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Aker Biomarine AS (OB:AKBM) released its second quarter 2025 financial results on July 11, showing strong performance across its business segments with total revenue reaching $55.3 million, up 12% year-over-year. The company’s adjusted EBITDA jumped 41% to $13.6 million compared to the same period last year, continuing the positive momentum seen in previous quarters.
Quarterly Performance Highlights
Aker Biomarine delivered its strongest quarterly performance of the past year, with revenue growth accelerating from the 5% year-over-year increase reported in Q1 2025. The company’s adjusted EBITDA margin expanded to 24.6% in Q2 2025, up from 19.5% in the same period last year.
The quarterly results show a consistent upward trajectory in both revenue and profitability metrics over the past five quarters, demonstrating the company’s ability to execute its growth strategy.
As shown in the following chart of quarterly revenue and adjusted EBITDA:
"This marks our tenth consecutive quarter of year-over-year growth," said the company, building on the momentum highlighted in their Q1 2025 report. The sequential improvement from Q1 2025 ($50.8 million revenue) to Q2 2025 ($55.3 million) represents an 8.9% increase, while adjusted EBITDA grew by an impressive 51% sequentially from $9 million in Q1 to $13.6 million in Q2.
Segment Analysis
Human Health Ingredients
The Human Health Ingredients (HHI) segment was the standout performer, with revenues of $29.2 million, up 15% year-over-year. This segment achieved an adjusted EBITDA of $13.9 million, representing a 28% increase from Q2 2024 and an impressive 48% EBITDA margin.
The company attributed this strong performance to volume growth across all regions, particularly in China and APAC, improved price mix, and lower unit costs. Krill oil revenues specifically increased by 18%.
The segment’s performance is illustrated in the following chart:
A key strategic development for the HHI segment was securing an exclusive three-year commercialization agreement for Lysoveta in Southeast Asia with ABH Partners LLC, expanding the company’s market reach.
Consumer Health Products
The Consumer Health Products segment reported revenues of $27.1 million, up 9% year-over-year, with an adjusted EBITDA of $1.6 million (6% margin). The company noted that sales now follow market growth patterns after completing retail inventory adjustments.
Growth in this segment was primarily driven by Sam’s Club Multivitamin Gummies, UCII products, and expansion in Costco (NASDAQ:COST) Taiwan. The segment maintained a stable gross margin of 21% while improving EBITDA margin through effective cost control.
The following chart details the Consumer Health Products segment performance:
Emerging Business
The Emerging Business segment reported stable revenues of $2.1 million with an adjusted EBITDA of -$0.4 million, showing improvement from -$1.2 million in Q2 2024. The company has significantly reduced marketing investments while launching a second-generation Kori product.
The company noted that the sales process for Understory has been delayed due to market conditions, but the segment continues to move toward break-even performance.
Customer Diversification Strategy
Aker Biomarine has successfully reduced its dependency on single customers and markets, expanding its customer base from 284 in 2020 to 418 in 2025. This diversification strategy has helped the company achieve more balanced regional growth across Korea, China, EMEALA, APAC, and North America.
The following illustration demonstrates this strategic shift:
Financial Position and Working Capital
The company reported a net loss of $14.7 million for Q2 2025, despite the strong operational performance. Working capital decreased from $119 million in Q1 2025 to $107 million in Q2 2025, representing a positive development in the company’s capital efficiency.
Cash flow from operations was $3.8 million for the quarter, with total available liquidity of $26.4 million. The company’s net interest-bearing debt stood at $156 million, with a NIBD/Adjusted EBITDA ratio of 4.2x, improved from 4.8x in the previous quarter and 4.3x in Q2 2024.
Capital expenditures were primarily related to maintenance and upgrades at the Houston facility and capitalization of development costs, totaling $2.6 million in Q2 2025, down from $4.7 million in Q2 2024.
Outlook and Strategic Initiatives
Looking ahead, Aker Biomarine outlined its expectations for each business segment:
For Human Health Ingredients, the company expects continued growth and improved profits. The Consumer Health Products segment is anticipated to return to modest growth, while the Emerging Businesses segment will focus on reaching cash break-even and pursuing potential transactions.
The company has established a new underlying corporate cost level of $12-14 million, down from previous levels, as part of its ongoing restructuring efforts.
Aker Biomarine also presented a value creation plan highlighting potential earnings growth through operational leverage, volume expansion, price increases, product innovation, and platform leverage by expanding into new ingredients such as algae.
The company noted it is currently evaluating different mitigating actions to reduce potential tariff impacts, which could affect future performance.
Following the earnings presentation, Aker Biomarine’s stock price increased by 1.05% to 68.2 NOK, continuing the positive market reaction seen after the Q1 2025 results. The stock has traded between 42.3 NOK and 109.8 NOK over the past 52 weeks.
Full presentation:
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