Borregaard Q4 and Full‑Year 2025 Financial Performance
Overview of Fourth Quarter 2025
Borregaard reported solid operating performance in the fourth quarter of 2025, with operating revenues rising to NOK 1,833 million, compared with NOK 1,744 million in the same period of 2024. This growth reflects stable demand across several of the company’s business segments, combined with pricing improvements and favorable cost developments in selected areas.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter reached NOK 405 million, slightly higher than NOK 398 million recorded in the fourth quarter of the previous year. While overall profitability improved modestly, performance varied across Borregaard’s three core business areas: BioMaterials, BioSolutions, and Fine Chemicals. BioMaterials delivered stronger results year‑on‑year, whereas BioSolutions and Fine Chemicals experienced lower profitability compared with the fourth quarter of 2024.
Segment Performance in Q4
BioSolutions
Within the BioSolutions segment, Borregaard achieved high delivery volumes of biovanillin and continued to see growing sales to the agricultural sector. Despite these positive commercial trends, the segment’s overall financial result declined due to increased operating costs, which more than offset the benefits from higher volumes and market expansion.
BioMaterials
BioMaterials showed a notable improvement in profitability during the quarter. The segment benefited from higher sales prices and reduced costs for wood and energy, two key input factors in production. These favorable elements outweighed other cost increases, enabling BioMaterials to deliver a stronger contribution to group earnings compared with the same period in 2024.
Fine Chemicals
Performance in the Fine Chemicals segment was mixed. Lower sales prices for bioethanol negatively affected results; however, this impact was partly offset by strong earnings from fine chemical intermediates. As a result, the segment recorded a weaker year‑on‑year outcome, though underlying specialty chemical activities remained resilient.
Currency Effects
Net currency movements during the fourth quarter had a slightly positive overall effect on Borregaard’s financial performance, providing modest support to group profitability.
Impairments of Bio‑Based Start‑Ups
During the fourth quarter of 2025, Borregaard recognized total impairments of NOK 245 million related to its investments in three bio‑based start‑up companies: Alginor ASA, Kaffe Bueno ApS, and Lignovations GmbH. These write‑downs were made to reflect recent developments and revised expectations for the respective businesses.
The impairments were recorded within financial items, significantly affecting reported profitability for the period.
Profitability and Earnings in Q4
As a consequence of the impairment charges, profit before tax for the fourth quarter was negative NOK 28 million, compared with positive NOK 170 million in the same quarter of 2024.
Reported earnings per share (EPS) were negative NOK 0.81, down from NOK 1.30 a year earlier. However, when excluding the impairments related to the bio‑based start‑ups, underlying EPS would have been NOK 1.64, indicating that the core business remained profitable despite the accounting write‑downs.
Full‑Year 2025 Financial Results
Revenue and EBITDA Growth
For the full year 2025, Borregaard generated operating revenues of NOK 7,713 million, an increase from NOK 7,617 million in 2024. Annual EBITDA reached NOK 1,878 million, slightly above NOK 1,874 million in the previous year and representing an all‑time high for the company.
This record‑level EBITDA demonstrates Borregaard’s ability to maintain strong operational performance despite challenging market conditions, including cost pressures and volatility in certain product prices.
Segment Developments Over the Year
Across the full year:
- BioSolutions delivered improved financial results, supported by continued demand growth and product development.
- BioMaterials also achieved stronger profitability, reflecting pricing discipline and favorable input‑cost trends.
- Fine Chemicals, in contrast, experienced a decline in results, largely driven by weaker bioethanol pricing, though specialty intermediates continued to perform well.
Profit Before Tax and Earnings Per Share
For 2025 as a whole, profit before tax totaled NOK 864 million, compared with NOK 1,079 million in 2024. The decline was primarily influenced by impairment charges and changing market dynamics in selected product areas.
Reported earnings per share for the year were NOK 6.22, down from NOK 8.25 in the prior year. When excluding impairments related to the bio‑based start‑ups, adjusted EPS would have been NOK 8.67, highlighting the continued strength of Borregaard’s underlying operations.
Management Commentary and Outlook
Chief Executive Officer Tom Erik Foss‑Jacobsen expressed satisfaction with the company’s performance, emphasizing that Borregaard achieved another record‑high EBITDA in 2025. He noted that this result was driven by strong momentum across all business segments, even in the face of significantly lower bioethanol prices and rising operational costs.
Management’s comments underline Borregaard’s resilience, diversified product portfolio, and ability to generate value from bio‑based and specialty chemical solutions under varying market conditions.
SOURCE lINK : https://www.globenewswire.com/
