Norway · Delayed Price · Currency is NOK Elkem ASA Earnings Call Transcripts
Fiscal Year 2026
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Key resolutions, including a share purchase agreement with Bluestar and a related share capital decrease, were approved with 77.2% of share capital represented. All proposals passed without opposition or significant questions.
Fiscal Year 2025
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Q4 saw a 14% drop in operating income and a 24% decline in EBITDA, with all divisions impacted by lower sales prices. The sale of the Silicones division to Bluestar will transform the company, with minority shareholders becoming sole owners and a NOK 1.5 billion equity raise planned.
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Q3 saw operating income down 7% YoY to NOK 7.5B and EBITDA at NOK 829M, with all divisions impacted by weak prices but supported by cost improvements. Silicones is under strategic review, and leverage remains above target. Strategic deleveraging and disciplined spending are planned.
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Q2 saw weak markets and price pressure, but strong cost positions and high utilization supported results. EBITDA was NOK 803 million, with Silicones under strategic review and a positive tax effect expected in Q3. Market conditions remain challenging, but cost discipline and new contracts support outlook.
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Q1 operating income rose 1% YoY to NOK 8 billion, with group EBITDA at NOK 898 million and a margin of 11%. Silicones and carbon solutions improved, while silicon products declined due to weak demand and maintenance. Strategic review of Silicones continues, with market uncertainty from global trade tensions.
Fiscal Year 2024
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Q4 operating income rose 5% year-over-year to NOK 8.5 billion, with EBITDA at NOK 1.2 billion and a 14% margin. A strategic review of the Silicones division was launched, and improvement programs exceeded targets. Market conditions remain weak, but strong cost positions and new contracts support outlook.
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EBITDA reached NOK 1.2 billion with a 15% margin, driven by Silicones and new China capacity, despite weak markets. CapEx and improvement programs are ahead of plan, while overcapacity and subdued demand continue to pressure prices.
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Q2 saw stable profitability with EBITDA at NOK 1 billion and EPS at NOK 1.65, despite weak demand and oversupply in key markets. Improvement programs are ahead of plan, and CapEx is being reduced, while the Silicones expansion in China is expected to have limited EBITDA impact in 2024.