Borregaard (BRG) Q4 2025 earnings summary

Executive summary

• Achieved all-time high full-year EBITDA of NOK 1,878 million, slightly above 2024, with strong cash flow and positive net FX impact, despite lower bioethanol prices and higher costs.

• Q4 EBITDA was NOK 405 million, up from NOK 398 million in Q4 2024, with revenues up 5% year-over-year and improved segment results.

• Board proposes a 12% higher dividend of NOK 4.75 per share, representing 55% of net earnings before impairments, with a new policy targeting 40–60% of net profit.

• Impairments totaling NOK 245 million on bio-based start-ups, mainly Alginor, impacted net profit.

• Strong operating cash flow: NOK 419 million in Q4, nearly NOK 1.4 billion for the year.

Financial highlights

• Full-year operating revenues increased 1% to NOK 7,713 million.

• Q4 EPS was NOK 1.64 excluding impairments (NOK -0.81 including); full-year EPS was NOK 8.67 ex. impairments.

• Net interest-bearing debt reduced by NOK 150 million to NOK 2,090 million; equity ratio at 60.8%.

• Q4 EBITDA margin was 22.1%, down 0.7 percentage points year-over-year; full-year margin at 24.3%.

• Return on capital employed at 15.7%, above target but below 2024.

Outlook and guidance

• BioSolutions 2026 sales volume expected at 340,000 tons, with continued agriculture growth.

• BioMaterials 2026 sales volume forecast at 155,000–160,000 tons; average sales prices in sales currency expected to decline 3–4% in H1 2026 vs. H2 2025.

• Bioethanol prices in Fine Chemicals expected to remain at 2025 levels; fine chemical intermediates volume to increase.

• Wood costs in H1 2026 expected to be 15% lower than H1 2025.

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