Q2 2026 Icelandic Salmon AS Earnings Call Transcript
Key Points
- Harvested volume increased 37.5% year-over-year to 5,500 tonnes in Q2 2026, with average harvest weight of 6.2 kg head-on-gutted.
- EBIT improved significantly year-over-year, from negative EUR8.3 million in Q2 2025 to negative EUR3.2 million in Q2 2026.
- Biomass in sea was 19% higher at the end of Q2 2026 compared to Q2 2025, supporting improved capacity utilization and future harvest volumes.
- Cost-saving program implemented in Q3 2025 has delivered a yearly cost reduction of EUR5.5 million, with continued benefits expected.
- US tariffs on Icelandic salmon were reduced to 0% in July 2026, providing a competitive advantage and immediate positive impact on price achievement in the US market.
- Renewal of the 10,000-tonne maximum allowed biomass license in Arnarfjorour for another 16 years secures long-term operational capacity.
- Smolt production is now free of tox virus, which had previously caused major challenges, ensuring better biological control and production stability.
- Net interest-bearing debt decreased by EUR7 million to EUR124 million, with available liquidity of EUR46 million at quarter-end.
- Planned CapEx for 2026 is limited to EUR4.1 million, approximately one-third of projected depreciations, preserving cash flow.
- New direct flights from Iceland to China starting in October are expected to strengthen access to the Chinese market.
- Q2 2026 EBIT remained negative at EUR3.2 million, reflecting ongoing financial losses.
- Extraordinary expense of EUR2.2 million was incurred due to biological challenges on the spring 2024 generation, increasing costs.
- Low winter temperatures in the first half of Q2 negatively impacted biological performance, with some challenges persisting.
- Market prices decreased by EUR0.44 from Q1 to Q2 2026, though they were still higher year-over-year.
- The US market was slow in Q2 due to the 15% tariffs in place at that time, affecting sales volumes.
- Contract share remained low at 6% for the quarter, limiting price certainty.
- Uncertainty regarding the new aquaculture law and excessive industry-specific taxes in Iceland is hindering further growth and CapEx commitments.
- Smolt release guidance for 2026 was reduced from EUR5.4 million to EUR5.1 million, indicating production adjustments.
- Feed prices are expected to rise, which could pressure margins despite operational improvements.
- The risk assessment for the Isafjaroardjup license is still being finalized, with approval pending.
It's 9:00. So thank you, everyone, for taking time to watch this quarter 2 presentation for Icelandic Salmon. My name is Bjorn Hembre. And with me today, I have our CFO, Robert Robertson. After the presentation, there will be a Q&A session where you can ask questions by raising your hand or typing the questions in the chat of the meeting.
First, a brief overview of Icelandic Salmon. Icelandic Salmon AS is a company that is listed on the Euronext Growth market in Oslo and also on the NASDAQ First North market in Reykjavik. The company is the sole owner and parent company of Arnarlax ehf that performs all operational activities in the group.
We are presented through the value chain with our own smolt production with smolt capacity sufficient for 25,000 to 30,000 tonnes of harvested biomass. We have our farming operations in sea in three fjords in the Westfjords of Iceland with a maximum allowed biomass of 23,700 tonnes, and all our production in sea is ASC certified.
We also do our own harvesting in our harvest
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