Elkem (OB:ELK) Q3 Earnings Revive Profit But Margin Questions Persist

Elkem stock closed at NOK31.46 heading into the Q3 2026 report, with a flat three month return and a choppy one month stretch that left many investors cautious. The earnings headline was simple yet powerful. Core profitability snapped back, with basic earnings per share at NOK1.19 and net income from continuing operations firmly in positive territory, while discontinued operations remained a drag. The market has treated Elkem as a troubled cyclical play. The latest numbers instead portray a chemicals group wrestling with margin pressure today and valuation questions that stretch over several years.

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Q3 2026 Elkem Earnings Summary

• Revenue (Q3 2026 vs Q3 2025): NOK 3,587 million vs. NOK 4,075 million (decline of 12.0%)
• Net Income from Continuing Operations, Trailing 12 Months to Q3 2026 vs. Trailing 12 Months to Q3 2025: NOK 561 million vs. NOK 717 million (decline of 21.8%)
• Basic EPS (Q3 2026 vs Q3 2025): NOK 1.19 per share vs. NOK 0.34 per share (increase of 246.9%)
• Net Income Excluding Extra Items, Trailing 12 Months to Q3 2026 vs. Trailing 12 Months to Q3 2025: NOK 494 million vs. NOK 636 million (decline of 22.3%)

Tired of slogging through dense earnings tables and PDFs for Elkem? See the whole story in one visual, including how the balance sheet compares with the latest Q3 2026 numbers, in our company report for Elkem.

Elkem Bull Case: Balance Sheet And Cash Milestones Land

The optimistic view on Elkem leans heavily on internal self help turning a cyclical producer into a steadier cash engine.

"The main thing that has to go right is that Elkem converts its cost program, working capital release and power contracting into sustainably healthier margins in markets that are still weak today."

Q3 shows real progress against that script. Management reports the >NOK 600m cost program largely implemented, with savings expected to flow through from Q4. Working capital reduction has already reached about NOK 1b, hitting the 2026 target early and lifting operating cash flow. Long term power deals and NOK 1.2b of ETS allowances now sit on the balance sheet as tangible support for future cost visibility.

One Narrative disagrees with today's price. → See where this Narrative says Elkem should trade.

Elkem Bear Case: Weak Segments Still Weigh On Returns

The cautious view says Elkem’s weakest assets and end markets will quietly cap the payoff from all this balance sheet work.

"For Elkem, bearish analysts expect that weak silicon and carbon markets, together with underperforming assets such as Elkem Iceland, will keep returns on the refocused metals portfolio under pressure even after the Silicones sale."

Q3 supports that concern. Group EBITDA fell 14% while Silicon EBITDA dropped 43% and Carbon EBITDA declined 21%, even as cash generation and working capital milestones improved. Foundry Alloys accounted for 43% of group EBITDA. Elkem Iceland remains under review and still needs further measures to restore profitability. Cost savings are largely in place, yet segment earnings do not yet show clear uplift beyond offsetting soft pricing and volumes.

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