New Zealand King Salmon (NZK) H1 2025 earnings summary

Executive summary

• Net profit after tax for the first half was $6.0m, down from $10.6m year-over-year, impacted by non-cash biological asset adjustments and lower FX contract contributions.

• Pro-forma EBITDA rose 26% to $13.5m, with a rolling 12-month pro-forma EBITDA of $27.3m.

• Revenue increased 11% to $101.7m, driven by higher harvest volumes and price increases.

• Mortality tracked within expectations, with ongoing R&D investments in fish health, thermotolerance, and vaccine development.

• Blue Endeavour project progressing, with infrastructure ordered, pilot vessel under construction, and strong net cash position of $32.5m.

Financial highlights

• Net cash on hand was $32.5m, supporting ongoing investments.

• CapEx for FY25 (excluding Blue Endeavour) is forecast at $14m; Blue Endeavour pilot CapEx estimated at $9.6m for the year.

• GAAP gross margin fell to 24% from 30% due to fair value adjustments; pro-forma gross margin improved to 28% from 25%.

• COGS increased due to higher biomass and inflation in feed and labor costs.

• Corporate costs rose, reflecting investments in capability, compliance, and right-sizing post-mortality events.

Outlook and guidance

• Full-year pro-forma EBITDA guidance revised to $26m–$30m, with harvest forecast reduced to 6,800MT due to early runting.

• Management is optimistic for the second half, citing improved forecasting, sales confidence, and promising fish trials.

• Dividends remain on hold as focus stays on funding Blue Endeavour.