Elkem (ELK) Q4 2025 earnings summary

Executive summary

• Entered agreement to sell the majority of the Silicones division to Bluestar, settled via redemption of Bluestar's shares, making minority shareholders the new 100% owners and streamlining the business.

• Q4 2025 results were resilient despite weak demand, supported by cost improvements and strong market positions.

• Silicones division reclassified as discontinued operations; improved Q4 EBITDA by 6% despite lower sales prices and volumes.

• Tragic accident at a French plant resulted in two fatalities; safety remains a top priority and investigations are ongoing.

• Board proposed no dividend for 2025 due to share redemption linked to the Silicones sale.

Financial highlights

• Q4 2025 operating income was NOK 7,284 million, down 14% year-over-year; EBITDA was NOK 890 million (12% margin), down 24%.

• Excluding Silicones, Q4 operating income was NOK 4 billion and EBITDA NOK 485 million (12% margin).

• EPS for Q4 2025 was NOK (0.28); full-year EPS NOK (1.05).

• Net interest-bearing debt at NOK 11.9 billion; leverage ratio 3.5x LTM EBITDA; equity ratio at 51%.

• Cash flow from operations in Q4 2025 was NOK 829 million, driven by lower CapEx and positive working capital changes.

Outlook and guidance

• Trade regulations and protective measures expected to continue impacting markets and create uncertainty.

• Silicon Products faces subdued demand and is reducing capacity in Norway; negative EBITDA but positive cash flow expected.

• Carbon Solutions expects slight improvement in sales volumes, but overall demand remains weak.

• Silicones prices in China have increased due to reduced supply, but demand remains weak.

• Guidance for 2026 anticipates more than 10% top-line growth and a return to historical earnings levels.