Norway-based silicon material manufacturer REC Silicon reported revenue of $19.5 million in the first quarter (Q1) of 2026, down 8.9% from $21.4 million in the same period last year.

The company reported a diluted loss per share from total operations of $0.04, compared with a $0.06 loss in Q1 2025.

REC Silicon posted an earnings before interest, taxes, depreciation, and amortization (EBITDA) loss from continuing operations of $3.8 million, improving from an EBITDA loss of $4.9 million in Q1 2025.

The company recorded a net loss from total operations of $15 million during the quarter, compared with a net loss of $24.9 million in the prior-year period. Discontinued operations contributed a profit of $0.6 million.

Silicon gas production declined to 477 metric tons in Q1 2026 from 546 metric tons a year earlier, while silicon gas sales volumes fell to 515 metric tons from 560 metric tons in Q1 2025.

REC Silicon ended the quarter with a cash balance of $5.2 million and nominal net debt of $496.3 million.

During the quarter, the company finalized a $10 million short-term loan from Anchor AS, extended $220 million of debt facilities into 2027, and subsequently completed a fully underwritten rights issue that raised about $103 million in gross proceeds.

The company said proceeds from the rights issue are intended for repayment of advance payments tied to a long-term offtake agreement, repayment of debt facilities, and general corporate and working capital purposes. Following the transaction, Anchor AS holds approximately 93% of the company’s shares.

Management said Butte revenues declined slightly, both sequentially and year-over-year, due to lower silicon gas sales and lower polysilicon volumes. Butte EBITDA improved to $2.2 million from $1.2 million a year earlier, supported by lower input costs and operational improvements. The Moses Lake segment benefited from a one-time utility tax refund during the quarter.

REC Silicon confirmed there was no production at the Moses Lake facility during Q1 2026.

The company warned that it does not currently have sufficient available cash and committed financing to meet debt service and operating cash flow requirements over the next twelve months. It will require additional financing support from its largest shareholder or other sources.

Market conditions remained challenging during the quarter, with REC Silicon citing structural oversupply, pricing pressure, and delayed customer capacity ramp-ups across photovoltaic, flat panel display, and silicon anode battery markets.

Management said semiconductor-related demand remained relatively stable, supported by advanced logic production, selected memory applications, and AI-related infrastructure investments. However, demand in the photovoltaic and display markets remained pressured by oversupply, low utilization rates, low module prices, and cautious customer ordering patterns.

REC Silicon said the silicon anode battery market continues to develop, though commercial-scale production timelines have been delayed, limiting near-term demand growth.

Looking ahead, the company expects market conditions to remain difficult through the first half of 2026. REC Silicon said Q2 sales volumes are expected to remain broadly in line with recent trends. Management anticipates a gradual improvement in market conditions during the second half of the year as new semiconductor and solar manufacturing capacity ramps up, though the timing and pace of recovery remain uncertain.

REC Silicon posted a net loss of $63.1 million in 2025, narrowing 86.21% YoY from $457.4 million.