Elkem: First quarter 2026 - Strategic transformation and strengthening financial resilience

OSLO, Norway, April 30, 2026 /PRNewswire/ -- Elkem reported an EBITDA of NOK 249 million for the first quarter 2026, which was a decrease from NOK 710 million in the corresponding quarter last year. The reduction was mainly explained by production curtailments at multiple plants in Norway. Elkem expects to conclude the sale of the Silicones division today. Divesting the Silicones business will sharpen Elkem's strategic focus and tighten capital allocation. Elkem will conduct a guaranteed equity offering of NOK 1 500 million with a subsequent repair offering. In addition, Elkem has secured a fully underwritten debt refinancing of EUR 1 000 million.

Elkem's total operating income for the first quarter 2026 was NOK 4 053 million, which was 7 per cent lower than the first quarter 2025. Earnings before interest, taxes, depreciation and amortisation (EBITDA) was NOK 249 million, down 65 per cent from the corresponding quarter last year. Earnings per share (EPS) was NOK 0.56 in the quarter, adjusted for the redemption of Bluestar's shares.

The Silicon Products division was impacted by production curtailments at several plants, including complete stops at Elkem Rana and Elkem Salten. The market was characterised by weak demand and low sales prices. Implementation of safeguard measures in the EU for ferrosilicon and foundry alloys had limited price impact in the first quarter due to significant stock building prior to the announcement of the measures. Prices are expected to increase once stock levels normalise. Silicon Products reported a total operating income of NOK 3 338 million, a reduction of 5 per cent compared to the first quarter last year, while the EBITDA declined 75 per cent year-on-year. Carbon Solutions reported an EBITDA of NOK 165 million, down 37 per cent from the first quarter last year, resulting in an EBITDA margin of 23 per cent. The lower EBITDA was mainly due the negative impact from sales mix and currency, as well as the production curtailments in Silicon Products.

"Elkem is undergoing a major transformation to become a pure-play metals and materials company. Alongside streamlining the organisation and strengthening our balance sheet, these actions will enhance resilience, improve the quality of our earnings, and support sustainable shareholder returns over time. We are also implementing substantial cost reductions and optimising working capital to further increase our financial robustness. As we look ahead, these measures will underpin our competitiveness and ensure we remain resilient in a challenging global environment. We recognise the current difficulties in the market. Our results reflect these pressures. However, we are confident that Elkem is well positioned to grow once demand recovers due to its strong market and cost positions," says Elkem CEO Helge Aasen.

The conflict in the Middle East has had limited direct impact on Elkem. Sales prices in the EU will likely be impacted by higher transportation and energy costs. However, such positive effects may be countered by lower macroeconomic activity. Elkem has limited sales and no raw material sourcing from the area.  

Elkem entered into a final share purchase agreement regarding the sale of the majority of the Silicones division to Bluestar. The transaction will be settled through redemption of Bluestar's 338,338,536 shares in Elkem. Following the divestment, Elkem is further strengthening the competitiveness and financial resilience by introducing a new corporate structure and reducing working capital and annual costs. These cash optimising measures amount to NOK 1 300 million, in addition to permanent cost reductions with an annual effect of NOK 600 million starting from third quarter 2026. The cost reductions form a part of Elkem's efforts to streamline operations and are aimed at enhancing profitability amid ongoing market challenges.

Furthermore, Elkem will strengthen its balance sheet with a guaranteed NOK 1 500 million equity offering through a publicly announced bookbuilding process. A planned subsequent repair offering will allow shareholders the opportunity to buy new shares at the same price. In addition, Elkem has initiated a refinancing of the bank facilities. The refinancing of EUR 1 000 million has been fully underwritten by relationship banks, and subject to approval by the new Elkem board of directors.

Helge Aasen will be stepping down from his role as CEO. The nomination committee has proposed shareholder elected members to the Elkem board of directors with effect from the completion of the sale of the majority of Elkem's Silicones division. The nomination committee has proposed that Aasen shall be elected chairman of the new Elkem board. Aasen will continue to serve as CEO, ensuring a smooth transition until a successor is appointed and in place.

In April, Elkem announced the agreement to sell its biocarbon business in Saguenay, Québec in Canada, to CHAR Technologies Ltd. As part of the agreement, CHAR Tech will supply Elkem with 62 500 tonnes of biocarbon over five years. Through this supply agreement, Elkem secures a reliable source of biocarbon for its Canadian and European smelters. The financial impact of the transaction is not significant.

The Elkem group's proforma equity as at 31 March 2026 amounted to NOK 11 607 million, which gave a ratio of equity to total assets of 42 per cent. The proforma net interest-bearing debt was NOK 9 275 million, which gave a ratio of net interest-bearing debt to EBITDA of 5.0x. Elkem had cash and cash equivalents of NOK 2 894 million as at 31 March 2026, and undrawn credit lines of more than NOK 4 500 million.

The conflict in the Middle East, along with trade regulations and protective measures, is expected to keep impacting Elkem's markets, leading to continued uncertainty. However, Elkem is well positioned due to its diversified geographic presence and strong market and cost positions. Silicon Products is still experiencing difficult market conditions, but results are expected to improve gradually as production returns to full capacity. However, the second quarter will be affected by the costs associated with restarting production. Carbon Solutions anticipates a generally stable financial performance in the second quarter compared to the first quarter.

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 ASA

With a strong track record since 1904, 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 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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