Borregaard (BRG) investor relations material

Executive summary

• EBITDA for Q1 2026 was NOK 428 million, down from NOK 511 million in Q1 2025, mainly due to lower BioSolutions and BioMaterials results, partially offset by strong Fine Chemicals performance and lower wood costs.

• Operating revenues for Q1 2026 were NOK 2,036 million, reflecting a slight year-over-year increase from NOK 2,005 million in Q1 2025.

• Earnings per share fell to NOK 1.82 from NOK 2.52 year-over-year.

• Profit for the period was NOK 174 million, a 29% decrease from NOK 244 million in Q1 2025.

• Higher energy costs and general cost inflation were partly offset by lower wood costs.

Financial highlights

• EBITDA margin declined to 21.3% from 25.1% in Q1 2025.

• Cash flow from operating activities was NOK 77 million, down from NOK 129 million in Q1 2025, impacted by higher working capital and tax payments.

• Operating profit (EBIT) was NOK 276 million, compared to NOK 367 million in Q1 2025.

• Net interest-bearing debt increased by NOK 35 million in the quarter, reaching NOK 2,125 million.

• Total assets increased to NOK 10,146 million as of 31 March 2026.

Outlook and guidance

• BioSolutions sales volume for 2026 forecast at 340,000 tons; Q2 expected at 90,000 tons with a less favorable product mix.

• BioMaterials 2026 sales volume expected at 155,000–160,000 tons, with average prices 3–4% lower in H1 2026 versus H2 2025.

• Fine Chemicals bioethanol prices expected to be stable versus 2025; intermediates volume to increase.

• Wood costs in H1 2026 expected to be 15% lower than H1 2025; energy, logistics, and chemical costs to rise due to geopolitical tensions.

• Uncertainty from wars, conflicts, and tariffs is impacting markets, costs, and currencies.