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Akva Group reported a robust financial performance in the third quarter of 2025, with a significant year-over-year revenue increase of 20% to NOK 1.1 billion. Despite the strong results, the company did not provide specific earnings per share (EPS) details. The stock remained stable at NOK 93.2, unchanged from the previous close, as investors digested the earnings report and awaited further guidance.
Key Takeaways
- Akva Group's Q3 revenue rose by 20% year-on-year.
- The company reported a Q3 EBITDA of NOK 148 million.
- Order intake for the quarter was NOK 786 million.
- The stock price remained stable post-earnings announcement.
Company Performance
Akva Group demonstrated strong performance in Q3 2025, marked by a substantial increase in revenue and solid earnings before interest, taxes, depreciation, and amortization (EBITDA). The company's strategic focus on innovation and expansion into new markets, such as Turkey, contributed to its impressive growth. Akva Group continues to lead in aquaculture technology, maintaining a strong market position with its diversified product offerings.
Financial Highlights
- Revenue: NOK 1.1 billion, up 20% year-on-year
- EBITDA: NOK 148 million
- EBIT: NOK 89 million
- Year-to-date revenue: NOK 3.3 billion
- Year-to-date EBITDA: NOK 406 million
- Year-to-date EBIT: NOK 236 million
- EBITDA Margin: 13.3% in Q3
- Order Backlog: NOK 2.4 billion
Outlook & Guidance
Looking ahead, Akva Group has set ambitious targets. The company aims to achieve a minimum revenue of NOK 4 billion in 2025, with an EBIT margin of 6% or higher. By 2027, Akva Group targets revenue of NOK 5 billion and an EBIT margin of 9%. The company expects a strong order intake in Q4 to support its growth trajectory into 2026, with detailed guidance for 2026 to be released in February.
Executive Commentary
CEO Knut emphasized the company's role in the aquaculture industry's future, stating, "We truly believe we are part of the solution. Our technology can provide growth and value creation." He highlighted the challenge of doubling salmon production by 2040, underlining Akva Group's commitment to innovation and sustainable growth. Knut also noted, "We are the only true global RAS supplier," reflecting the company's competitive advantage in the market.
Risks and Challenges
- Global salmon production faces challenges such as fish health, mortality, and regulatory constraints, which could impact growth.
- Market saturation and competition in the aquaculture technology sector could pressure margins.
- Macroeconomic factors and currency fluctuations may affect international operations and profitability.
- The company's reliance on technological innovation requires sustained investment and successful implementation.
Q&A
During the earnings call, analysts inquired about Akva Group's competitive strategy in post-smolt production and the development of deep farming technology. Executives clarified their approach to emerging closed system technologies, emphasizing the company's commitment to maintaining its leadership position in the industry.
Full transcript - Akva Group (AKVA) Q3 2025:
Moderator/Introducer, AKVA Group: Ladies and gentlemen, good morning and very much welcome to the Q3 presentation for AKVA Group. I will do the introduction and the highlights. Ronny Meinköhn, the CFO, will do the financial performance, and then followed by a Q&A session. Please post any questions you might have, and our moderator will read your question. The highlights for the third quarter: solid quarterly revenue of NOK 1.1 billion and EBIT of NOK 89 million. Just into the fourth quarter, early October, we were awarded the RAS contract from Tytlandsvik AKVA with an estimated contract value of NOK 220 million. Order intake is expected to be strong in Q4, providing a solid foundation for continued revenue growth into 2026. AKVA is confident to deliver on 2025 revenue and EBIT guidance of minimum NOK 4 billion and 6% respectively. Let's go straight to the numbers. Revenue for the quarter was NOK 1.1 billion.
