Borregaard (BRG) investor relations material

Executive summary

• EBITDA for Q3 2025 was NOK 440 million, down from NOK 524 million year-over-year, mainly due to lower bioethanol prices and a temporary cellulose production disruption at Sarpsborg, which had a NOK 40 million negative EBITDA impact.

• Operating revenues for Q3 2025 were NOK 1,799 million, down 8% from NOK 1,949 million in Q3 2024, with EPS at NOK 1.96, down from NOK 2.51.

• Biosolutions saw continued sales growth in agriculture, marking the seventh consecutive quarter of growth, while biomaterials and fine chemicals underperformed.

• Net currency effects were positive across all business areas, contributing NOK 30 million to EBITDA in Q3 2025.

• Board approved a NOK 308 million investment for the second phase of Sarpsborg site expansion, aiming for a 5–10% capacity increase by H2 2026.

Financial highlights

• Group EBITDA margin was 24.5% in Q3 2025, down from 26.9% in Q3 2024.

• Cash flow from operating activities was NOK 423 million, up from NOK 391 million year-over-year.

• Equity ratio stood at 59.9% at quarter-end, and leverage ratio (net debt/EBITDA) at 1.11.

• Net interest-bearing debt decreased to NOK 2,072 million.

• Return on capital employed (ROCE) was 15.8% in Q3 2025.

Outlook and guidance

• BioSolutions Q4 sales volume expected at 70,000–75,000 tonnes, below last year; anti-dumping duties on vanillin from China to have a limited positive effect.

• BioMaterials Q4 sales volume forecasted at 35,000–38,000 tonnes, with a higher share of specialized grades and stable average sales price.

• Fine Chemicals bioethanol prices to remain significantly lower; product mix expected weaker than Q3.

• Wood costs in Q4 to be slightly lower than last year; energy costs and annual maintenance at Sarpsborg expected to rise seasonally and impact production.

• Ongoing global economic uncertainty, tariffs, and conflicts may affect markets and costs.