This article first appeared on GuruFocus .
Release Date: February 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Salmon Evolution ASA ( FRA:60E ) is transitioning from a construction phase to a value creation phase with phase two nearing production.
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The company has a proven platform with stable biology and high-quality production, demonstrating repeatable performance.
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Phase two will increase capacity to 18,000 tons, significantly shifting the earnings profile by absorbing fixed costs and expanding margins.
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The company is well-positioned with a fully stocked farm and exposure to the spot market as the salmon market is expected to tighten.
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Phase two incorporates four years of operational experience, focusing on water quality and operational efficiency, promising better margins and lower risk.
Negative Points
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Salmon prices were weak throughout 2025, impacting financial results as the company sells exclusively in the spot market.
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The company experienced a negative EBITDA of 39 million for 2025 due to weak salmon prices.
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There are ramp-up costs associated with phase two, which will affect farming costs in the short term.
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The company is fully exposed to market fluctuations, which affected price realization in Q4.
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Despite operational improvements, the company ended 2025 with a negative EBITDA, reflecting the challenging market conditions.
Q & A Highlights
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Q: What is the reasoning behind the updated partnership model in Korea and what ambitions does Salmon Evolution have to scale outside Norway? A: Our primary focus is on Indrahare, maximizing the potential of phase one and delivering phase two as planned. While we have ambitions beyond Indrahare, we are concentrating our resources on fully operationalizing Indrahare. Phase three is particularly attractive due to existing infrastructure and permits. The updated partnership model in Korea allows us to stay involved and leverage our expertise without diverting focus from our core operations in Norway.
Q: What do you expect from phase two and how long will the ramp-up period be? A: We are excited to start operations in phase two, incorporating four years of learnings from phase one. We anticipate a quicker ramp-up for phase two, with five groups to be stocked this year. By the end of the year, all tanks should be operational, and we expect to reach full capacity in the first half of next year.
Q: How do you view the salmon market going forward? A: While 2025 saw high supply growth, we expect 2026 to be different with a potential tightening of the market. As supply growth decreases, prices are likely to recover sharply. With increasing volumes, we are well-positioned to benefit from this expected market recovery.
Q: What are your views on dividends, and do you have a dividend policy in place? A: Yes, we have a dividend policy available on our website. We are focused on operational improvements and increasing biomass growth, which will influence our future dividend decisions.
Q: What opportunities do you see for Salmon Evolution over the next 5 to 10 years? A: We see significant opportunities starting with Indrahare, particularly with phase three, which is a logical expansion due to existing infrastructure. We are also exploring other opportunities in Norway and internationally, including projects in Korea and North America. As we demonstrate our business model and financial performance, we anticipate numerous growth opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
