value on March 31, 2026 | 28.7 | 39.8 | 1.8 | 5.7 | 76.1 | 0.0 | 76.1 |
1 Net additions include transfers from assets under construction. Differences between additions and cash payments for PPE is the result of changes in accruals and timing of payments.
Items classified as under construction relate to assets within the Butte segment and are projects to ensure stable production and ongoing quality improvements.
Impairment reviews
See note 8 to the consolidated financial statements for 2025.
Management has determined that the Group consists of two cash generating units (CGUs). The Group's CGUs are derived from the reported segments for Butte and Moses Lake. Financial attributes associated with Other and Eliminations have been allocated to the individual CGUs based upon estimated activity, volume, and revenue factors.
The Group conducted a review of impairment indicators as of March 31, 2026 and did not identify any indicators which might give rise to a change in impairment compared to December 31, 2025.
Despite this, the Group recognized an impairment charge of USD 1.0 million during the quarter related to lease modifications at the Moses Lake facility, as further described in Note 4.
Note 04 Leases
See note 7 to the consolidated financial statements for 2025.
Right of use assets
| USD in million | Land and buildings | Machinery | Gas plants | Other leased assets | Total |
|---|---|---|---|---|---|
| Balance at January 1, 2026 | 0.0 | 0.0 | 21.5 | 0.0 | 21.6 |
| Depreciation | 0.0 | 0.0 | -0.7 | 0.0 | -0.7 |
| Additions | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Modification of existing leases | 0.0 | 0.0 | 1.2 | 0.0 | 1.2 |
| Impairment | 0.0 | 0.0 | -1.0 | 0.0 | -1.0 |
| Balance at March 31, 2026 | 0.0 | 0.0 | 21.1 | 0.0 | 21.1 |
Lease liabilities
| USD in million | Total future lease payments | Maturity analysis - contractual payments to be made | |||||
|---|---|---|---|---|---|---|---|
| 2026 | 2027 | 2028 | 2029 | 2030 | After 2030 | ||
| Lease liabilities on March 31, 2026¹ | 68.8 | 8.7 | 11.6 | 11.6 | 11.3 | 6.0 | 19.7 |
¹ Amounts listed are undiscounted
Amounts recognized in profit or loss
| USD in million | Q1 2026 | Q1 2025 | Year 2025 |
|---|---|---|---|
| Continuing operations | |||
| Interest on lease liabilities | 1.3 | 1.3 | 5.2 |
| Depreciation of right-of-use assets | 0.7 | 0.6 | 2.6 |
| impairment on right-of-use assets | 1.0 | 0.0 | 3.2 |
| Gains (-) and losses (+) due to terminations and other | 0.0 | 0.0 | -9.5 |
| Expenses relating to short-term leases | 0.1 | 0.2 | 0.8 |
| Discontinued operations | |||
| Interest on lease liabilities | 0.0 | 0.7 | 0.7 |
| Depreciation of right-of-use assets | 0.0 | 0.0 | 0.0 |
| Impairment of right-of-use assets | 0.0 | 0.1 | 0.6 |
| Gains (-) and losses (+) due to terminations and other | 0.0 | 0.0 | -1.1 |
| Expenses relating to short-term leases | 0.0 | 0.1 | 0.1 |
The weighted average incremental borrowing rate applied to lease liabilities on March 31, 2026 is 11.6 percent.
During the first quarter of 2026, lease modifications related to index-linked adjustments resulted in an increase in right-of-use assets at the Moses Lake facility. Due to the facility's non-operating status and negative value in use, the increase was fully impaired, resulting in an impairment charge of USD 1.0 million. In addition, lease modifications of USD 0.2 million were recognized in relation to right-of-use assets at the Butte facility.
Right-of-use assets associated with leases of low-value items or with lease terms of 12 months or less at commencement are not recognized on the balance sheet. Payments related to such leases are expensed in accordance with the short-term lease and low-value asset exemptions.
Amounts recognized in the statement of cash flow
| USD in million | Q1 2026 | Q1 2025 | Year 2025 |
|---|---|---|---|
| Total cash outflow for leases | 2.9 | 4.1 | 12.6 |
Note 05 Inventories
See note 13 to the consolidated financial statements for 2025.
