Elkem (ELK) investor relations material

Executive summary

• Sale of Silicones division to Bluestar closing 30 April 2026, transforming the company into a pure-play metals and materials business and sharpening strategic focus.

• NOK 1.5 billion equity raise and EUR 1 billion fully underwritten debt refinancing secured to strengthen the balance sheet.

• Significant cost reduction program underway, targeting NOK 600 million in annual savings and a 10% workforce reduction by year-end 2026.

• Reorganization into three divisions: Silicon, Foundry Alloys, and Carbon, with new management appointments and CEO to become chairman.

• Challenging market conditions persist due to trade regulations and geopolitical uncertainty.

Financial highlights

• Q1 2026 operating income (excluding Silicones) was NOK 4,053 million, down 7% year-over-year.

• Q1 2026 EBITDA was NOK 249 million, down 65% year-over-year, with a 6% EBITDA margin.

• Silicon Products EBITDA fell 75% to NOK 122 million; Carbon Solutions EBITDA down 37% to NOK 165 million.

• EPS for Q1 2026 was NOK 0.56 per share; equity ratio at 42%, pro forma 46% after equity raise.

• Net interest-bearing debt at NOK 9,275 million; leverage ratio 5x EBITDA, pro forma 4x after equity raise.

Outlook and guidance

• Market conditions remain challenging with low visibility due to trade regulations, geopolitical uncertainty, and Middle East conflict.

• Gradual improvement expected as production returns to full capacity; Q2 profitability to improve but not yet at normal levels.

• Silicon Products expected to see gradual improvement; Carbon Solutions anticipates stable performance.

• Working capital reduction of NOK 1 billion targeted for 2024, with most realized in Q2.

• Cost reduction program to deliver half of NOK 600 million savings by end of 2026.