Salmon Evolution (SALME) Q4 2025 earnings summary

Executive summary

• Transitioning from construction and investment to commissioning, scale-up, and cash flow generation, with phase II at Indre Harøy progressing on schedule and first smolt release planned for week 17, targeting a 65% increase in smolt release for 2026.

• Strategic focus on disciplined execution, operational improvements, and maximizing output at Indre Harøy, aiming to enter 2026 with full biomass to capitalize on anticipated tight salmon market conditions.

• Updated partnership model in Korea shifts to technical advisory, reducing investment commitments and reinforcing focus on Norwegian operations and capital discipline.

• Proven operational platform with stable biology, high quality, and repeatable performance, positioning for industrial-scale land-based salmon farming.

• High supply growth in the market pressured salmon prices, negatively impacting financial results.

Financial highlights

• Q4 2025 operating revenues were 98.7 NOKm, down from 148.7–149.5 NOKm in Q4 2024.

• Group EBITDA was -8.4 NOKm in Q4 2025 and negative NOK 80 million for the year; farming EBITDA at -1.3 NOKm, with breakeven farming operations net of phase II ramp-up costs.

• Q4 harvest volumes were 1,200–1,203 tonnes HOG, with price realization at ~74 NOK/kg; annual price realization was NOK 70 per kilo.

• Cash flow from operations in Q4 was positive at 18.7 NOKm, supported by reduced working capital.

• Net interest-bearing debt increased to 1,757.4 NOKm due to phase II construction; equity ratio at 49% as of Q4 2025.

Outlook and guidance

• Phase II at Indre Harøy is on track, with first smolt release planned for week 17 and full ramp-up expected by early next year.

• 2026 full year harvest guidance set at 7,000 tonnes HOG, with ~1,800 tonnes HOG expected in Q1 2026 and a 65% year-on-year increase in smolt stocking targeting 2.8 million smolt.

• Run rate production expected to reach 14,000–15,000 tonnes gutted, with a target of 18,000 tonnes by year-end 2027.

• Targeting production cost of ~53 NOK/kg at full scale (18,000 tonnes HOG), leveraging fixed cost scalability.

• Anticipated market tightening and price recovery in 2026, positioning for improved earnings.