Borregaard Asa Stock Earnings Reports

Borregaard reported a solid Q2 2026 with EBITDA of NOK 515 million, broadly in line with Q2 2025, supported by good operational performance and strong cash flow (operating cash flow NOK 695 million). Business highlights: BioSolutions grew volume (+4%) but faced a less favorable product mix and margin pressure; BioMaterials delivered record production and higher volumes (+9%) but lower average prices; Fine Chemicals showed strong volume and mix gains, notably in fine chemical intermediates and bioethanol. Cost headwinds from higher energy, logistics and chemical prices partially offset by ~15% lower wood costs; net currency effects were slightly positive. Borregaard recognized a NOK 337 million impairment on its investment in Alginor and will subscribe up to NOK 10 million of a proposed NOK 100 million equity injection, reducing its stake from 42% to 10% and removing further funding obligations. Management announced a cost improvement program targeting NOK 150 million in annual savings, phased in with full effect by 2028, including a hiring freeze and prioritization of activities. Outlook: BioSolutions 2026 volume guidance revised down slightly to ~335,000 tons (Q3 ~85,000 t); BioMaterials now expected to exceed 160,000 tons (Q3 ~40,000 t); Fine Chemicals volumes for intermediates expected up y/y while bioethanol deliveries down in H2. Wood costs for H2 2026 expected 3-4% lower than H1. Balance sheet remains strong (equity ratio 59%, leverage ~1.2), investments ongoing (Sarpsborg upgrades, debottlenecking), and management will host Capital Markets Day on 17 Sept.