SALME Q4 2025Extending the ocean potential

Farming Norway consists of the farming activities at the grow-out facility at Indre Harøy, smolt production at Salmon Evolution Dale and sales.

Salmon Evolution harvested 1,203 tonnes HOG in the quarter, with average harvest weights and superior grade share in line with Q3-25. This generated revenues of 98.7 NOKm (148.7 NOKm) reflecting the relatively weak salmon prices in the quarter, with average realized prices of 74 NOK/kg, down 10 % y/y. The all-in price realization reflects that harvest took place in October and November.

Due to overcapacity, Salmon Evolution sold a smolt Company during the quarter to a well-renowned sea-based farmer, generating revenues of 8.4m.

Operating expenses ended at 100.0 NOKm (133,4 NOKm), reflecting a 30 % lower harvest volume compared to the same quarter last year. The Company has started to take some costs in relation to the preparation and testing of the Indre Harøy phase 2 expansion. In relation to this the company has recorded capacity adjustments of 1.2 NOKm in Q4-25.

Farming EBITDA cost/kg ended at 72.6 NOK/kg in Q4-25, a significant improvement from Q3-25 where a ~8 % negative harvest deviation materially impacted costs.

Operational EBITDA in the Farming segment ended at -1.3 NOKm (15.3 NOKm), reflecting a lower harvest volume and weaker prices compared to the corresponding period last year. Adjusted for ramp-up costs in relation to phase 2 farming operations where breakeven in Q4.

Depreciations in Q4-25 ended at 16.1 NOKm, down 4.0 NOKm compared to the previous quarter. The reason for the decrease in depreciations is an update in the useful life estimates certain equipment at the Dale smolt facility. This update has been retroactively applied for 2025, normalized depreciations in Q4-25 excluding this one-off implementation effect of 3.8 NOKm were 19.9 NOKm.

Operational EBIT for Q4-25 ended at -17.4 NOKm including the above mentioned effect on depreciations.

In the Other segment all the resources related to projects and technology are employed, as well as general corporate functions. A significant portion of costs are related to future expansion.

In Q4-25 the Other segment recorded operating revenues of 11.6 NOKm (8.5 NOKm). Revenues in this segment are in all material respect related to sale of services to the Farming segment and growth projects – primarily the Indre Harøy phase 2 expansion.

The cost base in the segment is primarily salaries, representing around 65 % of operating costs. A portion of this is reinvoiced to the Farming segment for services rendered, as well as salaries relating to personnel taking part in the Indre Harøy phase 2 expansion project. The increase in revenues for the segment compared to previous quarters reflects an intensification of activities as phase 2 has entered testing and commissioning in preparation for the first smolt insert.

Operating expenses totaled 18.6 NOKm (14,5 NOKm), in line with the 2025 run-rate. Cash burn on growth projects outside phase 2 at Indre Harøy has been reduced to a minimum. Compared to 2024 underlying spend including capitalized costs has been significantly reduced, reflecting the strategic focus on phase 1 operations and phase 2 project execution.

The operational EBITDA ended at -7.1 NOKm (-6.1 NOKm).

The Company is the consolidated accounts of Salmon Evolution and consists of the Farming and Other segment.

Company revenues amounted to 98.7 NOKm (149.5 NOKm) in Q4-25, all related to sales of head-on gutted salmon and a smolt group.

Operating expenses totalled 107.1 NOKm (140.3 NOKm), reflecting a 30 % lower harvest volume compared to the same quarter last year. Operating expenses for the Company are in all material respect related to the Dale smolt facility and Indre Harøy grow-out facility, and other administrative expenses.

Operational EBITDA in the quarter ended at -8.4 NOKm (9.2 NOKm), reflecting a lower harvest volume and weaker prices compared to the corresponding period last year. Additionally, Salmon Evolution has taken some ramp-up costs related to phase 2 directly in the PL.

Depreciations in Q4-25 ended at 16.7 NOKm, down 4.2 NOKm compared to the previous quarter. The reason for the decrease in depreciations is an update in the useful life estimates certain equipment at the Dale smolt facility. This update has been retroactively applied for 2025, normalized depreciations in Q4-25 excluding this one-off implementation effect of 3.8 NOKm were 20.5 NOKm in the quarter.

The fair value adjustment amounted to 18.2 NOKm, driven by an increase in forward prices during the quarter. This left the operating loss at 7.0 NOKm.

Net financials for the quarter were positive at 8.1 NOKm (-5.1 NOKm). In the quarter the Company has reassessed its application of IAS 23 Borrowing cost and its effect on capitalization of borrowing cost related to financing of Indre Harøy with retroactive application for 2025, leading to more of the Companys interest cost being capitalized on the ongoing phase 2 expansion. See note 5 for further information.

The Company recorded no tax cost either in Q4-25, nor in 2025. For the period the result ended at 1.1 NOKm (negative 26.9 NOKm).

Salmon Evolution’s share of K Smart’s net income is recognized in the profit and loss statement. The investment in K Smart is accounted for by using the equity method where K Smart is considered an associated company.