• Operating Income: NOK8 billion, up 1% year-over-year.
• EBITDA: NOK898 million, with a margin of 11%.
• Silicones Division Operating Income: Almost NOK3.8 billion, up 16% year-over-year.
• Silicones Division EBITDA: NOK201 million.
• Silicon Products Division Operating Income: NOK3.5 billion, down 12% year-over-year.
• Silicon Products Division EBITDA: NOK489 million, with a margin of 14%.
• Carbon Solutions Division Operating Income: NOK860 million, up 3% year-over-year.
• Carbon Solutions Division EBITDA: NOK261 million, with a margin of 30%.
• Net Finance Expenses: Minus NOK192 million.
• Net Debt: NOK11 billion.
• Debt Leverage: 2.5 times EBITDA.
• Cash Flow from Operations: Plus NOK97 million.
• Total Investments: NOK414 million.
• EPS (Earnings Per Share): Minus NOK0.33 per share.
• Equity Ratio: Approximately 50%.

• Warning! GuruFocus has detected 6 Warning Signs with STU:1DP.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Elkem ASA (STU:1DP) reported a first-quarter EBITDA of NOK898 million, with an EBITDA margin of 11%, showing resilience despite market challenges.
• The Silicones division benefited from improved cost positions, particularly in China, leading to significant results improvement compared to the previous year.
• Elkem ASA's Carbon Solutions division delivered stable results and high margins, maintaining strong financial performance.
• The company is actively engaged in ESG initiatives, including reducing CO2 emissions and launching a range of recycled silicones with a lower carbon footprint.
• Elkem ASA's diverse geographical presence and regional business model provide opportunities to mitigate the impact of global trade tensions.

Negative Points

• Global trade tensions and market uncertainties are affecting Elkem ASA's trade flows and market demand, impacting overall results.
• The Silicones division faced weak market conditions and maintenance stops, which hampered results compared to the previous quarter.
• Power curtailment in Iceland led to reduced capacity utilization, negatively impacting production.
• The US silicon market is experiencing oversupply, putting downward pressure on sales prices.
• The company's first-quarter EPS was negative, impacted by losses from the Silicones division, which is under strategic review.

Q & A Highlights

Q: Can you elaborate on the impact of maintenance stops and whether operations have resumed in April? A: Maintenance stops are necessary for maintaining asset conditions. We accelerated some projects during the low business cycle to prepare for future demand. The direct loss from these stops was approximately NOK125 million for the quarter. Operations have resumed, and we don't plan extensive stops in the second quarter. - Helge Aasen, CEO

Q: Will there be more maintenance stops or curtailments in the second quarter? A: We do not plan extensive maintenance stops in the second quarter, and the situation in Iceland is improving. - Helge Aasen, CEO

Q: How will the negative price movement in silicon metal affect volumes and other product categories? A: We are well-positioned, and while there were volume reductions due to maintenance in Q1, we don't plan for that in Q2. We aim to maintain the current run rate, though indirect effects are hard to predict. - Helge Aasen, CEO

Q: Have there been any changes in trading patterns or pre-buying from customers in the first quarter? A: There were small movements, mainly in the fourth quarter, with a buildup of foundry alloys in the US in anticipation of tariffs. It hasn't had a material impact. - Helge Aasen, CEO

Q: Has the US tariff situation impacted the timeline and negotiations for the strategic review of the silicon segment? A: We cannot provide details on the process, but it is well underway, and we expect to conclude by the end of the year as planned. - Helge Aasen, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.