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Elkem (ELK) investor relations material

Elkem Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary11 Jul, 2025

Executive summary

  • Stable financial results in Q2 2025 despite weak market conditions, supported by strong cost positions and operational performance.

  • Strategic review of the Silicones division is ongoing, classified as discontinued operations and assets held for sale, with a status update expected in Q3.

  • Norwegian Ministry of Climate and Environment ruled in favor of the company on EU ETS emission allowances, reducing future CO2 quota costs.

  • Strong ESG performance recognized by EcoVadis and CDP; NOK 33 million awarded for green product innovation.

  • Long-term power purchase agreement signed to support low-emission production and climate roadmap.

Financial highlights

  • Q2 2025 operating income was NOK 7,982 million, down 6% year-over-year; EBITDA was NOK 803 million, down 22%.

  • Silicon Products operating income was NOK 3,550 million, down 13%; EBITDA NOK 345 million, down 54%.

  • Carbon Solutions operating income was NOK 854 million, down 15%; EBITDA NOK 242 million, down 27%, with a 28% margin.

  • Silicones operating income was NOK 3,876 million, up 3%; EBITDA NOK 247 million, up 449% year-over-year, with sales volume up 22% in Asia Pacific.

  • EPS for Q2 was negative NOK 0.49; year-to-date EPS is negative NOK 0.82.

Outlook and guidance

  • Market conditions are expected to remain subdued in Q3 2025, with continued price pressure in key segments.

  • Silicon Products faces challenging markets and low prices, but cost leadership mitigates impact.

  • Carbon Solutions benefits from cost positions and a diverse customer base.

  • Silicones markets expected to remain stable at low levels, but current prices are unsustainable long-term.

  • Status update on Silicones strategic review expected in Q3 2025.

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Frequently asked questions

Elkem ASA manufactures and sells metals and materials. The company operates through four segments: Stainless Steel, Special Metals, Mining and Others. It offers pig iron, liquid steel, semi-finished products, slabs and billets, as well as stainless steel products such as billets and slabs. Furthermore, Elkem ASAs' products include iron ore pellets, direct reduced iron (DRI) to various markets; and various other speciality irons. The company sells its products to vehicle manufacturers, electric appliance producers, industrial machinery manufacturers and construction industries. Elkem ASA is based in Oslo, Norway.

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