EBITDA came in at NOK 148 million and EBIT at NOK 89 million. This is representing our best third quarter ever, and we are pleased with both the activity level and the financial performance. Year to date, revenue of NOK 3.3 billion, EBITDA of NOK 406 million, and EBIT of NOK 236 million. This is representing a 20% increase in revenue year on year and also our best financial performance ever. We are pleased with that. Let's look into order intake and order backlog. Order intake of NOK 786 million in total, which is on the soft side for Q3, about the level as a year ago. Please be aware that there is a seasonality in the order intake pattern. Saying that, we expect Q4 this quarter to be very strong, significantly stronger than the same quarter a year ago, which was NOK 1.1 billion.
That will secure a good momentum for continuous growth into 2026 versus 2025 then. This statement is based on actual sales we have seen now in October and the number of tenders being out there. That is the basis for our qualification of a strong order intake in Q4. Order backlog of NOK 2.4 billion, which is a reasonable level. I will spend some time, some minutes on the long-term SAM opportunity. This is a kind of executive summary of the capital market day we had back in June this year. First of all, a few words about AKVA Group. We are a technology innovator across multiple areas. We are the pioneer. We have been the first mover in many important areas. Starting in the 1980s with the automated feeding, which is kind of the DNA of AKVA Group.
More recently, over the last 8-10 years, the development and the first mover of the deep farming concept, where we have delivered more than 200 cages now till date. Over the last 30 years, we have been a pioneer and a mover, first mover within the smolt and the post-smolt segment, which is now proof of concept is very much there. That gave also birth to the land-based grow-out area, which is now happening first and foremost in China with the Nordic AKVA partner. Also, since the 1980s, we have been there with software and more recently more AI-based solutions. Moving more into the industry, salmon farming industry is at a crossroad. The graph and the numbers here are representing Atlantic salmons, the volume globally over the last 20 years or so.
It took three decades, 30 years to pass the first 1 million tonnes in 2001. Then another 10 years or so, a little more, 11 in 2012, to add another 1 million tonnes. Then slightly less than 10 years till 2021 to pass 3 million tonnes. This was followed by some years of stagnation. Why stagnation? There have been some industry barriers in recent years, which is about fish health, high mortality, regulations. We have seen growth constraints related to regulations and also the social license has been at stake. Even more, we have seen financial risk, first and foremost represented by the new resource tax as such. This has hindered some growth. Saying that, in 2025 we have seen some good growth of 9%. That is on the back of excellent biology.
Still, in 2026 we do not expect too much growth again, more flattish. The challenge is how to double salmon production by 2040. What we see is that the current business model is running out of capacity and new investments are required. What we like to see in this industry is a healthy growth. Probably a healthy growth is something like 5% because there is an underlying mega trend and growth for salmon consumption demand. 5% is representing a healthy growth because the market can handle that and you will have a healthy salmon price with that type of growth. If we can grow the market with around 5% year on year, that will take basically the challenge to double over the next 15 years. That cannot happen within the current production model.
New investments will be required, new investments in new technology, technology like deep farming, post-smolt, and also grow-out. That is to overcome the industry barriers, so to say. We have just illustrated some of the growth potential. Of course, it can happen in real life in a different way than this, but this is for illustration purposes. The starting point is that traditional sea-based farming currently produces around 3 million tonnes of Atlantic salmon globally. We believe that if we can scale deep farming over the next 15 years, that could add another 15% capacity by reducing lice, lowering mortality, and opening the social license to produce more. Furthermore, post-smolt holds the potential to add 30-35% to volumes. That is by improving biomass yield and reducing mortality. Land-based grow-out is beginning to gain traction with long-term potential of 500,000 tonnes or more.
Of course, other emerging technologies like offshore close containment is likely required also to support growth as such. Diving into deep farming, we see a potential to unlock 15% higher harvesting volume over the next 15 years or so. Submerged cages reduce the sea lice treatment by up to 85% and hence reducing mortality with relatively speaking limited additional investments. Proven improved fish welfare supporting social license. This is important because we think in addition to the effect from lower mortality, we think also there will be a positive impact of increased or greater social license enabling growth as well. This concept is currently applicable for close to 60% of the locations. We believe this is representing a $6 billion market. Using this opportunity also to give a short commercial update on deep farming, where we are right now.
