Bakkafrost (BAKKA) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was DKK 1,686 million, down from DKK 1,737 million in Q3 2024, with operational EBIT dropping sharply to DKK 22 million from DKK 173 million year-over-year, impacted by lower salmon prices and biological challenges in Scotland.

• Harvest volumes increased in the Faroe Islands by 17.5% to 25,392 tgw, while Scotland's harvest remained stable at 5,286 tgw; total Q3 harvest was 30,678 tonnes, up 14%.

• Incident-based costs in Scotland, notably DKK 68 million in Q3 2025 due to disease-related mortality at Portree, significantly impacted results.

• Positive operational EBIT was recorded in Fishmeal, Oil & Feed, Freshwater Faroe Islands, Services, and Sales & Other segments.

• Major investments in feed and hatchery capacity continue, with a focus on cost reduction and operational improvements.

Financial highlights

• Group operational EBIT for Q3 2025 was DKK 22 million (Q3 2024: DKK 173 million); operational EBITDA was DKK 218 million (Q3 2024: DKK 355 million).

• Net profit for Q3 2025 was DKK 77 million (Q3 2024: DKK -116 million); YTD net loss was DKK -67 million (YTD 2024: DKK 168 million profit).

• Cash flow from operations in Q3 2025 was DKK 245 million, down from DKK 575 million in Q3 2024.

• Net investments totaled DKK 311 million in Q3 2025, mainly for capacity expansion; net interest-bearing debt increased to DKK 3,964 million.

• Equity ratio at end Q3 2025 was 57% (end 2024: 63%).

Outlook and guidance

• 2025 harvest guidance is 104,000 tonnes gutted weight (82,000 Faroe Islands, 22,000 Scotland); 2026 guidance is 112,000 tonnes (92,000 Faroe Islands, 20,000 Scotland).

• Global salmon supply growth is slowing, with 2025 supply growth estimated below 4% and flattening in 2026; no supply growth expected in Q4 2025.

• CAPEX of DKK 5.0bn planned for 2026-2030, targeting 162,000 t harvest volume by 2030, focusing on efficiency and biological risk reduction.

• Cost reduction remains a key focus, especially in Scotland, with further improvements expected as new facilities scale up.

• Smolt transfer in 2026 expected at 20 million (Faroe Islands) and 10 million (Scotland), with higher average weights.