Inventories at end of period
| USD in million | Mar 31, 2026 | Dec 31, 2025 | ||||
|---|---|---|---|---|---|---|
| Before writedowns | Writedowns | After writedowns | Before writedowns | Writedowns | After writedowns | |
| Stock of raw materials | 5.1 | 0.0 | 5.1 | 4.9 | 0.0 | 4.9 |
| Spare parts | 53.0 | -46.5 | 6.5 | 52.7 | -46.5 | 6.2 |
| Work in progress | 3.8 | -0.9 | 2.9 | 3.7 | -1.0 | 2.8 |
| Finished goods | 4.9 | -0.8 | 4.1 | 6.6 | -0.9 | 5.7 |
| Total | 66.7 | -48.2 | 18.6 | 68.0 | -48.4 | 19.6 |
Inventories have been written down to estimated net realizable values. Write-downs of materials and spare parts represent the estimated obsolescence related to items held in inventories at cost. Write-downs of work in progress and finished goods have been estimated by comparing the net realizable value of anticipated sales to the manufacturing costs of items held in inventory.
Note 06 Borrowings and guarantees
See notes 17, 29, and 30 to the consolidated financial statements for 2025.
Carrying amounts of interest-bearing liabilities on March 31, 2026 and contractual repayments (excluding interest payments) are specified in the table below.
| USD in million | Borrower | Maturity | Interest rate | Carrying amount | Contractual repayments, excluding interest | |||
|---|---|---|---|---|---|---|---|---|
| Total | 2026 | 2027 | After 2027 | |||||
| Guranantee fees¹ | 1.9 | 1.9 | 1.9 | |||||
| Bank Loan - KEB Hana Bank | REC Silicon ASA | 2026 | 3 mon SOFR+1.8% | 110.0 | 110.0 | 110.0 | ||
| Bank Loan - KEB Hana Bank | REC Silicon Inc | 2026 | 3 mon SOFR+1.5% | 100.0 | 100.0 | 100.0 | ||
| Bank Loan - NongHyup | REC Silicon Inc | 2026 | 3 mon SOFR+2.0% | 40.0 | 40.0 | 40.0 | ||
| Bank Loan - Standard Chartered | REC Silicon Inc | 2026 | 1 mon SOFR+2.0% | 50.0 | 50.0 | 50.0 | ||
| Grant County WA tax settlement | REC Solar Grade Silicon LLC | 2026 | 11.5% | 1.6 | 1.6 | 1.6 | ||
| Related Party Loan - Anchor AS | REC Silicon ASA | 2026 | 3 mon SOFR+2.2% | 30.0 | 30.0 | 30.0 | ||
| Related Party Loan - Hanwha Global Americas | REC Silicon Inc | 2026 | 3 mon SOFR+2.2% | 10.0 | 10.0 | 10.0 | ||
| Related Party Loan - Hanwha International | REC Silicon Inc | 2026 | 3 mon SOFR+2.2% | 110.0 | 110.0 | 110.0 | ||
| Total | 453.4 | 453.4 | 233.4 | 220.0 | 0.0 |
¹ Amortized as part of effective interest
On January 19, 2026, REC Silicon ASA entered into an unsecured USD 10.0 million short-term loan agreement with Anchor AS to fund the Group's working capital needs. The terms and conditions of this loan are consistent with the Group's existing loan agreements with Anchor AS. The maturity date is July 19, 2026.
On January 26, 2026, REC Silicon Inc extended its existing USD 110.0 million short-term loan agreement with Hanwha International LLC.
On March 30, 2026, REC Silicon extended its USD 110.0 million term loan with KEB Hana Bank through a refinancing with affiliates of KEB Hana Bank on substantially similar terms as the existing loan. As a result of these extensions, USD 220.0 million of borrowings that were previously due in 2026 have been extended to mature in the first quarter of 2027.
Subsequent to quarter-end, on April 13, 2026, REC Silicon ASA extended an unsecured USD 7.0 million short-term loan agreement with Anchor AS.
Guarantees
See note 29 to the consolidated financial statements for 2025.
The Group provided parent company guarantees for the REC Solar Group related to the performance of solar panels and systems and the sale of REC ScanModule AB. The Group has been provided with offsetting guarantees by REC Solar Holdings AS. The guarantees are valid for relevant warranty periods and are limited by warranties provided on solar panels and systems. Parent company guarantees for REC Solar were USD 28.1 million on March 31, 2026, and December 31, 2025. The guarantees will expire in their entirety by 2039.
