Salmon Evolution Q2 2025 presentation: Harvest volumes more than double, biomass exceeds targets

Salmon Evolution (SALME) reported robust Q2 2025 operational results, with harvest volumes surging 112% quarter-over-quarter to 1,232 tonnes HOG and standing biomass reaching 3,043 tonnes LW, exceeding its target. The company achieved a 95% superior share and normalized biomass composition, indicating improved operational efficiency. These metrics, coupled with an all-in price realization of NOK 72/kg and an all-time high in production towards quarter-end, position SALME for increased harvest volumes and weights from Q3, supporting earlier projections for cost improvements and potential profitability following its Q1 EBITDA loss.

Analysis

Salmon Evolution's (SALME) Q2 2025 operational update showcases significant progress in scaling its land-based salmon farming operations, effectively de-risking its production model. The company reported a 112% quarter-over-quarter surge in harvest volume to 1,232 tonnes HOG, coupled with a high 95% superior share, indicating both volume growth and consistent product quality. Standing biomass at the end of the quarter reached 3,043 tonnes LW, exceeding the company's target range and providing strong visibility for future harvest increases. Critically, the biomass composition has now fully normalized, a key indicator of operational maturity and stability that supports more predictable production cycles. While the average harvest weight improved to 2.9 kg HOG from 2.3 kg in Q1, it remains below the Q4 2024 level, though the company guides for this to increase from Q3 onward. The reported all-in price realization of approximately NOK 72/kg, combined with the volume ramp-up, supports the company's outlook for materializing cost improvements in the second half of 2025 and moving towards profitability after a reported NOK 4.1 million operational EBITDA loss in Q1. This update validates the company's trajectory towards its annual harvest target of 5,800-6,200 tonnes, positioning it favorably ahead of its full financial report on August 19.

Key Decisions for Investors

• Given the strong operational momentum and de-risking demonstrated in the Q2 update, investors could interpret these results as reinforcing a bullish thesis, potentially justifying initiating or adding to positions before the full financial disclosure in August.
• Investors should closely monitor the full Q2 results on August 19 for detailed cost-per-kg metrics to confirm the guided cost improvements, as well as any upward revisions to harvest weight guidance, which are crucial for achieving profitability.
• While operational metrics are positive, it is important to track the realized price of NOK 72/kg against broader salmon market prices and to scrutinize progress on the Phase Two expansion, as successful execution remains key to the long-term investment case.