Second quarter 2026 - Driving cost improvements and deleveraging

10 Jul 2026 07:00 CEST

Oslo, 10 July 2026

Elkem reported an EBITDA of NOK 523 million for the second quarter 2026, a
decline from NOK 645 million in the corresponding quarter last year. The
reduction was mainly explained by lower sales prices for silicon. Elkem's
transformation continues to build momentum. The organisational streamlining is
completed and cost reductions are on track and ahead of target. Measures to
strengthen the balance sheet have been successfully concluded. Elkem raised NOK
1.8 billion in new equity and refinanced its main bank facilities.

Elkem's total operating income for the second quarter 2026 was NOK 3 708
million, which was down 4 per cent from the second quarter 2025. Earnings before
interest, taxes, depreciation and amortisation (EBITDA) was NOK 523 million,
down 19 per cent from the corresponding quarter last year.

The Silicon Products division was impacted by low prices for silicon and
ferrosilicon, yet the EBITDA improved quarter-on-quarter, partly as a result of
production resuming at the Elkem Rana and Elkem Salten plants. The EU safeguard
measures introduced on imports of ferroalloys in November 2025 have so far had
limited impact on prices, reflecting weak demand and continued substitution
risk. Prices are expected to gain as ferroalloy supply may tighten following the
EU's decision to decrease tariff-free steel quotas and double tariffs beyond the
quotas as of 1 July 2026. Silicon Products reported a total operating income of
NOK  2 946 million, a reduction of 4 per cent compared to the second quarter
last year, while the EBITDA declined 28 per cent year-on-year. Carbon Solutions
reported an EBITDA of NOK 172 million, down 29 per cent from the second quarter
last year. The lower EBITDA was mainly due to lower sales volume and lower
average sales prices.

Elkem Iceland's performance has been weak since 2024, driven by a structurally
higher cost base compared to other Elkem plants. Strategic options are being
assessed and Elkem Iceland has been reclassified as discontinued operations.

Elkem initiated significant cost-reduction measures as of March 2026, to improve
productivity and maintain a strong cost position. The initial target was to
reduce the global workforce by approximately 300 FTEs. Once completed, the
programme will have exceeded the target, nearing a reduction of 400 FTEs. The
target is to deliver annual savings of more than NOK 600 million. In addition,
Elkem is targeting a working capital reduction of NOK 1 000 million. By the end
of the second quarter, working capital reductions amounted to NOK 841 million
from year-end 2025. Investments will be capped at a maximum of NOK 1 000 million
for the year. Total investments YTD-June stood at NOK 304 million.

"Elkem's transformation is gaining real momentum, with the organisational
streamlining completed, cost reductions exceeding targets, and a successful
refinancing demonstrating strong market confidence. We are actively pursuing
strategic options across the portfolio while positioning for growth and margin
improvements. Structural demand, driven by digitalisation, AI infrastructure,
energy transition and defence, continues to strengthen our long-term outlook.
This provides a solid foundation for sustainable value creation," says CEO Helge
Aasen.

Elkem completed a NOK 1 800 million equity raise in the second quarter and
refinanced its main bank facilities of EUR 1 000 million. In addition, Elkem has
obtained a loan of NOK 750 million from the Nordic Investment Bank (NIB) on
attractive conditions with a tenor of 10 years. Combined, these transactions
have materially strengthened Elkem's financial position

Elkem equity as at 30 June 2026 amounted to NOK 12 628 million, which gave a
ratio of equity to total assets of 44 per cent. Net interest-bearing debt was
NOK 6 593 million, which gave a ratio of net interest-bearing debt to EBITDA of
3.2x. Elkem had cash and cash equivalents of NOK 4 876 million as at 30 June
2026, and undrawn credit lines of more than NOK 4 500 million.

In the second quarter, Elkem and Statkraft signed a new long-term power purchase
agreement (PPA). The PPA is for the 2031-2037 period, and the total contract
volume is 1,534 GWh. The agreement secures competitive and predictable
electricity supply for Elkem's plant in Bjølvefossen, Norway. Elkem has a strong
portfolio of long-term power contracts in Norway, and this agreement is a
significant contribution to the extension of the portfolio.

On 2 July 2026, Elkem announced the appointment of Dag Teigland as CEO by the
board of directors, effective 3 August 2026. Aasen will step down from his role
as CEO and assume the position of chairman of the board. Teigland brings over
two decades of industrial and investment experience, and also has prior
experience from Elkem, where he held several leadership roles between 1998 and
2002.

Trade regulations and protective measures are expected to continue affecting
Elkem's markets, and could support a recovery in demand and prices in the EU.
Elkem's cost reduction programme will continue to contribute positively to the
results from the third quarter and onwards. Silicon Products is still
experiencing challenging market conditions. The underlying profitability is
improving, but third quarter is expected to be impacted by seasonally lower
activity. Carbon Solutions expects generally stable financial performance in the
third quarter.

From the third quarter 2026, Elkem will report on the new divisional structure,
i.e. Elkem Silicon, Elkem Foundry Alloys and Elkem Carbon.

For further information, please contact:
Odd-Geir Lyngstad
VP Finance & Investor Relations
Tel: +47 976 72 806
Email: odd-geir.lyngstad@elkem.com

Marianne Stigset
VP Corporate Communications & Public Affairs
Tel: +47 411 88 482
E-mail: marianne.stigset@elkem.com

About Elkem ASA
With a strong track record since 1904, Elkem is one of the world's leading
providers of advanced silicon-based materials shaping a better and more
sustainable future. The company develops silicones, silicon products and carbon
solutions by combining natural raw materials, renewable energy and human
ingenuity. Elkem has been awarded top score of A on Forests and Water Security,
and B on Climate Change from CDP. Elkem is listed on the Oslo Stock Exchange
(ticker: ELK), where the company is also included in the ESG
Index. www.elkem.com

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677962_Elkem_ASA_2Q_2026_Report.pdf
677962_Elkem_ASA_2Q_2026_Presentation.pdf
677962_Elkem_ASA_2Q_2026_Press_release.pdf