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Introduction & Market Context
Salmon Evolution Holding AS (OB:SALME) reported challenging second-quarter 2025 results on August 19, with financial performance significantly impacted by weak salmon prices and temporarily higher farming costs. Despite these headwinds, the company achieved operational improvements with record biomass production and continued to make progress on its Phase 2 expansion, which remains on schedule for completion in early 2026.
The company’s stock closed at NOK 5.15 on August 18, down 0.58% ahead of the earnings presentation, and has traded between NOK 5.13 and NOK 7.15 over the past 52 weeks.
Quarterly Performance Highlights
Salmon Evolution reported Q2 2025 revenues of NOK 91.1 million after harvesting 1,232 tonnes HOG (head-on gutted), representing a significant decrease from NOK 170.5 million in Q2 2024. The company posted a negative farming EBITDA of NOK 13.2 million and a group EBITDA of negative NOK 25.6 million, compared to positive figures of NOK 58.6 million and NOK 45.4 million respectively in the same quarter last year.
As shown in the following chart of quarterly performance metrics, the company maintained a high superior grade share of 95% and improved harvest weights from 2.3 kg in Q1 to 2.9 kg in Q2, though these figures remain below the 3.8 kg achieved in Q4 2024:
The all-in price realization was approximately NOK 72/kg, significantly lower than the NOK 106.1/kg achieved in Q2 2024, reflecting the challenging market conditions. Farming costs also increased to NOK 81.2/kg in Q2 2025 from NOK 67.2/kg in Q2 2024, further pressuring margins.
Operational Improvements
Despite financial challenges, Salmon Evolution achieved notable operational improvements during the quarter. The company ended Q2 with a standing biomass of 3,043 tonnes LW (live weight), an all-time high, and delivered record underlying biomass production of 1,604 tonnes LW.
The following chart illustrates the continued improvement in operational performance, with consistent biomass growth despite challenging conditions:
The company also highlighted significant improvements in biomass composition, with 57% of biomass at the end of Q2 2025 exceeding 3 kg, compared to no biomass above 3 kg at the end of 2024. This normalization of biomass composition is expected to support better performance in coming quarters.
Salmon Evolution completed the harvest of underperforming groups affected by last year’s smolt quality issues during Q2, which should further improve operational metrics going forward. The company has secured overcapacity on smolt through 2025 and is planning pre-grow out tanks as part of Phase 2 to mitigate similar risks in the future.
Phase 2 Expansion Progress
A key focus of the presentation was the progress on the Phase 2 expansion at the Indre Harøy site, which remains on track for first smolt release in Q1 2026 and first harvest in Q4 2026. This expansion will increase production capacity by 128%, taking the company’s total capacity to 18,000 tonnes HOG (from the current 7,900 tonnes HOG in Phase 1).
The following image provides an overview of the Indre Harøy site and its phased development plan:
Construction is progressing according to plan, with 10 out of 12 fish tanks installed, building shells for 4 out of 6 technical buildings constructed, and ongoing process installations. Both intake pipes have been successfully installed, representing a major milestone in the project.
The company emphasized that Phase 2 will optimize production by introducing pre-grow-out tanks, yielding 14% increased output per phase. This will result in a 25% shorter grow-out cycle and reduced operational risk, with each batch’s share of annual harvest reduced from 17% to 6%.
Financial Position & Outlook
Salmon Evolution has strengthened its financial flexibility with a new credit facility of up to NOK 250 million and an increased overdraft facility from NOK 150 million to NOK 200 million. The company completed its first drawdown on construction facilities of NOK 1,450 million in early July.
The following chart illustrates the company’s available financial resources:
The company’s balance sheet showed total assets of NOK 3,428 million as of June 30, 2025, with an equity ratio of 61%, down from 70% at the end of 2024. Net interest-bearing debt increased to NOK 944 million from NOK 317 million at the end of 2024, reflecting the ongoing investments in Phase 2.
Salmon Evolution has updated its harvest guidance for 2025, somewhat reducing expected volumes while prioritizing maintaining full biomass at the end of 2025. This strategy aligns with market conditions and expectations of stronger salmon prices in 2026.
Looking ahead, the company expects significant improvements in the second half of 2025, with harvest volumes projected to increase by approximately 20%, biomass production by 30%, and target biomass by 50% by year-end compared to mid-2025 levels.
Management emphasized that global salmon supply is expected to tighten in 2026, which historically has led to price increases. With Phase 2 nearing completion and operational improvements continuing, Salmon Evolution is positioning itself to capitalize on this anticipated market recovery.
The company will release its Q3 2025 operational update in early October, with full quarterly results scheduled for November 11, 2025.
Full presentation:
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