Strong Faroese performance lifts operational EBIT - improved market outlook
The Bakkafrost Group delivered a total operational EBIT of DKK 273 million (DKK 65 million) in Q2 2026
(Figures in parenthesis refer to the same period last year unless otherwise specified)
Strong biological performance, 67% higher harvest volumes and lower ring-side costs in the Faroe Islands drove the improvement. Scotland remained impacted by low harvest volumes and challenges in one batch of fish, while demand remained strong and the supply outlook for the second half of 2026 became more balanced.
The performance in Q2 2026 per region was as follows:
· Faroe Islands Revenues of DKK 1,613 million (1,144 million)
Operational EBIT of DKK 411 million (211 million)
· Scotland Revenues of DKK 213 million (431 million)
Operational EBIT of DKK -139 million (-146 million)
Commenting on the result, CEO Regin Jacobsen said:
Overall, we are satisfied with the clear improvement in operating performance in the second quarter. The Group delivered operational EBIT of DKK 273 million, compared with DKK 65 million in the same quarter last year. Cash flow from operations also improved significantly to DKK 273 million.
The result was driven by strong biological and operational performance in the Faroe Islands. Harvest volumes increased by 67%, average harvest weights remained high, and farming costs at site declined. This reflects the value of good biological control, disciplined operations and our integrated value chain.
The Faroese freshwater operations maintained high production and capacity utilisation, transferring 5.6 million large, high-quality smolt during the quarter. An important milestone was reached at the new hatchery in Skálavík, where the first eggs were introduced in June.
The salmon market remained challenging. Global supply increased by 7%, partly reflecting inventory movements, and salmon prices declined materially from the first quarter. Demand, however, remained solid across our main markets. With supply growth expected to slow materially in the second half of 2026, the market balance is expected to improve.
Exceptional inflation in feed raw material costs requires adjustments to sourcing and feed formulations. Our strong inventory position and integrated value chain give us greater flexibility to manage these conditions. They do not eliminate our exposure to raw material inflation, but they strengthen our ability to secure supply, adapt formulations and mitigate the impact.
We are not satisfied with the result in Scotland. Harvest volumes were substantially lower, and biological challenges affecting one batch of fish originating from externally sourced smolt had a significant impact on the result. Although these challenges were concentrated in this batch, biological performance at most other sites was stable.
Applecross continued to ramp up production, and the result from our Scottish freshwater operations improved year-on-year.
Our priorities remain unchanged: strengthen biological control, improve cost efficiency and restore stable production volumes in Scotland, while maintaining disciplined execution of our investment programme. We maintain our 2026 harvest guidance of 117,000 tonnes.
During Q2 2026, the FOF segment sourced 109,431 tonnes (159,951 tonnes) of raw material. The Operational EBIT margin was 20% (13%), and fish feed sales amounted to 37,386 tonnes (37,533 tonnes).
For H1 2026, the FOF segment's operational EBIT margin was 18% (13%). During H1 2026, Havsbrún sourced 160,630 tonnes (269,453 tonnes) of raw material.
In Q2 2026, the Freshwater segments in the Faroe Islands and Scotland transferred a total of 9.5 million (6.4 million) smolts combined:
· Freshwater FO: 5.6 million (5.4 million), · Freshwater SCT: 3.9 million (0.9 million).
For H1 2026, the freshwater segments have released a total of 14.4 million (10.1 million) smolts:
· Freshwater FO: 9.5 million (8.6 million), · Freshwater SCT: 4.9 million (1.5 million).
In Q2 2026, the Freshwater FO segment made an operational EBIT per kg transferred smolt of DKK 34.13 (DKK 33.80), corresponding to NOK 50.01 (NOK 52.88). The Freshwater SCT segment made an operational EBIT per kg transferred smolt of DKK -55.81 (DKK -464.58), corresponding to NOK -81.78 (NOK -726.77).
