How Elkem’s New Medical Silicone Launch Amid Lower Q3 Profits Has Changed Its Investment Story (OB:ELK)

• Earlier in October 2025, Elkem ASA reported third quarter earnings showing reduced revenue and net income, and announced the launch of SILBIONE™ LSR Select EC 70, a new medical-grade liquid silicone rubber designed for healthcare and wearable tech devices.
• By combining high electrical conductivity and certified biocompatibility with advanced process control, Elkem is targeting precision healthcare applications and new markets, even as it faces challenging conditions in its ferrosilicon segment.
• We'll now explore how Elkem's new medical-grade silicone innovation could influence the company's overall investment narrative and future prospects.

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Elkem Investment Narrative Recap

To be a shareholder in Elkem, you need confidence in its ability to diversify beyond cyclical raw material markets and generate growth through specialty products and innovation. The recent launch of SILBIONE™ LSR Select EC 70 highlights this shift by targeting healthcare and wearable tech, but in the near term, weak ferrosilicon market conditions remain the company’s most important catalyst and risk, and this product launch does not materially change that equation.

The most relevant recent announcement is Elkem’s partial curtailment of ferrosilicon production in Norway and Iceland due to persistent demand weakness and pricing pressure in the European market. This operational move aligns with ongoing risks tied to lower margins and highlights the urgent need to offset volatility in traditional segments with higher-value materials, especially as near-term earnings remain under pressure.

By contrast, ongoing uncertainty around European trade policies and the effect on core material pricing is something investors should be aware of, as...

Read the full narrative on Elkem (it's free!)

Elkem's narrative projects NOK 43.2 billion revenue and NOK 2.0 billion earnings by 2028. This requires 36.6% yearly revenue growth and a NOK 1.3 billion earnings increase from current earnings of NOK 700 million.

Uncover how Elkem's forecasts yield a NOK29.80 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Fair value estimates from five Simply Wall St Community members span a wide NOK17.90 to NOK79.06 range, reflecting strong differences in opinion. Ongoing weakness in Elkem’s core ferrosilicon markets could weigh on operational performance, so it is worth exploring multiple views on value and risk.

Explore 5 other fair value estimates on Elkem - why the stock might be worth 33% less than the current price!

Build Your Own Elkem Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Elkem research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Elkem research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Elkem's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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