Elkem Sells Silicones Division Amid Weak Markets, Reports Q4 2025 EBITDA Drop — Elkem ASA

Event summary

Elkem reported a 24% YoY drop in Q4 2025 EBITDA to NOK 890 million, with operating income down 14% to NOK 7.3 billion.
The company agreed to sell the majority of its Silicones division to Bluestar for NOK 338.3 million in shares.
Silicon Products division saw a 53% YoY EBITDA decline due to low silicon and ferrosilicon prices.
Silicones division reported a 6% YoY EBITDA increase despite a 14% reduction in operating income.
Elkem's board proposed no dividend for 2025 due to the share redemption impact on equity.

The big picture

Elkem's divestiture of its Silicones division reflects a strategic pivot toward core competencies amid weak market conditions. The move enhances financial flexibility but comes at a time when the company faces geopolitical uncertainties and pricing pressures across its key divisions. With a strong geographic presence and cost positions, Elkem aims to navigate these challenges while positioning itself for improved market conditions.

What we're watching

Strategic Focus: How Elkem's shift to a pure-play metals and materials business will position it for future growth.
Market Recovery: Whether the temporary capacity reduction in Norway will successfully manage inventory levels amid subdued demand.
Regulatory Impact: The pace at which EU safeguard measures on ferroalloys will translate into improved results for Elkem's Silicon Products division.