As I mentioned, we have delivered more than 200 cages. Now just into October, we got our first commercial contract of deep farming to Turkey of NOK 45 million. The concept in Turkey is to produce trout in the Black Sea. The surface temperature is very high during the summer. The concept is to bring the fish 30-40 meters underneath to come to more ideal temperatures, enabling the industry to grow salmon throughout the summer months. This can be a breakthrough in Turkey. We also believe that talking Turkey for the bass production, also the temperature in the sea is too high in the summer now. We also believe that there is a business case for moving bass down in the deep. Back to Norway, we expect to sign contracts with several new customers during Q4.
Post-smolt, established as an industry growth strategy, it is bringing shorter production cycles down to seven, eight, nine months with reduced exposure in the sea. It's about fewer sea lice treatments, lower mortality, and increased biomass yield. We have strong documentation from the Faroe Islands and the Rogaland region. We see a potential based on those business cases here, Faroe and Rogaland, of unlocking 30-35% volume growth. Also here, a short commercial update. In addition to the new contract of NOK 220 million, we have reported early October. That's with Tytlandsvik. We also expect to close several new contracts over the next months to come. AKVA Group, we are the only true global RAS supplier. We have physical presence in Norway. We are the only one with the presence in Chile and the only one in China.
We have global project capabilities so we can drive projects, execute projects all over the world. We have invested a lot in land-based, actually around NOK 300 million in the last five years. We have 250 very competent people and we have a solid order backlog, which we expect to increase in the years to come. We are very well positioned for taking part of the expected growth. We have proven and documented technology. We have end-to-end project execution and we have advisory and services. With regards to land-based growth, land-based farming is beginning to mature. We saw 25,000 tonnes of production in 2024 after a decade with trial and errors. Several RAS and reuse facilities are now showing commercial validation. Nordic AKVA Partners in China is now delivering predictable and well-documented volumes of superior fish. Also here a small commercial update.
We are now working with other land-based projects than NOOAP. NOOAP is exciting still for us. It's our number one customer within this segment. We also expect in the future to deliver phase three for NOOAP. Now we are also busy with increasing the customer portfolio and it's getting more concrete now than before. We expect something to materialize over the next months. When it comes to digital, also here we have invested to create a globally leading digital platform within aquaculture. Over the last five years, we have invested as much as NOK 500 million. A majority or a bit more than half of that was acquiring the AI company Observe. The rest of the money went into further development of AKVA Fish Talk, AKVA Connect, and also the acquisition of AKVA Submerge. We are present in all the major SAM markets.
Our platform is based on, first of all, a complete platform. It's about biological control. There we have a 60% market share. That's Fishtalk to the left here. To the right, it is about control system between the barges and the pens, where we have more than 50% market share. In the midst, it's about short-term decision making using AI to support short-term decision making. Here, for instance, Observe is very, very instrumental. We are now the owner. We own Observe 100%. We have global presence. It's a truly scalable solution. We have around a bit more than 100 sites now. Also here a small commercial update. During Q4, we expect to add and contract another 70-80 sites on top of the more than 100 plus sites being there.
Q4 is expected to be a kind of breakthrough when it comes to the commercialization of Observe. Coming to the end, AKVA Group has the position as a global leader and trusted partner. We have the three platforms: sea-based, land-based, and digital. We bring improved fish health and welfare, higher growth, and higher value creation. We truly believe we are part of the solution. Our technology can provide growth and value creation as such. This is a graph just showing in the blue or black colors AKVA revenue over the last eight, nine years. In the orange graph, it is the development of the investments in fixed assets by the farmers. The investment level in the salmon farming industry increases by 12% annually over those years. That is significantly outpacing the harvest volume, which is more at 2.3%.
