Elkem's Q3 2025: Operational improvements drive results despite market challenges

Elkem reported EBITDA of NOK 829m for Q3 2025, a 33% decrease from NOK 1,241m in Q3 2024, on total operating income of NOK 7,523m, down 7% year-on-year. Despite low sales prices, strong operational performance and cost improvements supported the results. EPS for the quarter was NOK 0.05, with year-to-date EPS of NOK -0.77, negatively impacted by Silicones. The Silicones division, classified as discontinued operations, saw a 23% year-on-year increase in EBITDA to NOK 248m due to improved cost and market positions.

The strategic review of the Silicones division is proceeding as planned, with an exclusive sales process expected to close in H1 2026. This divestment aims to streamline Elkem and reallocate capital towards growth in the Silicon Products and Carbon Solutions divisions. Silicon Products faced challenges from low silicon and ferrosilicon prices, leading to a 53% EBITDA decline to NOK 389m, while Carbon Solutions reported an EBITDA of NOK 231m, down 14% with a 28% margin.

Elkem's financial position remains robust, with equity totaling NOK 23,968m as of September 30, 2025, representing a 50% equity ratio. Net interest-bearing debt stood at NOK 11,666m, with a leverage ratio of 3.1x. The company maintains strong liquidity with NOK 3,968m in cash and NOK 6,000m in undrawn credit lines.