Lerøy Seafood Group reported first-quarter operating EBIT of NOK 858 million (€78.9 million), ahead of Arctic Securities’ estimate of NOK 827 million (€76.1 million) and consensus forecasts of NOK 833 million (€76.6 million).
Despite the earnings beat, Arctic Securities said weaker-than-expected value-added processing (VAP) results and deteriorating cost guidance in northern Norway weighed on the outlook.
Lerøy Aurora posted EBIT of NOK 168 million (€15.5 million), equivalent to NOK 20.3/kg, above Arctic’s estimate of NOK 147 million (€13.5 million). However, second-quarter cost guidance came in materially above the broker’s expectations. Arctic had forecast a sequential cost reduction of NOK 5/kg to NOK 59/kg, while Lerøy guided higher.
Arctic also highlighted a change in the company’s language around cost improvements. In its fourth-quarter 2025 report, Lerøy referred to “significant reductions from Q2/26”, but now says there is “potential for significant cost reductions in H2/26 if biological trends continue”.
Western Norway EBIT came in at NOK 87 million (€8.0 million), below Arctic’s NOK 108 million (€9.9 million) estimate. The broker said the expected cost improvement story appeared delayed, with second-quarter guidance implying a sequential improvement of NOK 7/kg.
The VAP, sales and distribution segment delivered EBIT of NOK 160 million (€14.7 million), below Arctic’s estimate of NOK 231 million (€21.3 million), with margins of 2.0%. Lerøy cited a stronger Norwegian krone, higher logistics costs and reduced access to high-end markets as factors weighing on performance.
The whitefish division partially offset weaker results elsewhere, reporting EBIT of NOK 228 million (€21.0 million), ahead of Arctic’s NOK 144 million (€13.2 million) estimate, supported by strong prices and improved land-based processing profitability.
Norskott Havbruk, which owns Scottish Sea Farms and is 50% owned by Lerøy, reported EBIT of NOK 7 million (€0.6 million), against Arctic’s estimate of NOK 107 million (€9.8 million). Harvest volumes totalled 5,391 tonnes, compared with expectations of around 10,000 tonnes.
Arctic Securities maintained its Hold recommendation and NOK 51 (€4.69) target price on the stock, and said it expects consensus estimates to fall by 2% to 4% following the report.
