Elkem (ELK) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw low demand, turbulent markets, and impacts from maintenance stops and power curtailment, with EBITDA reaching NOK 898 million and an 11% margin.

• Silicones division, under strategic review and reclassified as discontinued operations and assets held for sale, contributed significantly to EBITDA improvement.

• Carbon Solutions delivered stable, high-margin results, while Silicon Products declined due to weak demand and operational disruptions.

• Strong ESG performance with launch of recycled silicones and green shipping initiatives.

• Focus remains on cash generation and disciplined capital spending amid ongoing trade and tariff disputes.

Financial highlights

• Total operating income for Q1 2025 was NOK 8,016 million, up 1% year-over-year.

• EBITDA increased 25% year-over-year to NOK 898 million, with a margin of 11%; EBIT rose to NOK 181 million.

• EPS was NOK -0.33, improved from NOK -0.69 last year; excluding Silicones, EPS was NOK +0.24.

• Net interest-bearing debt stood at NOK 11 billion, leverage ratio at 2.5x EBITDA, equity ratio at 50%.

• Cash flow from operations was NOK 97 million, negatively impacted by working capital changes.

Outlook and guidance

• Market uncertainty remains high due to global trade tensions and tariffs; Silicones likely to be affected, with French sites potentially benefiting from China disruptions.

• Silicon Products expected to face continued low demand and declining EU reference prices.

• Carbon Solutions expected to maintain stable performance due to strong cost and market positions.

• No extensive maintenance stops planned for Q2; curtailment in Iceland expected to improve.

• Strategic review of Silicones division targeted for completion by year-end.