Note 07 Commitments
Contractual purchase obligations and minimum operating lease payments on March 31, 2026
| USD in million | Total future payments | 2026 | 2027 | 2028 | 2029 | After 2029 |
|---|---|---|---|---|---|---|
| Purchase of goods and services | 11.5 | 9.7 | 1.8 | 0.0 | 0.0 | 0.0 |
| Minimum operating lease payments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total purchase obligations and minimum lease payments | 11.5 | 9.7 | 1.8 | 0.0 | 0.0 | 0.0 |
Commitments primarily represent the purchase of raw materials.
Note 08 Provisions
| USD in million | Mar 31 2026 | Dec 31, 2025 |
|---|---|---|
| Current | 0.3 | 0.3 |
| Non-current | 26.8 | 26.4 |
| Total provision | 27.0 | 26.7 |
Specification of provisions
| USD in million | Q1 2026 | 2025 |
|---|---|---|
| at beginning of period | 26.7 | 34.5 |
| Restructuring costs | 0.0 | -7.9 |
| Change in estimate in asset retirement obligation | 0.0 | -1.5 |
| Net periodic interest on asset retirement obligation - discontinued operations | 0.0 | 0.2 |
| Net periodic interest on asset retirement obligation - continuing operations | 0.4 | 1.3 |
| at end of period | 27.0 | 26.7 |
See note 20 to the consolidated financial statements for 2025.
During the fourth quarter of 2025, the Group implemented a reduction in force and recognized termination benefits. A provision of USD 0.7 million was recognized when the Group committed to the restructuring. Of this amount, USD 0.4 million was paid during the fourth quarter of 2025. The remaining USD 0.3 million is expected to be settled during the first half of 2026. Payments were made during the first quarter of 2026; however, the amount was not material and rounded to USD 0.0 million.
The asset retirement obligations (AROs) represent the present value of estimated future costs discounted between 4.5 to 6.0 percent and between 3 and 34.5 years.
Note 09 Claims, disputes, and risks
Please refer to the annual report for 2025, specifically note 31 to the consolidated financial statements and the risk factors section of the Board of Directors' Report.
Note 10 Receivables
See notes 12 and 30 to the consolidated financial statements for 2025.
Aging of receivables on March 31, 2026
| USD in million | Total Carrying amount | Not due | Aging of receivables that are not impaired past due | ||||
|---|---|---|---|---|---|---|---|
| < 30 Days | >30<90 Days | >90<365 Days | >365 Days | Impaired | |||
| Trade receivables and accrued revenues | 10.1 | 8.9 | 1.0 | 0.1 | 0.0 | 0.0 | 0.0 |
| Provision for loss on trade receivables | -0.7 | 0.0 | -0.5 | -0.1 | 0.0 | 0.0 | 0.0 |
| Other current receivables | 0.4 | 0.4 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total receivables | 9.9 | 9.4 | 0.5 | 0.0 | 0.0 | 0.0 | 0.0 |
There was no bad debt expense recorded during the first quarter of 2026.
Note 11 Transactions with related parties
See notes 10, 16, and 17 to the consolidated financial statements for 2025.
As of the date of these interim financial statements Hanwha companies hold 93.13 percent of the shares in REC Silicon.
| USD in million | Q1 2026 | Q1 2025 | Year 2025 |
|---|---|---|---|
| Total related party revenues | 0.1 | 0.3 | 0.7 |
| Related party expenses | |||
| Service expenses | -0.2 | -0.1 | -0.8 |
| Interest expenses on borrowings | -2.2 | -1.1 | -6.6 |
| Expensing of guarantee and LOC fees | -0.8 | -0.8 | -3.2 |
| Total related party expenses | -3.1 | -2.0 | -10.6 |
In the first quarter of 2026, REC Silicon Inc received services from Hanwha subsidiaries, in the amount of USD 0.2 million.
In the first quarter REC Silicon incurred interest expense related to loans with related parties as follows:
- USD 1.6 million associated with its loan with Hanwha International,
- USD 0.1 million associated with its loan with Hanwha Global Americas, and
- USD 0.4 million associated with its loan with Anchor AS.
