Mowi ASA Earnings Call Signals Leaner, Stronger Growth

Mowi ASA ((MHGVY)) has held its Q4 earnings call. Read on for the main highlights of the call.

Mowi ASA’s latest earnings call carried a notably constructive tone despite industry headwinds. Management highlighted record volumes, lower costs, and solid profitability, while acknowledging softer 2025 prices, regional setbacks, and near-term cash absorption. Overall, investors heard a story of improving structural margins and disciplined growth rather than peak-cycle exuberance.

Strong Quarter with Solid Profitability

Mowi delivered Q4 operational EBIT of EUR 213 million on record operating revenues of EUR 1.59 billion. The performance showed that the group can generate attractive profits even in a year marked by weak salmon prices and uneven biological conditions.

Record and Rising Harvest Volumes

The company harvested 152,000 tonnes in Q4, slightly above guidance, and 559,000 tonnes for 2025, up 11.4% year over year. Farming guidance points to 605,000 tonnes in 2026 and at least 650,000 tonnes by 2029, underpinning a clear long-term growth trajectory.

Production Costs Moving Down

Weighted production cost fell to EUR 5.36 per kilo in Q4, a 5.8% reduction versus last year. Farming P&L costs were cut by EUR 176 million in 2025, strengthening Mowi’s cost base and competitiveness as it heads into 2026.

Norway Remains the Profit Engine

Mowi Norway posted Q4 operational profit of EUR 199 million with a margin of EUR 2.02 per kilo on 98,000 tonnes. Regions North and Mid stood out, delivering margins of EUR 2.61 and EUR 2.26 per kilo respectively, underscoring the strength of the core franchise.

Robust Full-Year Returns

For the year, Mowi reported operational EBITDA of EUR 949 million and operational profit of EUR 727 million. Underlying EPS reached EUR 0.92 and return on capital employed came in at 13.3% for 2025, rising to 15.5% in Q4 and above the firm’s 12% hurdle.

Feed Partnership to Unlock Further Savings

A new strategic feed partnership with Skretting and Nutreco is expected to generate at least EUR 55 million in annual savings for Mowi Farming. The company plans to keep earnings from its feed operations, with cash benefits starting in 2026 and P&L effects building from 2027.

Downstream and Feed Units Deliver

Consumer Products booked Q4 operational profit of EUR 46 million, its second-best fourth quarter, and EUR 197 million for the year on record 265,000 tonnes of sold volumes. The feed business added Q4 operational EBITDA of EUR 20 million and EUR 67 million for 2025, supported by 585,000 tonnes in sales.

Balance Sheet and Funding Remain Strong

Net interest-bearing debt stood at EUR 2.65 billion after consolidating Nova Sea, close to the new long-term target of EUR 2.70 billion. An equity ratio of 45% and the issuance of EUR 382 million in five-year green bonds at a tight spread reflect ample access to attractive long-term financing.

Cost-Saving Track Record and New Targets

The company has delivered EUR 392 million in total cost savings since 2018, including EUR 251 million in farming, with a realized P&L benefit of EUR 176 million in 2025. Management now targets an additional EUR 30 million in annualized savings in 2026 and plans to cut around 250 FTEs via automation and efficiency.

Market Set for Tighter Supply

After the 2025 supply surge, Mowi expects industry growth to slow sharply to about 1% in 2026. Longer term, management sees structural constraints holding global salmon supply growth to roughly 1–2% per year, potentially supporting firmer pricing than in the recent oversupplied market.

Soft Prices After 2025 Oversupply

The 12% jump in global salmon supply last year weighed heavily on prices through most of 2025. Although prices recovered toward year-end, the earlier weakness compressed margins across the value chain and framed the call’s cautious view on near-term pricing.

Canada Drags on Group Performance

Mowi Canada recorded a EUR 50 million loss in Q4, driven by a high cost base and lingering biological issues from previous quarters. While management said biology is now satisfactory, the region remains a notable drag compared with the group’s more profitable farming units.

Biological and Seasonal Challenges Elsewhere

Southern Norway saw gill and plankton problems in Q4 that hurt Regions West and South. Scotland also faced autumn biological challenges and harvested some high-cost sites, pushing up regional costs and demonstrating the operational volatility inherent in salmon farming.

Short-Term Supply Risks from Chile and Q1

Chile continues to show high short-term biomass, which is positive for volumes but tends to pressure prices. Management flagged that Q1 often brings surprise supply spikes, acknowledging that actual 2026 growth could deviate from the 1% central estimate.

Downstream Margins Facing Raw Material Squeeze

Management cautioned that a normalization of farming prices will eventually lift raw material costs for its Consumer Products business. The unusually strong downstream margins seen during the period of low input prices are expected to fade as higher costs work their way through to retail.

Iceland Still Sub-Scale and Costly

Mowi’s Iceland operations turned in a small positive contribution, but remain handicapped by limited scale. Management estimates a cost disadvantage of about EUR 0.5 per kilo versus larger operations, implying that more investment or regulatory change is needed to close the gap.

CapEx and Working Capital to Weigh on Cash

For 2026, the group flagged around EUR 400 million in capital expenditure and a EUR 200 million working capital tie-up tied to volume growth and Nova Sea integration. These commitments will temporarily constrain free cash flow despite improving underlying margins.

Tariffs and Macro Risks Cloud Demand

Management also pointed to trade and macro uncertainties that could temper demand, including tariff regimes and cost-of-living pressures. While certain markets like the U.S. have been supportive, these external factors remain swing variables for salmon consumption.

Forward Guidance Signals Growth and Efficiency

Mowi reaffirmed 2026 farming volume guidance of 605,000 tonnes and an organic target of at least 650,000 tonnes by 2029, with Norway aiming for 380,000 tonnes and a short-term ambition of 400,000 tonnes. Cost guidance centers on sustaining lower production costs, delivering the Skretting savings, extracting EUR 300–400 million in cost potential by 2029, and managing CapEx, working capital, and leverage within stated ranges.

Mowi’s earnings call painted a picture of a salmon producer emerging stronger from a challenging supply-driven downturn. While biological, regional and cash-flow headwinds persist, the combination of structural cost cuts, disciplined balance sheet management and measured volume growth positions the company as a resilient player for investors watching the seafood space.