SalMar shares rise as Q2 operating profit more than doubles and harvest guidance reaches 350,000 tonnes

SalMar ASA delivered a sharp second-quarter earnings recovery as record harvest volumes and better biological performance lifted operational EBIT to NOK1.24 billion, more than double the NOK524 million reported a year earlier. Group harvest volume increased to a second-quarter record of 81,800 tonnes from 64,500 tonnes, while revenue rose approximately 23% to NOK7.61 billion. Management responded by raising full-year 2026 harvest guidance another 20,000 tonnes to 350,000 tonnes, which would represent approximately 16% growth from 2025 when SalMar’s proportional share of Scottish Sea Farms is included. The Norwegian salmon producer is simultaneously preparing to spend approximately NOK3.4 billion for a 70% stake in Måsøval, giving the quarter a strategic dimension beyond the immediate improvement in farm biology and costs. SalMar shares closed August 25 at NOK544, up 2.64%, after reaching NOK550 during the session as investors responded positively to the earnings and higher volume outlook.

The results were not simply a product of higher salmon prices. In fact, management said lower market prices and an unfavorable harvesting profile reduced price achievement during Q2, with much of the quarter’s fish harvested in June. The earnings recovery instead came from producing substantially more fish, improving quality and reducing biological and operating costs, making the underlying farming performance the central reason profitability improved despite weaker pricing conditions.

That distinction matters for the second half. SalMar expects lower costs across the value chain in Q3 and significantly higher harvest volumes than a year earlier, while maintaining the view that global salmon supply growth should remain limited and demand strong.

Record harvest volumes drive a 136% increase in SalMar’s second-quarter operational EBIT

SalMar generated NOK7.61 billion of operating revenue in Q2, compared with NOK6.18 billion a year earlier, while operational EBIT climbed from NOK524 million to NOK1.24 billion. The approximately 136% earnings increase substantially exceeded the rate of revenue growth because farming economics improved alongside the 27% increase in harvested volume.

Group operational EBIT per kilogram consequently rose to NOK15.1 from NOK8.1 a year earlier. That remains below the much stronger NOK25.1 achieved during Q1 2026, illustrating how salmon pricing can still overwhelm improvements in production efficiency over shorter periods.

The quarter-to-quarter bridge makes that tension particularly clear. Higher volumes added approximately NOK479 million to operational EBIT compared with Q1, but weaker salmon pricing reduced earnings by roughly NOK740 million, leaving Q2 group operational EBIT NOK276 million below the previous quarter despite producing substantially more fish.

First-half figures provide a broader view of the improvement. Revenue rose 24% to NOK14.11 billion, operational EBITDA increased 70% to NOK3.81 billion and operational EBIT more than doubled to NOK2.75 billion from NOK1.32 billion. Adjusted earnings per share rose 127% to NOK9.8, while first-half harvest volume increased 33% to 142,100 tonnes.

The profitability gains are being driven primarily by Norway. SalMar reported NOK1.23 billion of operational EBIT from Norwegian operations during Q2 on 71,500 tonnes of harvest volume, equivalent to NOK17.2 per kilogram.

That performance represents a major improvement from the problems that affected Central Norway during 2025, when downgraded fish and weaker price achievement compressed margins. Management now describes survival rates, growth and the share of superior-quality fish as being at record levels in parts of the Norwegian operation.

Northern Norway outperforms as Central Norway volumes rise but price timing limits margins

Northern Norway was the strongest farming region during Q2. Revenue increased to NOK2.20 billion from NOK1.33 billion, operational EBIT more than doubled to NOK632 million and harvest volume rose to 32,600 tonnes from 20,600 tonnes.

Operational EBIT per kilogram in Northern Norway increased to NOK19.4 from NOK14.0. Management also raised full-year volume guidance for the region by 15,000 tonnes to 135,000 tonnes after strong biological performance and favorable cost development.

