This article first appeared on GuruFocus .
Release Date: February 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Elkem ASA ( ELKEF ) maintained close to full capacity utilization throughout the quarter, unlike many competitors who curtailed production.
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The company achieved an EBITDA of NOK 890 million for the fourth quarter, representing a 12% margin.
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Elkem ASA ( ELKEF ) successfully mitigated low demand and declining sales prices through cost improvements in raw materials and operations.
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The sale of the silicon division to Blue Star is expected to improve Elkem ASA ( ELKEF )'s capital allocation and growth potential.
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Elkem ASA ( ELKEF ) has strong market positions and a diversified business model, which helped meet financial targets despite challenging market conditions.
Negative Points
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The fourth quarter operating income was down 14% compared to the previous year, primarily due to lower sales prices.
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Elkem ASA ( ELKEF ) faced a tragic accident at a plant in France, resulting in fatalities and overshadowing other ESG achievements.
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Trade barriers and tariffs, particularly in the US, have increased costs and affected market dynamics for Elkem ASA ( ELKEF ).
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The company decided not to distribute a dividend for 2025 due to the share redemption related to the silicon division sale.
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The automotive and construction markets, key sectors for Elkem ASA ( ELKEF ), are experiencing weak demand, impacting sales.
Q & A Highlights
Q: What is the expected impact on Elkem's financials after the sale of the silicon division to Blue Star? A: Helge Aasen, CEO, explained that the transaction will result in the redemption of all Blue Star's shares in Elkem, impacting Elkem's equity. The sale will allow Elkem to focus on its core divisions, improve capital allocation, and pursue growth opportunities in carbon solutions and silicon products.
Q: How will the transaction affect Elkem's debt and leverage ratios? A: Morten Viga, CFO, stated that post-transaction, Elkem's net interest-bearing debt will be approximately NOK 8.3 billion, with a leverage ratio of 3.6 times EBITDA. The company plans to raise additional equity to further improve its financial position.
Q: What are the strategic reasons behind the sale of the silicon division? A: Helge Aasen, CEO, highlighted that the sale will enable Elkem to focus on its core strengths in carbon solutions and silicon products, allowing for better capital allocation and growth potential. The transaction also provides the silicon division with access to greater investment capacity under Blue Star's ownership.
Q: Are there any specific growth opportunities Elkem is considering post-transaction? A: Helge Aasen, CEO, mentioned that Elkem is assessing various opportunities to accelerate growth in carbon solutions and silicon products. Details will be shared in a future capital markets update after the transaction is completed.
Q: What are the expectations for Elkem's performance in 2026? A: Helge Aasen, CEO, indicated that Elkem anticipates improved margins and results in 2026, driven by both market-related factors and cost efficiency improvements. The company is optimistic about the outlook, although Q1 is expected to be in line with Q4 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
