Bakkafrost (BAKKA) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue rose to DKK 1.847 billion, with operational EBIT at DKK 295 million and profit after tax of DKK 591 million, reflecting strong operational performance and higher harvest volumes in both the Faroe Islands and Scotland compared to last year.

• Harvest in the Faroe Islands increased 40% to 23,312 tonnes, and in Scotland by 19% to 4,579 tonnes, with the Faroe Islands showing particularly strong biological performance and low mortality.

• Cash flow from operations surged to DKK 447 million, and the board proposed a dividend of DKK 3.45 per share, maintaining a payout target of 30-50% of EPS.

• Achieved top ESG recognitions, including CDP A List and Corporate Knights Global 100, reflecting strong sustainability performance.

Financial highlights

• Operational EBITDA reached DKK 502 million in Q4 2025, up from DKK 465 million; profit for the period was DKK 591 million.

• Adjusted EPS for Q4 2025 was DKK 2.6, and for the full year DKK 9.9; basic and diluted EPS for Q4 2025 were DKK 9.97.

• Cash and cash equivalents stood at DKK 300 million, with an equity ratio of 58%.

• Net interest-bearing debt increased to DKK 3,897 million, with undrawn credit facilities of DKK 1,489 million at year-end.

• All-inclusive group margin was DKK 10.59/kg; Faroe Islands margin DKK 16.81/kg, Scotland negative at DKK -21.11/kg.

Outlook and guidance

• 2026 harvest guidance is 112,000 tonnes (92,000 Faroe Islands, 20,000 Scotland), with smolt transfers planned at 30 million and contract share at 15-20%.

• Feed production guidance increased to 165,000 tonnes, reflecting higher biomass and harvest expectations.

• Capital investment plan of DKK 5 billion over five years to support growth to 162,000 tonnes by 2030.

• Cost per kilo expected to remain stable or slightly decrease in 2026, with further cost reductions anticipated as Scottish operations ramp up.

• Some extraordinary mortality in Scotland expected in early 2026, similar to prior year.