Elkem (ELK) Q4 2024 earnings summary

Executive summary

• Q4 2024 EBITDA was NOK 1,161 million with a 14% margin, up 84% year-over-year, driven by Silicones' best result since Q3 2022 and strong Carbon Solutions performance.

• Strategic review of the Silicones division initiated, reclassifying it as discontinued operations and assets held for sale to streamline the group and accelerate growth in Silicon Products and Carbon Solutions.

• Improvement and capex reduction programmes exceeded targets, delivering NOK 1.7 billion in realized effects and reducing capex by NOK 2.2 billion in 2024.

• Board proposed a dividend of NOK 0.30 per share, subject to AGM approval.

• Total operating income for Q4 2024 was NOK 8,498 million, up 5% year-over-year.

Financial highlights

• EBITDA for Q4 2024 was NOK 1,161 million, up from NOK 632 million in Q4 2023, with all divisions reporting improved EBITDA year-over-year.

• EPS for Q4 2024 was NOK -0.03; full-year EPS was NOK 0.77.

• Net interest-bearing debt at year-end was NOK 10.3 billion; leverage ratio at 2.5x EBITDA.

• Cash flow from operations for Q4 2024 was NOK 318 million; full year NOK 1,484 million.

• Equity ratio at year-end was 49%.

Outlook and guidance

• Improvement initiatives expected to continue benefiting results in Q1 2025, but markets remain highly uncertain.

• Silicones markets expected to remain stable, with benefits from new capacity in China and France, but Q1 2025 will be impacted by Chinese New Year and maintenance.

• Silicon Products to benefit from strong cost positions but will curtail production in Iceland and Norway due to power and maintenance.

• Carbon Solutions to maintain stable earnings, but Q1 2025 sales volume will be lower due to customer capacity reductions.