The AKVA Group revenue had overall also increased with the same 12% in line with the industry investments. Year to date, we are a bit higher. We are at 20% revenue growth year to date. Coming to the end, our strategic roadmap, which was presented during the capital market day in June. First of all, we like to confirm the 2025 guidance, which is a revenue of NOK 4 billion, a minimum NOK 4 billion, sorry, and an EBIT of 6% or higher. A new 2026 guidance is to be reported as part of the Q4 reporting, which will happen in February. In February, we will release the 2026 guidance. We have the 2027 target of NOK 5 billion and EBIT of 9%. Today we have a bit more information than in June when we issued this.
We just want to reiterate the 2027 target, which was reported during the capital market day. That brings me very much to the end. We will now move into the financial performance. Ronny Meinköhn, our CFO, will do the presentation. Please, Ronny. Thank you, Knut, and good morning to everyone. We are satisfied with the financial performance in this third quarter. As we told you when we did the Q2 presentation back in August, we expected Q3 to be a repeat of Q2, and that is exactly what happened. We had strong revenue in this third quarter, NOK 176 million higher than Q3 last year, and revenue year to date of NOK 3.3 billion is more than 20% higher than in 2024. We have demonstrated good growth in land-based and sea-based in 2025.
We are, of course, comfortable to deliver on our revenue guiding this year of NOK 4 billion. The profitability in the third quarter was strong. EBITDA of NOK 148 million is NOK 20 million higher than in Q3 last year. Year to date, EBITDA of NOK 406 million is more than NOK 100 million higher than in the same period last year, which is a strong increase of more than 30%. On EBIT, year to date, we have a margin of 7.2%, well above our guiding for the full year of minimum 6%. The net financial costs in the quarter was low at NOK 14 million, positively impacted by the NOK 10 million increase in market value on our investment in Nordic AKVA Partners. Overall, we are satisfied with our profit before tax of NOK 75 million in Q3 and NOK 177 million year to date.
For Q4, we expect a soft closing for the year, both with regards to revenue and profit due to the seasonality in our sea-based business. The book-to-bill ratio the last 12 months is a bit above 100%, with both order intake and revenue of NOK 4.1 billion. Book-to-bill ratio in the third quarter was somewhat soft at 71%. However, as stated by Knut, based on the momentum we see in the market, we expect a strong order intake in Q4, which will support continued revenue growth into 2026. Compared to Q3 last year, we see increased revenue in all our markets except Americas, with 22% increase in Nordic, 27% increase in Australasia, and 53% increase in Europe and Middle East. Sea-based business represented 69% of our total revenue in the quarter.
The increase in revenue is mainly related to land-based, which had 90% higher revenue in Q3 this year compared to a year ago. We delivered a strong EBITDA of 13.3% in Q3, in line with Q3 last year and a bit higher than in Q1 and Q2 earlier this year. We have a strong EBITDA margin of 14.7% in sea-based, which is supported by a sound product mix and also high activity, which provides economies of scale at our production facilities. For land-based, we continue to see improved profitability due to higher revenue and also improved project margins, with an EBITDA of 7.3% for the quarter. Available cash was reduced by NOK 31 million in the quarter and ended at NOK 442 million. The main reason for this reduction is due to the increase in net working capital of NOK 56 million from 9.4% in Q2 to 10.5% in Q3.
We expect some relief in the networking capital during Q4. The leverage ratio was increased from 2.3 to 2.62 in Q3. The reason for this increase is related to the observed gain of NOK 71 million recognized in Q3 2024 when we did the 100% acquisition of Observe Technologies. This gain is no longer included in the last 12 months' EBITDA. Still, our ratio of 2.62 is comforting compared to the threshold of 4.5. Net interest-bearing debt is increased by NOK 35 million in the quarter, driven by the increased networking capital of NOK 56 million. We have NOK 44 million in CapEx and also NOK 49 million in new IFRS 16 liability. Year to date, we have a reduction in net interest-bearing debt of NOK 94 million, which is driven by the net proceeds from the sale of our shares in Abus Group back in Q1.
