Norway's Elkem Q1 EBITDA drops 65%, misses estimates amid weak demand and low sales

Elkem ASA

30/04/2026 06:18

Overview

Norway silicon-based materials maker's Q1 EBITDA fell sharply, missing analyst expectations

Q1 operating income declined 7% yr/yr amid weak demand and low sales prices

Company to sell Silicones division, launch NOK 1.5 bln equity offering, and refinance EUR 1 bln debt

Outlook

Silicon Products results expected to improve gradually as production returns to full capacity

Second quarter to be affected by costs associated with restarting production

Carbon Solutions anticipates generally stable financial performance in the second quarter

Result Drivers

PRODUCTION CURTAILMENTS - Co said lower Q1 results were mainly due to production curtailments at several Norwegian plants, including complete stops at Elkem Rana and Elkem Salten

WEAK DEMAND AND LOW PRICES - Market conditions were characterized by weak demand and low sales prices, impacting operating income and division results

SALES MIX AND CURRENCY - Carbon Solutions' lower EBITDA was mainly due to negative impact from sales mix and currency, as well as the production curtailments in Silicon Products

Company press release: ID:nWkr628nHt

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
NOK 0.56
Q1 EBITDA
Miss
NOK 249 mln
NOK 633 mln (4 Analysts)
Q1 Operating Income
NOK 4.05 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the specialty chemicals peer group is "buy"

Wall Street's median 12-month price target for Elkem ASA is NOK33.00, about 19.6% above its April 29 closing price of NOK27.60

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 32 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)