This article first appeared on GuruFocus .
Release Date: August 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record strong biological performance with mortality 40% lower, growth 33% higher, and superior share 9 percentage points higher than the 10-year average.
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Increased 2026 harvest volume guidance by 20,000 tons to 350,000 tons, representing 16% growth year-over-year.
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Cost reductions are evident, with on-growth costs down 12% year-over-year and expectations of further declines in Q3 and Q4.
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Strong financial position with net interest-bearing debt reduced by NOK1.1 billion and leverage improved to 2.6x EBITDA.
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Acquisition of Msval expected to generate annual operational cost synergies of approximately NOK300 million.
Negative Points
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Unfavorable harvest profile with a significant share of volumes sold in June when market prices were at their lowest negatively impacted earnings.
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Outbreaks of ISA at two sites in Central Norway led to negative impacts on cost and price realization during the quarter.
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Weak results from Iceland and Scottish Sea Farms due to high costs throughout the value chain, with Iceland reporting negative EBIT per kilogram.
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Price achievement declined by approximately NOK10 per kilogram from Q1, reflecting lower salmon market prices.
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Feed price increases from Q4 onwards remain uncertain, posing a potential risk to future cost levels.
Q & A Highlights
Q: What are the key drivers behind SalMar's record biological performance and increased 2026 volume guidance? A: CEO Frode Arntsen highlighted that a cool and rainy summer created excellent growth conditions, contributing to record biological performance. Compared with the 10-year average, mortality is 40% lower, growth is 33% higher, and superior share is 9 percentage points higher. This strong performance, driven by genetics, smolt quality, vaccines, and production strategy, has led the company to increase its 2026 volume guidance for Norway by 20,000 tons to 307,000 tons, bringing total harvest volume to 350,000 tons, a 16% increase year-over-year.
Q: Can you elaborate on the cost reduction trends and how they will impact future earnings? A: CFO Ulrik Steinvik noted that cost per kilogram of standing biomass declined by 38% year-to-date, and on-growth costs are down 12% compared to the first half of last year. Approximately one-third of the cost reduction is attributed to feed, while two-thirds come from operational improvements. Importantly, these savings are embedded in standing biomass and will be recognized as fish harvested from sites stocked since 2025 enter the P&L, leading to lower costs released from stock in Q3 and further improvements in Q4.
Q: What is the strategic rationale and expected synergies from the acquisition of Msval? A: CEO Frode Arntsen explained that the acquisition of Heimst's 70% stake in Msval strengthens SalMar's position in Central Norway, one of its most important regions. Msval's footprint fits well with SalMar's existing operations across the value chain. The company estimates annual operational cost synergies of approximately NOK300 million, driven by optimized license utilization, improved biological performance, and reduced costs. The transaction is expected to complete before the beginning of 2027.
Q: How did the harvest profile and market prices affect Q2 earnings? A: CFO Ulrik Steinvik stated that while higher harvest volumes contributed positively by NOK479 million, price achievement had a negative impact of NOK740 million. This was due to lower salmon market prices and an unfavorable harvest profile, with the majority of volume harvested in June when prices were at their lowest. The average salmon price achievement declined by approximately NOK10 per kilogram from Q1, while sea salmon declined by NOK14 per kilogram.
Q: What is the outlook for harvest volumes and costs in the third quarter? A: CEO Frode Arntsen confirmed that biological performance remains very good, and the company expects both lower costs and significantly higher harvest volumes in Q3 compared with the corresponding quarter last year. In Central Norway, costs are expected to be lower in Q3 than Q2, while Northern Norway costs are expected to be broadly in line with Q2. The company also expects global supply growth to remain modest for the remainder of the year.
Q: Can you provide details on the performance of the SalMar Ocean segment and Ocean Farm 1? A: CEO Frode Arntsen reported that Ocean Farm 1 completed its harvest in May, delivering strong biological performance with low mortality, strong growth, and no sea lice treatments. The segment harvested 4,800 tons during Q2 with an operational EBITDA of NOK75 million (NOK15.7 per kilogram). The next production cycle will commence at the end of August/beginning of September, with approximately 5,000 tons expected to be harvested in Q2 2027.
Q: What were the main factors behind the weak results in Iceland and Scottish Sea Farms? A: CEO Frode Arntsen explained that Iceland's weak earnings (operational EBIT of minus NOK35 million) were due to high costs, which continue to be impacted by biological challenges experienced earlier in 2026, despite record harvest volumes and strong price achievement. Scottish Sea Farms harvested 8,100 tons with an operational EBIT of NOK8 million, as low harvest volumes negatively impacted costs throughout the value chain. However, both companies report positive biological status and expect significantly higher harvest volumes in the second half of 2026.
Q: How is SalMar addressing concerns about rising feed ingredient prices? A: CFO Ulrik Steinvik emphasized that while feed prices are important, the discussion is often too narrow. Feed costs are only part of the equation. New technology, improved competence, alternative raw materials, and operational efficiencies all contribute to future cost development. He stated that even with feed price rises, ongoing operational improvements are expected to largely compensate for those increases, as demonstrated by the fact that two-thirds of current cost reductions come from non-feed operational improvements.
Q: What is the company's financial position and how is it managing its debt and liquidity? A: CFO Ulrik Steinvik reported that net interest-bearing debt was reduced by NOK1.1 billion to NOK19.1 billion, with the leverage ratio improving to 2.6x. The company issued two new three-year bonds totaling NOK2.75 billion, repurchased NOK517 million of a maturing bond, and exercised extension options on bank facilities. Available liquidity amounted to NOK14.4 billion at quarter end, providing strong strategic flexibility to pursue growth opportunities like the Msval acquisition.
Q: Can you elaborate on the demand outlook and contract sales strategy? A: CEO Frode Arntsen stated that demand for salmon remains very strong, with customers viewing salmon as a strategically important product. The company has already started securing contracts for 2027 as customers want to ensure future access to supply. The contract share was 35% during Q2, expected to be around 25% in Q3, and approximately 35% for the full year 2026. Analysis indicates that most of the expected global volume growth for 2026 has already been materialized, which is positive for overall market dynamics.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