Total CapEx of NOK 44 million, where close to 40% is related to our three innovation agendas, one for sea-based, land-based, and also one for digital. We have another NOK 7 million in CapEx related to rental products, meaning investments in products we are leasing out to our customers. Year to date, we have CapEx of NOK 118 million. The improved financial performance is also reflected on the return on capital employed, which increased from 7% in Q3 last year to 10.5% in Q3 this year, which is in line with our guiding. Dividend, we paid NOK 1 in April for the first half year, and we also paid another NOK 1 now, start of November, for the second half year. Of course, it is good to be in a position to distribute dividends again. The NOK 2 per share for 2025 is a record for AKVA Group.
Continue with some more details on the financial performance in our three business segments, and I will start with sea-based technology. Overall, revenue of NOK 770 million is NOK 30 million higher than Q3 last year, while order intake was somewhat lower of NOK 15 million compared to one year ago. Strong EBITDA margin of 14.7%, driven by a healthy product mix and also high activity, which provides economies of scale. On the regions, we see in Nordic, we have increased revenue of 3% in the quarter, reduced order intake of 12% compared to Q3 last year. In Americas, revenue was down by 14%, but we see a sharp increase in order intake of more than 100% compared to 2024. Last, Europe, Middle East, revenue increased by 64%, while order intake was down by 61%.
We see the 12-month revenue trend for sea-based is positive, and we also expect the 12-month order intake trend to turn positive in Q4 on the back of a very high tender activity in the market. Order backlog in sea-based, NOK 745 million, is NOK 35 million higher than Q3 last year. The OpEx-based revenue in sea-based is a very important part of our sea-based operations, and the revenue was somewhat lower in Q3 this year compared to last year. Overall, for the year, we are at NOK 826 million, which is a bit more than in 2024. For land-based, the order intake in Q3 was NOK 138 million and primarily related to the new contract for Laksey on Iceland of EUR 8.5 million. The revenue in the quarter was high, more than NOK 300 million, and a 90% increase compared to Q3 2024.
We had good activity and good progress on our project for NOOAP in China, as well as for other larger projects, both in Norway, Iceland, and also in Chile. EBITDA improved significantly by NOK 17 million in Q3 this year compared to last year and ended at 7.3%. The improved profitability is, of course, related to the higher revenue, which provides economies of scale, and also to improved project margins. The 12-month revenue trend for sea-based is really positive, and we also expect to see a positive shift in the 12-month order intake trend in Q4 due to the newly awarded RAS contract for Tytlandsvik AKVA of more than NOK 200 million. Order backlog in land-based is solid. It is just above NOK 1.4 billion, which is NOK 70 million lower than last year. Last, digital, with an order intake of NOK 28 million in Q3, same level as last year.
Revenue was also at the same level as in 2024. We see EBITDA margin improved from 31.9% to 36%. The trend, the 12-month revenue trend, is a flatliner. However, as Knut stated, we have secured some good sales now in Q4, and we expect to see a positive trend both with regards to revenue and also order intake in 2026. We have an order backlog of NOK 183 million for digital, which is NOK 36 million higher than one year ago. That was my financial update. I will hand it back to Knut now for the outlook and the Q&A. Thank you very much, Ronny. Outlook, we foresee a continued strong momentum for deep farming concept, as I already explained about. Continue to invest and improve our solutions across sea-based, land-based, and digital.
Once again, we are aiming for our revenue above NOK 4 billion this year and EBIT of 6% as such. We also expect a strong order intake in Q4 to support continued revenue growth in 2026. That brings us down to the Q&A session. We would like to open the Q&A session. We ask our moderator if there are any questions. We have one question from Mr. Henrik Knutsen in Pareto. How do you see the competition in post-smolt production from closed systems in sea? Yes. First of all, we see a good appreciation for the post-smolt concept as such. There are two ways of producing a post-smolt. You can do it in a RAS facility on land, and you can also do it in a closed containment in sea. I think the answer to the question is very much related to regulations.
