Borregaard Delivers All-Time High EBITDA in 2025; Proposes Higher Dividend Despite Q4 Impairments

Sarpsborg, Norway – Borregaard ASA reported solid operational performance in the fourth quarter and full year 2025, delivering an all-time high EBITDA of NOK 1,878 million for the year, supported by strong results in BioSolutions and BioMaterials.

Fourth-quarter operating revenues increased to NOK 1,833 million, while EBITDA reached NOK 405 million, broadly in line with the prior year. Strong deliveries of biovanillin and sustained growth in agriculture applications were partially offset by cost inflation and lower bioethanol prices.

For the full year 2025, operating revenues rose to NOK 7,713 million, with BioSolutions and BioMaterials both reporting improved results. BioSolutions benefited from strong agricultural demand and higher biovanillin sales, while BioMaterials saw higher prices, improved product mix, and lower energy costs.

Net profit for the fourth quarter was negatively impacted by impairments of NOK 245 million related to bio-based start-ups, primarily Borregaard’s investment in Alginor ASA. Excluding these impairments, underlying profitability remained robust.

Borregaard generated strong operating cash flow of NOK 1,356 million in 2025 and reduced net interest-bearing debt to NOK 2,090 million, strengthening the balance sheet with an equity ratio of 60.8%.

Reflecting confidence in long-term cash generation, the Board proposes an ordinary dividend of NOK 4.75 per share, up 12% year-on-year, corresponding to approximately NOK 474 million in total dividend distribution.

Looking ahead to 2026, Borregaard expects continued strong demand in BioSolutions, stable bioethanol pricing, lower wood costs, and disciplined capital allocation, while monitoring risks related to global trade tensions and regulatory developments.

Key Extracted Updates & Material Information

Financial Performance

• Q4 2025 EBITDA: NOK 405 million (Q4 2024: NOK 398 million)

• FY 2025 EBITDA: NOK 1,878 million (all-time high)

• FY 2025 Operating Revenues: NOK 7,713 million

• FY 2025 EPS: NOK 6.22

• FY 2025 EPS (ex-impairments): NOK 8.67

• Operating Cash Flow 2025: NOK 1,356 million

Business Area Highlights

BioSolutions

• All-time high EBITDA of NOK 1,209 million in 2025

• Strong growth in agriculture and biovanillin

• EU re-authorisation of lignin for animal feed supports future growth

BioMaterials

• EBITDA increased to NOK 495 million in 2025

• Higher prices, improved product mix, and lower energy costs

• Construction segment pressured by Chinese competition

Fine Chemicals

• EBITDA declined to NOK 174 million in 2025

• Lower bioethanol prices offset partly by strong fine chemical intermediates

Capital Expenditure & Investments

• Total investments 2025: NOK 925 million

  • Replacement capex: NOK 576 million

    • Includes electricity transformation upgrades and air preheater installation at Sarpsborg

  • Expansion investments: NOK 349 million

    • Capacity expansion at Sarpsborg

    • Specialisation projects in BioSolutions

    • Capital injections into bio-based start-ups (Alginor)

Impairments / Start-ups

• Total impairment: NOK 245 million

  • Alginor ASA: NOK 225 million impairment due to project delays and higher capital needs

  • Kaffe Bueno ApS & Lignovations GmbH: NOK 20 million combined

• Borregaard continues to support Alginor via a convertible loan, with further participation planned in February 2026

Dividend

• Proposed dividend (2025): NOK 4.75 per share

• Payout ratio: ~55% of net profit excluding impairments

• Total estimated payout: ~NOK 474 million

• YoY increase: +12%

Balance Sheet & Liquidity

• Net interest-bearing debt: NOK 2,090 million (down NOK 150 million YoY)

• Equity ratio: 60.8%

• Leverage ratio: 1.11 (within target range)

Regulatory / Legal

• US anti-dumping case on speciality cellulose:

  • Preliminary decision expected May 2026

  • Final decision expected late 2026

  • Potential retroactive duties (90 days)

Outlook & Forward Plans (2026)

• BioSolutions:

  • Sales volume ~340,000 tonnes

  • Continued strong agriculture demand

• BioMaterials:

  • Sales volume 155–160,000 tonnes

  • Average prices expected 3–4% lower (mix effect)

• Fine Chemicals:

  • Bioethanol prices broadly stable

  • Higher volumes for fine chemical intermediates

• Costs:

  • Wood costs expected ~15% lower in H1 2026 vs H1 2025

• Risks:

  • Tariffs, geopolitical conflict, regulatory uncertainty