Borregaard reports solid Q3 amidst production disruptions

Borregaard ASA reported EBITDA of NOK 440 million in Q3 2025, down from NOK 524 million in Q3 2024, on operating revenues of NOK 1,799 million (down from NOK 1,949 million). This reduction was primarily attributed to lower bioethanol prices and a NOK 40 million impact from a temporary disruption in cellulose production at the Sarpsborg site. Despite these headwinds, the BioSolutions segment saw increased results driven by sustained growth in agricultural sales, while BioMaterials experienced higher sales prices but lower volumes. Fine chemical intermediates delivered a strong performance, supported by positive net currency effects.

Profit before tax for the quarter was NOK 247 million, down from NOK 326 million in the prior year period, leading to earnings per share of NOK 1.96 (compared to NOK 2.51 in Q3 2024). Year-to-date, EBITDA stood at NOK 1,473 million on revenues of NOK 5,880 million, largely in line with 2024. The company's cash flow from operating activities was NOK 423 million in Q3 2025, an improvement from NOK 391 million in Q3 2024, positively impacted by a reduction in net working capital.

Borregaard is set to invest NOK 308 million in a second expansion phase at its Sarpsborg site, aiming for a 5-10% total capacity increase from both investment steps by H2 2026. This initiative will enhance production of lignin-based biopolymers, speciality cellulose, and bioethanol, while also reducing costs and environmental impact. Additionally, Borregaard will participate in a NOK 200 million convertible loan to Alginor, with its share ranging from NOK 83-111 million, supporting Alginor's commercial-scale demonstration plant for alginates.