We see an uptake in the interest for producing post-smolt in the sea very recently because of the new incentives related to the Miljøflex, sorry, for the Norwegian Miljøflex regulation. There is an incentive up to 30,000 ton there because you can get back some of the lost volume, net trek in Norwegian. That is attractive when you can have this growth without utilizing and using your current MAB. We think that is a fair opportunity for the farmers. However, in a more regular situation where you have to use out of your current MAB, we think that RAS on land is competitive. I think it is a question about regulation at the end of the day. Saying that, we see good tender activity on both smolt because there are still smolt facilities, regular smolt facilities to be built, and also post-smolt.
Even on the ongoing, we have some good activity. We are not worried for the next few years to come. We also have a question from Mr. Ola Trovatten, DNB. Do you expect a stronger order intake in sea-based Q4 2025 versus Q4 2024? Also, do you expect a similar revenue level and EBITDA margin for land-based in Q4 2025 versus Q3 2024? On the order intake first, we have said clearly that we expect a higher activity level for Q4 for AKVA Group in total. We also expect that to be the case for sea-based. Now I am talking order intake Q4. Ronny, you can comment on the expectation for land-based Q4. Yeah, we are of course pleased to see the progress in land-based with high activity level and also improved profit margins.
We expect more or less the same to happen in Q4 this year. Yes. Question from Karl-Emil Johannesen, Pareto. Are you working with any of the closed system providers or looking to develop your own system? As far as we have recognized, there are 22 different technologies available in the market. So far, we have had a strategy to monitor those emerging technologies. It is rather costly. It takes a lot of time, resources, and not at least money to develop each and one of the technologies. It is very hard to predict who will be the winner. One thing is for sure, it will not be all the 22. It might be probably two or three of them. There are some risks related to this kind of race. We have not been participating.
We have been focusing on further developing our RAS technology, deep farming, and other sea-based technologies, and also digital. That said, of course, we are monitoring what's going on. If we believe really there is a winner or two or three, our strategy is to partner with them. It could be a combination of a true partnership where we do the supply chain, scaling up production. We have the customer interface. We can do contract management. We can bring value to the table. We might also take equity tickets as part of a partnership. We have our ace open. Another question from Henrik Knutsen. You mentioned deep farming currently applicable for close to 60% of locations, but how many sites do you think it is very suitable for? We are now working with what we called deep farming next.
So far, we have had two generations of technology development. Last release was the new AirDoom, which made significant improvements to the farming operation. The next generation, which will probably be released next spring, is about easiness to operate and more robust mooring. More robust mooring will enable more possibilities, in particular in strong current. That will secure the 60% number. The easiness to operate is about a new winch system. Today, it is still relatively costly to operate deep farming when sometimes you have to take the fish up. It has to do, for instance, with a sea-lice treatment. There is still a need for sea-lice treatment in deep farming, whereby the frequency is far less than in conventional farming. There is still a need every now and then to bring up the site. That is a too big operation today.
Very often, a big service boat is involved. When I'm talking easiness to operate, the new winch system will enable the farmer to bring up the site, the deep farming installation, and bring it down again without using any service boat. We think that will open new market areas, open new markets, because there are other purposes and needs for deep farming rather than just avoiding the sea-lice treatment. It could be that for some months in the year, you like to go, let's say, 10 meters down because then you have a more optimal temperature. It could be 10, 20 meters. It could be that there are some algae coming in, and there are less of them in the deep, so you bring it down for some few weeks to await the algae to disappear. It could have something to do with oxygen, etc.
We also see for other species, as I mentioned, the trout example in the Black Sea, the bass example in the Middle Sea. We see more purposes, more areas where we can use deep farming. We think there is a market there for the years to come. Sorry for the long answer, but we think this is very exciting. Thank you. We have no more incoming questions. We'll give it another 10 seconds. If there are no more questions, thank you very much for your participation and have a nice weekend. Yes, thank you. Thank you.
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