Central Norway produced significantly more fish but generated a lower margin. Harvest volume increased to 38,900 tonnes from 33,900 tonnes and operational EBIT surged to NOK426 million from only NOK7 million during the weak prior-year quarter, yet EBIT per kilogram remained at NOK10.9.

The difference partly reflects timing. SalMar harvested most of the Central Norway volume during June, when market prices were weaker, preventing the company from fully translating its biological improvement into price realization.

Management nevertheless increased Central Norway’s full-year volume guidance by 5,000 tonnes to 167,000 tonnes. Combined with the larger Northern Norway increase, the guidance revisions explain most of the 20,000-tonne increase in group expectations announced with the Q2 report.

Offshore farming also contributed positively. SalMar Ocean harvested 4,800 tonnes after strong biological performance at Ocean Farm 1, producing NOK45 million of operational EBIT compared with a NOK75 million loss a year earlier.

The next Ocean Farm 1 production cycle is expected to begin around August or September, with approximately 5,000 tonnes targeted for harvest during Q2 2027. That project remains strategically important because successful offshore farming could eventually allow SalMar to expand production beyond conventional coastal sites while using larger exposed-water locations.

Iceland and Scotland remain weak spots despite the stronger consolidated salmon farming performance

Not every part of the portfolio participated equally in the recovery. Icelandic Salmon recorded operational EBIT of negative NOK35 million on 5,500 tonnes of harvest, although that was substantially better than the NOK97 million operating loss reported a year earlier.

The segment’s operational EBIT remained negative NOK6.3 per kilogram because high costs continued to weigh on profitability following biological challenges earlier in 2026. Management expects lower costs in Q3 and has maintained full-year Icelandic harvest guidance at 21,000 tonnes.

Scottish Sea Farms, which SalMar owns through a 50% joint venture, also remained weak. The business generated only NOK8 million of operational EBIT on 8,100 tonnes, while fair-value adjustments contributed to a NOK268 million after-tax loss for the period.

These weaker operations matter because SalMar’s 350,000-tonne group guidance includes its proportional share of Scottish Sea Farms. Continued improvement in Norway can compensate for underperformance elsewhere, but sustained consolidated margin expansion ultimately becomes easier if Iceland and Scotland also normalize.

Sales & Industry presents another mixed comparison. Q2 operational EBIT was NOK219 million, below the NOK448 million recorded a year earlier, although management reported better performance than during Q1 as capacity utilization and operational metrics improved following upgrades at its InnovaMar processing facility.

Approximately 34% of Q2 sales were covered by physical or financial fixed-price contracts, which made a positive contribution. SalMar currently expects around 25% contract coverage in Q3 and approximately 35% for full-year 2026, providing some pricing protection while leaving much of production exposed to spot salmon markets.

NOK3.4 billion Måsøval acquisition could deepen SalMar’s position in Central Norway

The most important strategic transaction outside the quarterly operations is SalMar’s agreement to acquire approximately 70% of Måsøval for NOK3.4 billion. SalMar will purchase 85.7 million shares at NOK39.50 each, valuing Måsøval’s entire equity at approximately NOK4.84 billion.

Around 10% of the consideration will be paid through 733,906 newly issued SalMar shares, while the remainder will be paid in cash. SalMar has also committed to provide Måsøval’s remaining minority shareholders with an opportunity to realize their shares at the same NOK39.50 price following completion.

The industrial rationale centers on Central Norway, one of the world’s most productive salmon-farming regions and already a major SalMar operating base. Management expects the combination to improve utilization of biological resources, infrastructure and expertise while creating opportunities to coordinate production and processing across a larger regional footprint.

The transaction remains subject to regulatory approvals and customary closing conditions, making clearance the principal near-term acquisition risk. Integration becomes the next challenge if the deal closes, particularly because salmon farming performance depends heavily on biology, site management and local operating discipline rather than financial consolidation alone.