See Note 6 for additional information regarding these borrowings.
Hanwha Solutions provides guarantees for certain REC Silicon loans. During the first quarter of 2026, REC Silicon incurred USD 0.8 million in expenses related to guarantee and letter of credit fees payable to Hanwha Solutions.
In September 2023, REC Solar Grade Silicon LLC received an advance payment of USD 30 million from QCells as part of its supply agreement. Due to the cancellation of the agreement, REC Solar Grade Silicon LLC is required to return the full amount of the advance payment. The return payment was scheduled to be made in January of 2026, but the parties reached an agreement in principle to extend the payment date until January of 2027.
Note 12 Discontinued operations
On December 30, 2024, the Group announced the decision to permanently cease production of granular polysilicon at its manufacturing facility located in Moses Lake, Washington. As a result, the granular polysilicon business line met the criteria for classification as a discontinued operation.
During the first quarter of 2026, the Group incurred approximately USD 3.5 million in costs related to the safe maintenance of the Moses Lake silane gas plants in a non-operating condition. These activities are not directly attributable to the discontinued granular polysilicon operations and are therefore classified within continuing operations.
The Moses Lake facility has an annual capacity of approximately 24,000 MT of silane gas for internal use. Additional investment would be required to enable sales to external customers. In the interim, the silane plants are being maintained in a safe and recoverable condition.
The following statement of income is an analysis of discontinued operations.
Analysis of discontinued operations
Consolidated statement of income
| USD in million | Total operations | Of which discontinued | Continuing | Total operations | Of which discontinued | Continuing | Total operations | Of which discontinued | Continuing |
|---|---|---|---|---|---|---|---|---|---|
| Q1 2026 | Q1 2025 | Year 2025 | |||||||
| Revenues | 20.4 | 0.9 | 19.5 | 21.7 | 0.3 | 21.4 | 82.5 | 4.3 | 78.2 |
| Cost of materials | -2.5 | 0.0 | -2.5 | -3.5 | -0.2 | -3.3 | -12.2 | -0.2 | -12.0 |
| Changes in inventories | -1.4 | -0.4 | -1.1 | -1.9 | -0.4 | -1.5 | -7.3 | -3.1 | -4.2 |
| Employee benefit expenses | -9.5 | 0.0 | -9.5 | -13.9 | -4.0 | -9.9 | -41.9 | -4.0 | -38.0 |
| Other operating expenses | -11.4 | 0.0 | -11.4 | -15.7 | -4.2 | -11.5 | -51.9 | -4.2 | -47.8 |
| Other income and expense1 | 1.2 | 0.0 | 1.2 | 0.0 | 0.0 | 0.0 | 20.9 | 5.7 | 15.2 |
| EBITDA | -3.3 | 0.6 | -3.8 | -13.3 | -8.5 | -4.9 | -9.9 | -1.4 | -8.5 |
| Depreciation | -1.6 | 0.0 | -1.6 | -1.8 | 0.0 | -1.8 | -7.3 | 0.0 | -7.3 |
| Amortization | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Depreciation of right of use assets | -0.7 | 0.0 | -0.7 | -0.6 | 0.0 | -0.6 | -2.6 | 0.0 | -2.6 |
| Impairment | -1.0 | 0.0 | -1.0 | -0.6 | -0.6 | 0.0 | -8.2 | -0.6 | -7.6 |
| Total depreciation, amortization and impairment | -3.3 | 0.0 | -3.3 | -3.0 | -0.6 | -2.4 | -18.1 | -0.6 | -17.5 |
| EBIT | -6.5 | 0.6 | -7.1 | -16.3 | -9.0 | -7.3 | -28.0 | -2.0 | -26.0 |
| Financial income | 0.4 | 0.0 | 0.4 | 0.2 | 0.0 | 0.2 | 0.4 | 0.0 | 0.4 |
| Net financial expenses | -8.8 | 0.0 | -8.8 | -8.8 | -0.8 | -8.0 | -35.4 | -0.8 | -34.6 |
| Net currency gains/losses | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Net financial items2 | -8.5 | 0.0 | -8.5 | -8.6 | -0.8 | -7.8 | -35.1 | -0.8 | -34.3 |
| Profit/loss | -15.0 | 0.6 | -15.6 | -24.9 | -9.8 | -15.1 | -63.1 | -2.8 | -60.3 |
| Profit/loss attributable to owners of REC Silicon ASA | -15.0 | 0.6 | -15.6 | -24.9 | -9.8 | -15.1 | -63.1 | -2.8 | -60.3 |
| Comprehensive income attributable to owners of REC Silicon ASA | -15.0 | 0.6 | -15.6 | -24.9 | -9.8 | -15.1 | -62.5 | -2.8 | -59.7 |
| Earnings per share (In USD) | |||||||||
| -basic | -0.04 | 0.00 | -0.04 | -0.06 | -0.02 | -0.04 | -0.15 | -0.01 | -0.14 |
| -diluted | -0.04 | 0.00 | -0.04 | -0.06 | -0.02 | -0.04 | -0.15 | -0.01 | -0.14 |
Cash flows of discontinued operations
The following table shows the cash flows of the discontinued operations of the Moses Lake segment. It includes cash flows to and from REC Silicon Inc. The US entities of REC Silicon have a cash pooling arrangement and net cash from REC Silicon Inc to the Moses Lake segment is reported in the line Net cash flow from financing activities.
