Icelandic Salmon (ISLAX) Q2 2025 earnings summary

Executive summary

• Accelerated and early harvests due to a BKD outbreak in the 2023 generation led to higher volumes, increased mortality, and operational challenges, resulting in losses for the quarter.

• The company operates throughout the value chain, holds ASC and BRC certifications, and is present in global and domestic markets.

• Organizational restructuring and management changes were implemented, including new interim CFO and COO Biology, as part of a financial transformation program to improve flexibility and reduce costs.

• Extraordinary expenses of EUR 2.6 million were recognized due to biological issues in the 2023 generation.

Financial highlights

• Operational EBIT for Q2 was EUR -8.3 million, with EBIT per kilo at EUR -2.09; H1 2025 operational EBIT was EUR -11.3 million.

• Operating revenue for H1 2025 was EUR 35.5 million, down 5% year-over-year due to lower prices despite higher harvest volumes.

• Total assets increased by EUR 5 million to EUR 264 million; available liquidity at quarter-end was EUR 63 million.

• Net interest-bearing debt (excluding leasing) was EUR 98.3 million at 30/06/2025; including leasing, NIBD reached EUR 113.4 million.

• CapEx in the quarter was EUR 1.2 million, focused on seawater operations and the post-smolt facility.

Outlook and guidance

• Volume guidance for 2025 was reduced from 15,000 to 13,000 tonnes due to biological challenges and higher mortality.

• Cost levels are expected to decrease from Q4 2024 as higher-yield 2024 generation is harvested.

• Significant biomass increase is expected by year-end 2025, supporting higher volumes in 2026; 2026 volume guidance to be provided in Q3.

• Contract share is projected at 1% in Q3 and around 5% for the full year.

• Regulatory uncertainty remains due to pending aquaculture legislation and market risks from global supply and US tariffs.