SalMar appears to have sufficient financial capacity for the transaction. Net interest-bearing debt fell to NOK19.14 billion at June 30 from NOK20.29 billion three months earlier, while net debt to EBITDA declined to 2.6 times from 3.1 times.

Available liquidity reached NOK14.4 billion, and SalMar retains an investment-grade BBB issuer rating with a stable outlook from Nordic Credit Rating. The company also issued NOK2.75 billion of three-year green bonds in June, broadening the financing base ahead of its strategic investments.

Higher harvest guidance shifts the investment debate toward salmon prices and cost sustainability

SalMar now expects 350,000 tonnes of harvest volume during 2026 including its proportional Scottish Sea Farms contribution, up 20,000 tonnes from the previous forecast. The revised guidance implies approximately 16% annual growth and follows an earlier 12,000-tonne increase announced after Q1, showing biological conditions have consistently exceeded management’s original expectations this year.

The cost trend is equally important. SalMar reported that the cost per kilogram of standing biomass in Norway has fallen around 11% year over year, while ongrowth costs have declined approximately 12%, with biological improvements, operating optimization and feed strategy all contributing.

Feed raw-material prices are expected to rise, but management believes much of that pressure can be offset through its purchasing strategy and continuing efficiency improvements. If that proves accurate, stronger volumes could translate into more durable earnings growth even without a major recovery in salmon prices.

Pricing remains the largest external swing factor. Q2 demonstrated that a NOK740 million negative price effect could outweigh substantial volume benefits compared with the prior quarter, so strong biology alone cannot eliminate commodity exposure.

Management’s expectation of low global salmon supply growth and continued strong demand provides a constructive backdrop, but seafood prices remain sensitive to seasonal supply, retail demand, currency movements and competing protein prices. SalMar’s improving biological position therefore gives the company greater control over costs and volumes, while market pricing remains largely outside management’s control.

The August 25 stock move suggests investors currently view that balance favorably. SalMar closed at NOK544, up 2.64%, after trading as high as NOK550, extending a recent recovery from roughly NOK510 in mid-August.

The next test will be whether Q3 delivers the combination management is forecasting: higher year-over-year volume and lower costs. If salmon prices stabilize at the same time, the operating leverage visible in the first half could continue into the second half while the Måsøval transaction adds another potential source of longer-term scale.

Key takeaways from SalMar’s record Q2 harvest, higher guidance and Måsøval acquisition

• Q2 operational EBIT rose 136% to NOK1.24 billion as record harvest volumes and better biology more than offset weaker salmon pricing.
• Harvest volume reached a second-quarter record 81,800 tonnes, up about 27% year over year and providing the principal volume engine behind the earnings recovery.
• SalMar raised 2026 harvest guidance by 20,000 tonnes to 350,000 tonnes, implying approximately 16% growth from 2025 including its share of Scottish Sea Farms.
• Lower salmon prices reduced Q2 operational EBIT by roughly NOK740 million versus Q1, showing commodity pricing remains the largest external constraint on profitability.
• Northern Norway delivered NOK632 million of operational EBIT and NOK19.4 per kilogram, making it SalMar’s strongest major farming region during the quarter.
• Central Norway EBIT recovered to NOK426 million from only NOK7 million last year, although June-heavy harvesting limited price realization despite stronger fish quality.
• Icelandic Salmon and Scottish Sea Farms remain the main operational weaknesses, making continued cost improvement outside Norway important to broader margin expansion.
• SalMar’s NOK3.4 billion purchase of 70% of Måsøval would deepen its Central Norway position and create opportunities to share infrastructure, resources and operating expertise.
• Net interest-bearing debt fell to NOK19.14 billion and leverage declined to 2.6 times EBITDA, while NOK14.4 billion of liquidity provides substantial capacity for the Måsøval transaction.
• SalMar shares closed 2.64% higher at NOK544, signaling a positive market response to higher volume guidance, stronger biological performance and improving financial leverage.