| USD in million | Q1 2026 | Q1 2025 | 2025 |
|---|---|---|---|
| Net cash flow from operating activities | 0.9 | -17.4 | -14.1 |
| Net cash flow from investing activities | 0.0 | -4.1 | -4.1 |
| Net cash flow from financing activities | -0.9 | 21.5 | 18.2 |
| Cash and cash equivalents at the beginning of the period | 0.0 | 0.0 | 0.0 |
| Cash and cash equivalents at the end of the period | 0.0 | 0.0 | 0.0 |
Note 13 Events after the reporting period
Subsequent to March 31, 2026, the Group completed a fully underwritten rights issue, issuing 4,078,000,000 new shares at a subscription price of NOK 0.2385 per share, raising gross proceeds of approximately NOK 972.6 million (approximately USD 103 million).
The share capital increase pertaining to the rights issue was registered with the Norwegian Register of Business Enterprises on April 14, 2026. Following registration, the Group's share capital was NOK 449,862,565.90, divided into 4,498,625,659 shares, each with a par value of NOK 0.10. In connection with the rights issue, Anchor AS, the Group's largest shareholder, was allocated a significant portion of the new shares and, following completion of the rights issue, held 4,181,883,500 shares, representing approximately 92.96 percent of the issued share capital.
In accordance with the underwriting agreement, the Group subsequently issued 113,000,457 commission shares to Anchor AS in settlement of the underwriting fee. Following issuance of these shares, the total number of shares increased to 4,611,626,116, of which Anchor AS holds 4,294,883,957 shares, representing approximately 93.13 percent of the issued share capital.
On April 13, 2026, the Group extended an unsecured USD 7.0 million short-term loan with Anchor AS. The extended loan has a new maturity date of October 13, 2026.
These events are considered non-adjusting events after the reporting period.
Definition of alternative performance measures
An Alternative Performance Measure ("APM") is a financial measure of historical or future performance, financial position, or cash flows that is not defined or specified under the applicable financial reporting framework.
The Group uses the following APMs to evaluate performance and liquidity and to provide additional information to investors and stakeholders. These measures should not be considered a substitute for IFRS measures and may not be comparable with similarly titled measures used by other companies.
