Lerøy Seafood Group (LSG) Q3 2025 earnings summary

Executive summary

• Revenue grew 11% year-over-year to NOK 8,755m, driven by higher harvest and sales volumes despite a significant drop in salmon and trout prices.

• Operational EBIT for the quarter was NOK 15m, down sharply from NOK 412m in Q4 2023, reflecting low spot prices and increased costs in Farming, partially offset by record VAP, Sales & Distribution earnings and improved Wild Catch results.

• Reported profit for the period was NOK 472m, up from a loss last year, mainly due to a positive non-cash fair value adjustment of biomass.

Financial highlights

• Operational EBITDA fell 39% year-over-year to NOK 498m, and operational EBIT margin dropped to 0.2% from 5.2% year-over-year.

• EPS before fair value adjustments was -0.34 NOK, compared to 0.62 NOK in Q3 2024.

• Net interest-bearing debt was NOK 8.09bn at quarter end, with an equity ratio of 49%.

• Cash flow from operations rose to NOK 1.08bn, up from NOK 920m last year.

• Dividend of NOK 2.5 per share paid in Q2 2025.

Outlook and guidance

• Harvest guidance for Norway in 2025 reiterated at 195,000 GWT, with total group guidance (including Scottish Seafarms) at 217,500 GWT for 2026.

• Cost per harvested kilo expected to decrease in 2026 due to lower feed costs, and VAP, Sales & Distribution segment is on track to reach an EBIT target of NOK 1.25bn for 2025.

• Investments in closed containment systems (Aquatraz C2) announced, with first fish planned for Q1 2027.

• Wild Catch segment faces further quota reductions in 2026, but quotas expected to increase from 2027.

• Challenging quota situation in Wild Catch, but price increases are offsetting lower volumes.