The Farming segments achieved higher prices in Q2 2026 than in Q2 2025. The Farming segments had higher volumes in Q2 2026 compared to Q2 2025. In Q2 2026, the Farming SCT segment had incident-based costs of DKK 31 million (DKK 39 million).
The total combined harvest in Q2 2026 of the farming segments in the Faroe Islands and Scotland was 29,894 tonnes gutted weight (23,054 tgw):
· Farming FO: 26,749 tgw (16,020 tgw), · Farming SCT: 3,145 tgw (7,034 tgw).
In H1 2026, the farming segments have harvested a total of 61,231 tonnes gutted weight (48,254 tgw):
· Farming FO: 51,888 tgw (34,934 tgw), · Farming SCT: 9,343 tgw (13,320 tgw).
In Q2 2026, the Farming FO segment made an operational EBIT per kg of DKK 4.06 (DKK 0.24), corresponding to NOK 5.96 (NOK 0.37). The Farming SCT segment made an operational EBIT per kg of DKK -44.26 (DKK -18.13), corresponding to NOK -64.85 (NOK -28.36).
The Services segment made an operational EBIT per kg of DKK 1.19 (DKK 0.74), corresponding to NOK 1.74 (NOK 1.16). The operational EBIT margin for the segment was 15% (8%).
The Sales & Other segment had a revenue of DKK 2,955 million (DKK 2,198 million) and an operational EBIT margin of 4% (4%). The operational EBIT per kg was DKK 3.82 (DKK 4.19), corresponding to NOK 5.60 (NOK 6.55).
The performance related to the Faroe Islands and Scotland as a region can be found in the Appendix.
The long-term goal of the Board of Directors is that 30-50% of earnings per share shall be paid out as a dividend. Bakkafrost's financial position is strong, with a solid balance sheet, a competitive operation, and available credit facilities. The Annual General Meeting convened on 30 April 2026 decided to pay out a dividend on DKK 3.45 (NOK 5.06). The total dividend of DKK 205 million (NOK 300 million) was paid out in May 2026.
OUTLOOK AND OPERATIONAL PERFORMANCE
Market
Increased supply in Q2 2026
The supply of salmon increased 6.7% in Q2 2026 compared to Q2 2025, including inventory movements. Without inventory movements, the supply increase was 3.3%, according to the latest estimate from Kontali Analyse.
Slightly lower salmon prices in Q2 2026
Salmon reference prices (in NOK) for 4-5kg superior salmon were 0.6% lower this quarter compared to Q2 2025. Compared to previous quarter (Q1 2026) prices were 15.7% lower in this quarter.
Tighter supply in H2 2026
In H2 2026, the global harvest is expected to decrease around 1%, compared to H2 2025. Including inventory movements, the global supply is expected to increase around 2% in H2 2026. For the full year 2026, the global supply is expected grow around 2-3%, excluding inventory movements and around 6% including inventory movements.
Bakkafrost has a strong focus on ensuring a well-balanced flow to the different markets to increase diversification and mitigate market risk. Bakkafrost operates in the main salmon markets, Europe, the USA, and the Far East. Since the beginning of the war in Ukraine, Bakkafrost has stopped all trading with Russia.
Operations
Farming Faroe Islands
The Faroese farming operations continued to deliver strong biological performance in Q2 2026. The biomass at sea remains strong and healthy, supported by robust fish health and stronger growth. Sea lice levels remain well managed through Bakkafrost's dual-freshwater treatment strategy.
The continued transition towards larger, high-quality smolt is contributing to shorter farming cycles and improved production efficiency. At the same time, more efficient management of fallow periods is supporting better utilisation of farming sites and further shortening the overall production cycle. These developments strengthen biological control and provide a solid foundation for continued operational performance and future harvest volumes.
Freshwater Faroe Islands
The Faroese freshwater operations continue to increase production and capacity utilisation across the hatcheries, supporting higher output of large, high -quality smolt and improved production efficiency.
Also, broodstock production capacity has been expanded, with further expansion ongoing. This will increase Bakkafrost's capacity to produce own eggs for internal use and strengthen control over the biological value chain.
