Elkem (ELK) Q2 2026 earnings summary

Executive summary

• Transformation and cost reduction initiatives are ahead of target, with organizational streamlining and workforce reductions exceeding expectations.

• NOK 1.8 billion in new equity raised and main bank facilities refinanced, significantly reducing net debt and improving leverage ratio to 3.2x.

• Elkem Iceland reclassified as discontinued operations due to persistent weak results and ongoing strategic review.

• New CEO Dag Teigland appointed, effective August 2026, bringing extensive industry experience.

• Strong ESG performance, with improved safety metrics and top-tier sustainability ratings.

Financial highlights

• Q2 2026 operating income was NOK 3,708 million, down 4% year-over-year, mainly due to lower sales prices.

• EBITDA for Q2 2026 was NOK 523 million, down 19% year-over-year, with a margin of 14%.

• Net interest-bearing debt at quarter-end was NOK 6,593 million, with a leverage ratio of 3.2x.

• EPS for continued operations was NOK -0.15 for the quarter; total EPS was NOK -2.09, mainly due to discontinued operations.

• Cash flow from operations was NOK 733 million, a significant year-on-year improvement.

Outlook and guidance

• Cost reduction program will continue to contribute positively from Q3 2026 onward, with NOK 600 million annual savings expected.

• Third quarter expected to be impacted by seasonally lower activity, especially in Europe.

• Trade regulations and protective measures in the EU and U.S. may support demand and price recovery if effective.

• New divisional reporting structure to be implemented from Q3 2026.

• Carbon Solutions expects stable performance in Q3 2026.