Elkem (ELK) Q2 2026 earnings summary

Executive summary

• Transformation and cost reduction initiatives are ahead of target, with organizational streamlining completed and annual savings exceeding NOK 600 million; workforce reduced by 400 FTEs.

• 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 strategic review; Silicones division sold and derecognized.

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

• Strong ESG performance, including EcoVadis gold rating and improved safety metrics.

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 6.6 billion, 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 improved to NOK 733 million in Q2 2026.

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; Carbon Solutions expects stable performance.

• 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.