Operations at the new hatchery in Skálavík have commenced, with the first eggs introduced in June 2026. The facility is being brought into production gradually, with the first output of smolt expected towards the end of 2027. Upon completion, the hatchery will increase total smolt production capacity in the Faroe Islands to approximately 24.4 million smolt at 500g, compared with the current capacity of around 18 million.
Farming Scotland
The operation in Scotland is affected by low harvest volumes in 2026, which is a result of the chosen de-risking strategy while the capacity to produce large, high-quality smolt is established. In the marine farming operation, biological performance in Q2 2026 was overall stable. Most farming sites developed well during the quarter, although biological challenges affected a specific batch of fish at the Sgian Dubh and Ardyne farming sites. The affected fish at these sites originated from the same batch of externally supplied smolt.
Bakkafrost remains focused on maintaining strong biological control and cost discipline across the Scottish operations. A central priority remains the continued transition towards large, high-quality smolt, which is expected to provide a stronger biological foundation through shorter marine production cycles, improved fish robustness and reduced biological risk.
The transformation of the biomass at sea will continue during 2026, with the benefits from the increasing share of large, high-quality smolt expected to become increasingly visible from 2027 onwards.
Freshwater Scotland
The ramp-up of the Scottish freshwater operation at Applecross continues, with focus on biological stability, operational predictability and consistent production of large, high-quality smolt.
Smolt stocking developed well during Q2 2026, and the operation remains on track to deliver the planned full-year smolt transfer target. The continued ramp-up at Applecross is an important element in building a stronger biological foundation for the Scottish marine farming operations.
In Q2 2026, the average weight of transferred smolt from Applecross in Scotland was 219g, which is 10% lower than in Q2 2025. The average smolt weight for all Bakkafrost's smolt release in Scotland in the quarter was 137g, which is 19% lower than in Q2 2025.
Services
Bakkafrost's freshwater dual-treatment service vessels continue to play a vital role in ensuring good fish welfare and efficient sea lice removal through freshwater treatments. As biomass grows, capacity utilisation of these vessels is increasing, supporting stronger biological control and operational efficiency across the marine farming operations.
The Group's large, rebuilt farming service vessels for smolt transport are securing efficient and fish-welfare-friendly smolt transfers in both the Faroe Islands and Scotland. The upgraded smolt transport systems strengthen operational reliability during transfer operations and support the continued development of robust farming platforms in both regions.
Smolt transfer
Bakkafrost's expected smolt transfer in 2026 in the Faroe Islands is around 20.0 million smolts with an average weight of around 440g. In Scotland, the smolt transfer in 2026 is expected to be around 10.0 million smolt with an average weight of 179g. This includes internally produced smolt as well as externally sourced. The number and average weight of smolts transferred are key elements of predicting Bakkafrost's future production.
Million smolt transferred '26e '25 '24 '23 '22 '21 FO 20.0 18.7 17.1 14.2 14.4 14.4 SCT 10.0 7.3 6.0 9.0 11.0 11.1 Avg. weight (g) FO 440 453 410 396 345 376 SCT 179 154 109 117 107 95
Harvest
In 2026, the harvest in the Faroe Islands is expected to be around 97,000 tonnes gutted weight. The expected harvest in Scotland is around 20,000 tonnes in Scotland, giving a total of around 117,000 tonnes gutted weight. The quarterly harvest profile is outlined in in the table below. Biological, environmental and market conditions can affect the expected harvest profile.
Expected harvest profile in 2026 as a % of total harvest pr. region:
Region Q1 Q2 Q3 Q4 FO 26% 28% 22% 24% SCT 31% 16% 19% 34%
The estimates for harvest volumes and smolt transfers in both geographies are dependent on biological development.
Sales & VAP (Value added products)
Bakkafrost's flexible value chain, including state-of-the-art VAP processing capacity, enables the Group to adapt to changes in market dynamics and other factors that may affect commercial risk. This flexibility supports balanced allocation between spot sales, contracts and value-added production.
