New Zealand King Salmon (NZK) H2 2025 earnings summary

Executive summary

• FY25 net profit after tax was $13.4 million, down from $28.5 million in FY24, impacted by non-cash fair value loss on biological assets and lower FX contract unwind contribution.

• Pro-Forma EBITDA reached a record $29.7 million, up from $24.5 million, driven by higher volumes and pricing.

• Revenue increased 13% year-over-year to $211 million, supported by increased biomass and market optimisation.

• Strategic focus remains on optimizing core earnings and executing growth, particularly through the Blue Endeavour project and government partnership.

• Balance sheet remains strong with net cash of ~$50 million, supporting ongoing and future investments.

Financial highlights

• GAAP net profit after tax: $13.4 million (down 53% year-over-year), impacted by $7.7 million fair value loss on biological assets and $4.3 million FX contract unwind.

• Pro-Forma EBITDA: $29.7 million, up 21% from $24.5 million, at the midpoint of guidance.

• Revenue reached a record $211 million, with volume sold up 12% to 6,582 MT and harvest volume up 9% to 6,778 MT.

• Pro-Forma gross profit margin improved to 28%; GAAP gross profit margin fell to 22%.

• Net cash on hand at year-end was just over $50 million, up from $24.2 million in FY24.

Outlook and guidance

• FY26 Pro-Forma EBITDA guidance is $15–24 million, reflecting reduced harvest due to elevated mortality and lower growth rates.

• Harvest forecast for FY26 is 5,900–6,300 MT, down from 6,800 MT in FY25.

• CapEx for FY26 is forecast at ~$21 million, with $12 million for Blue Endeavour pilot and $9 million for ongoing operations.

• Dividends remain on hold as Blue Endeavour is developed.

• Blue Endeavour open ocean farm to become operational on a pilot scale in FY26, with first fish transfer scheduled for October.