| EBITDA | EBITDA is an acronym for Earnings Before Interest, Tax, Depreciation, and Amortization. EBITDA is EBIT excluding depreciation, amortization, and impairment. |
|---|---|
| EBITDA is reflected on the Group's statement of income, in note 2 segments, and in the financial highlight tables in this report in lines similarly titled. An EBITDA loss of 3.8 million has been reported for the first quarter of 2026. | |
| EBITDA Margin | EBITDA margin is calculated by dividing EBITDA by revenues. |
| EBITDA margin has been calculated and is reported in the financial highlight tables for REC Silicon Group, in the key financials table for each operating segment, and in note 2 segments. | |
| EBITDA Contribution | EBITDA contribution is used to describe the contribution of each of the operating segments, other, and eliminations to the Group's total EBITDA. |
| For the operating segments, EBITDA contributions represent revenues less cost of manufacturing excluding depreciation and amortization. For other, EBITDA contribution represents primarily operating costs. | |
| A table reconciling the EBITDA contribution of each operating segment along with other and eliminations to the Group's total EBITDA can be found in note 2 segments. | |
| EBIT | EBIT represents profit or loss before income tax expense, net financial items, and share of profit or loss from associates. |
| --- | --- |
| EBIT is reflected on the consolidated statement of income on the line titled EBIT. EBIT has been reported as a loss of USD 7.1 million for the first quarter of 2026. | |
| EBIT excluding impairment charges | is calculated by taking EBIT and excluding impairment. For the first quarter of 2026 this is a loss of USD 6.1 million. |
| EBIT Margin | EBIT margin is calculated by dividing EBIT by revenues. EBIT and revenues are reflected on the Group's statement of income, in note 2 segments, and in the financial highlight tables in this report in lines titled similarly. |
| EBIT margin has been calculated and is reported in the financial highlight tables for REC Silicon Group. |
| EBIT Contribution | EBIT contribution is used to describe the contribution of each of the operating segments, other, and eliminations to the Group’s total EBIT. For the operating segments, EBIT contributions represent revenues less cost of manufacturing including depreciation and amortization. For other, EBIT contribution represents primarily operating costs.
A table reconciling the EBIT contribution of each operating segment along with other and eliminations to the Group’s total EBIT can be found in note 2 segments. |
| --- | --- |
| Equity Ratio | The equity ratio is calculated by dividing total shareholders’ equity by total assets. Total shareholders’ equity and total assets are reflected on lines similarly titled on the Group’s statement of financial position.
On March 31, 2026, the equity ratio is negative 325.0 percent and is calculated by dividing USD negative 455.6 million total shareholders’ equity by USD 140.2 million in total assets. |
| Net Debt | Net debt is the carrying value of interest-bearing debt instruments (including financing leases) less cash and cash equivalents.
The carrying value of debt can be found in note 6 borrowing in the table under the caption carrying amount, the amounts of lease liabilities are reflected on the balance sheet, and cash can be found in the statement of financial position on the line titled cash and cash equivalents.
On March 31, 2026, net debt was USD 496.3 million calculated as USD 453.4 million total carrying value of the Group’s debt, from note 6, plus USD 48.1 million current and non-current lease liabilities (from the balance sheet) less USD 5.2 million in cash and cash equivalents. |
| Nominal Net Debt | Nominal net debt is the contractual repayment values of interest-bearing debt instruments (including financing leases) less cash and cash equivalents.
The contractual repayment values of debt can be found in note 6 borrowing in the table under the caption contractual repayments excluding interest, the amounts of lease liabilities are reflected on the balance sheet, and cash can be found in the statement of financial position on the line titled cash and cash equivalents.
On March 31, 2026, nominal net debt was USD 496.3 million, calculated as USD 453.4 million contractual repayment values of the Group’s debt from note 6, plus USD 48.1 million current and non-current lease liabilities (from the balance sheet) less USD 5.2 million in cash and cash equivalents. |
| --- | --- |
| Nominal Debt | Nominal debt is the contractual repayment values of interest-bearing debt instruments including financing leases.
The contractual repayment values of debt can be found in note 6 borrowing in the table under the caption contractual repayments excluding interest, the amounts of lease liabilities are reflected on the balance sheet, and cash can be found in the statement of financial position on the line titled cash and cash equivalents.
On March 31, 2026, nominal debt was USD 501.5 million calculated as USD 453.4 million contractual repayment values of the Group’s debt from note 6, plus USD 48.1 million current and non-current lease liabilities (from the balance sheet). |
RECSILICON
REC Silicon ASA
Lysaker Torg 5, 3 etg.
PO Box 63
1324 Lysaker
Norway
About REC Silicon
REC Silicon is a global leader in silane based high purity silicon materials. We combine over 40 years experience and best-in-class proprietary technology to deliver on customer expectations. Our two U.S. based plants have a combined production capacity of more than 30,000 MT of high purity silane gas. REC Silicon is headquartered in Lysaker, Norway and listed on the Oslo stock exchange under the ticker: RECSI.
Phone +47 407 24 086
For more information, go to: www.recsilicon.com
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