For 2026, Bakkafrost intends to sign contracts covering approximately 15-25% of the expected combined harvest volumes in the Faroe Islands and Scotland.
FOF (Fishmeal, oil and feed)
The outlook of fishmeal and fish oil production is dependent on the availability of raw materials.
The ICES 2026 recommendation for blue whiting is 851 thousand tonnes, which represents a 41.2% decrease from the recommendation for 2025.
In 2026 Bakkafrost expects lower production volumes of fishmeal and fish oil as in 2026. Consequently, Bakkafrost expects lower external sale of fishmeal in 2026.
Feed raw material prices have increased, putting upward pressure on production costs. However, Bakkafrost has the flexibility to adapt feed formulations to changing market conditions. Its current fishmeal inventory is sufficient to support feed production into Q2 2027.
Bakkafrost increases the expected feed production from 165,000 tonnes to around 175,000 tonnes in 2026. Close to all of this will be sold internally to Bakkafrost's Faroese and Scottish Farming segments.
Investments
On the Capital Markets Day on 17-18 June 2025, Bakkafrost announced a 5.0bn DKK investment plan for 2026-2030. The main purpose is to reduce biological risk, improve efficiency and enable continued sustainable growth in the Faroe Islands and Scotland.
The investments in the Faroe Islands will increase the annual smolt production capacity to 24.4 million smolt of 500g. The feed production capacity and flexibility are also increased to further improve R&D capabilities and meet the growing demand for feed as harvest volumes increase in the Faroe Islands and Scotland. Also, investments in new farming sites and new farming technology are included, as well as investments to improve harvest capacity and flexibility.
In Scotland, planned investments include site expansions and optimisation as well as building a new harvest and processing facility to accommodate the growing harvest volume.
As a shared service to the Group, the investment plan includes building new dual -freshwater treatment vessels in the FSV segment.
Incorporated into the investment plan is also 245mDKK earmarked to energy transition, spread across the value chain.
With the investment plan, Bakkafrost expects to sustainably grow the total annual harvest volumes to 162,000 tonnes in 2030.
Since the announcement of the 2026-2030 investment plan on the CMD in 2025, Bakkafrost has decided to let some of the investments planned for 2025 rollover into 2026 due to the weak market outlook for 2025. Consequently, the timing of other investments in the announced 2026-2030 plan have been adjusted.
Financial The global salmon product market's long-term balance is likely to favour Bakkafrost. Bakkafrost has a long value chain and a cost-efficient production of high-quality salmon products and will likely maintain financial flexibility going forward.
In March 2022, Bakkafrost secured a 700 mEUR sustainability-linked credit facility (expandable by 150 mEUR) with a 5-year term and 2-year extension options which have been executed. This facility, along with Bakkafrost's strong equity ratio, bolsters the Group's financial strength for organic growth and cost reduction in Scotland, while also facilitating M&A and future organic growth opportunities, and upholding an unchanged dividend policy.
Please find the Company's Q2 2026 report and the Q2 2026 presentation enclosed.
Contacts:
· Regin Jacobsen, CEO of P/F Bakkafrost: +298 235001 (mobile) · Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 235060 (mobile)
This information is subject of the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
About Bakkafrost:
Bakkafrost is the largest salmon farmer in the Faroe Islands and the second -largest salmon farmer in Scotland. The Group is fully integrated from feed production to smolt, farming, VAP and sales. The Group has production of fishmeal, fish oil and salmon feed in the Faroe Islands and primary and secondary processing in the Faroe Islands, Scotland and Denmark. The Group operates sea farming and broodstock operations in both the Faroe Islands and Scotland. The Group has built a biogas plant in the Faroe Islands. The headquarter is located in the Faroe Islands, and the Group has sales and administration offices in Edinburgh (Scotland), Boulogne-Sur-Mer (France), New Jersey (US) and Munkebo (DK). The Bakkafrost Group has 1,686 employees (full -time equivalents).
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