Elkem's Resilience: Strong Q3 2025 Operational Performance
Elkem Reports Strong Operational Performance
Elkem has demonstrated impressive resilience in its operational performance despite facing challenging market conditions in the third quarter of 2025. The company reported an EBITDA of NOK 829 million, a decrease from NOK 1,241 million in the same quarter last year. This steady performance stems from significant improvements in operations and effective cost management strategies.
Quarterly Financial Overview
Although Elkem's total operating income for Q3 2025 was NOK 7,523 million, reflecting a 7% decline compared to Q3 2024, the company's efforts to cut costs are notably acknowledged during this period. EBITDA of NOK 829 million indicates a 33% drop from the previous year’s figures, while earnings per share (EPS) was reported at NOK 0.05 for the quarter and NOK -0.77 year-to-date, significantly impacted by the Silicones division, which has been classified as part of discontinued operations.
Division Performance Insights
The Silicon Products division faced difficulties due to low prices of silicon and ferrosilicon. Its operating income fell to NOK 3,369 million, down 8% year-on-year, impacting EBITDA by 53%. In contrast, the specialty segments within Elkem showed resilience with improved financial results. The Carbon Solutions division generated NOK 231 million in EBITDA despite a 14% decrease from last year, resulting in an EBITDA margin of 28% due to fluctuating raw material costs and pricing.
CEO's Statement on Market Dynamics
CEO Helge Aasen expressed confidence in the company's ongoing strategies, stating, "Despite the pricing pressures in the market, we are well-positioned for future growth thanks to our strong operational strategies. Our diversified geographic presence and solid client relationships allow us to adapt effectively to changing market trends." These insights underline Elkem's strategic shift aimed at enhancing growth and operational efficiency amid rising market challenges.
Strategic Business Review and Future Growth
Elkem's current focus includes a strategic review aimed at selling the Silicones division, which is in the process of streamlining the company's business portfolio. This endeavor is expected to provide significant benefits for the organization and stakeholders alike, with closure of the transaction anticipated in the first half of 2026. The firm is also preparing for potential EU safeguard measures, which may impact pricing and production moving forward, as well as deal with countervailing duties from the US.
Financial Health and Future Prospects
As of September 30, 2025, Elkem's equity totaled NOK 23,968 million, representing a 50% equity ratio to total assets. The company maintained net interest-bearing debt of NOK 11,666 million, with a ratio to EBITDA of 3.1x. With cash and equivalents of NOK 3,968 million and unused credit lines of NOK 6,000 million, Elkem's financial health appears robust despite the challenges posed by ongoing market volatility.
Frequent Market Changes
Elkem's divisions are grappling with fluctuating demand, especially in the Silicon Products segment. Although faced with market pressures, the strong cost positions and performance in specialty segments are assisting the company in mitigating negative impacts. As the silicones market seeks to stabilize prices, opportunities arise for Elkem to adapt with a focus on sustainable production methods.
Contact Information
For more information, please reach out to Odd-Geir Lyngstad, VP Finance & Investor Relations, at +47 976 72 806 or email odd-geir.lyngstad@elkem.com. Additionally, contact Marianne Stigset, VP Corporate Communications & Public Affairs, at +47 411 88 482 or email marianne.stigset@elkem.com.
About Elkem
Elkem is a premier global supplier of advanced silicon-based materials dedicated to forming a more sustainable future. The company thrives on developing silicones, silicon products, and carbon solutions, innovatively combining natural resources with renewable energy and expertise to contribute to industries like electric mobility and healthcare innovation. With a legacy of excellence and over 7,200 employees worldwide, Elkem aims to deliver strong performance across varying markets.
Frequently Asked Questions
What did Elkem achieve in Q3 2025?
In Q3 2025, Elkem reported an EBITDA of NOK 829 million supported by strong operational performance and cost improvements.
How did the different divisions perform?
The Silicon Products division faced a decline, while Carbon Solutions showed improved results despite weak demand overall in the segment.
What strategic actions is Elkem undertaking?
Elkem is reviewing its Silicones division for potential sale to focus on growth within the Silicon Products and Carbon Solutions divisions.
How is Elkem's overall financial health?
Elkem's equity ratio is at 50%, with significant cash reserves and undrawn credit lines helping maintain financial stability.
What external factors impact Elkem’s business?
Elkem is navigating geopolitical tensions, pricing pressures, and potential new regulations in Europe and the US affecting the silicon market.
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