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Borregaard Interim / Quarterly Report 2025
3562_rns_2026-02-04_1e56e946-7af4-47ed-8e4e-79c7cb431b91.pdf
Interim / Quarterly Report
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4 TH QUARTER IN BRIEF
- EBITDA 1 NOK 405 million (NOK 398 million) 2
- BioSolutions: High biovanillin deliveries and sustained growth in sales to agriculture
-
BioMaterials: Increased speciality cellulose sales prices and volume
-
Strong result for fine chemical intermediates Lower bioethanol sales prices Reduced wood and energy costs, increase in other costs
- Impairment of bio-based start-ups
- Strong cash flow
CONTENTS
| The Group |
3 |
|---|---|
| Business Areas |
5 |
| Foreign Exchange And Hedging | 9 |
| Cash Flow And Financial Situation |
9 |
| Dividend |
10 |
| Sustainability | 10 |
| Share Information | 11 |
| Other Matters And Subsequent Events | 11 |
| Outlook | 13 |
| The Group's Interim Condensed Financial Statements |
14 |
| Alternative Performance Measures | 24 |
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THE GROUP
| 1.10-31.12 | 1.1-31.12 | ||||
|---|---|---|---|---|---|
| Amounts in NOK million | Note | 2025 | 2024 | 2025 | 2024 |
| Operating revenues | 2 | 1,833 | 1,744 | 7,713 | 7,617 |
| EBITDA1 | 405 | 398 | 1,878 | 1,874 | |
| Operating profit | 249 | 216 | 1,287 | 1,283 | |
| Profit/loss before taxes | 2 | -28 | 170 | 864 | 1,079 |
| Earnings per share (NOK) | -0.81 | 1.30 | 6.22 | 8.25 | |
| Net interest-bearing debt¹ | 11 | 2,090 | 2,240 | 2,090 | 2,240 |
| Equity ratio¹ (%) | 60.8 | 53.1 | 60.8 | 53.1 | |
| Leverage ratio¹ | 1.11 | 1.20 | 1.11 | 1.20 | |
| Return on capital employed¹ (%) | 15.7 | 17.1 | 15.7 | 17.1 | |
1
1 Alternative Performance Measures, see page 24 for definition.
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FOURTH QUARTER
Operating revenues increased to NOK 1,833 million (NOK 1,744 million) in the 4th quarter of 2025. EBITDA1 was NOK 405 million (NOK 398 million). The result in BioMaterials increased, while BioSolutions and Fine Chemicals had lower results compared with the 4th quarter of 2024.
In BioSolutions, high deliveries of biovanillin and sustained growth in sales to agriculture were more than offset by increased costs. For BioMaterials, higher sales prices and lower wood and energy costs, more than compensated for other cost increases. In Fine Chemicals, lower bioethanol sales prices were partly mitigated by a strong result for fine chemical intermediates. Net currency effects were slightly positive for the Group.
Operating profit was NOK 249 million (NOK 216 million). Net financial items were NOK -277 million (NOK -46 million). Net financial items include a total impairment of bio-based startups of NOK 245 million, of which NOK 225 million relates to Borregaard's ownership in Alginor. (See Other matters and subsequent events).
Profit before tax was NOK -28 million (NOK 170 million). The tax expense was NOK -57 million (NOK -34 million). The tax rate was impacted by the impairments of bio-based start-ups (see Note 14).
Earnings per share were NOK -0.81 (NOK 1.30). Excluding impairments of bio-based start-ups, earnings per share were NOK 1.64.
The cash flow from operating activities was strong in the quarter, ending at NOK 419 million (NOK 314 million). A more favorable development in net working capital was the main reason for the improvement in cash flow from operating activities. There were no cash effects from the impairments of bio-based start-ups.
FULL YEAR (1.1-31.12)
Borregaard's operating revenues increased to NOK 7,713 million (NOK 7,617 million) in 2025. EBITDA1 was NOK 1,878 million (NOK 1,874 million), an all-time high result. BioSolutions and BioMaterials had improved results, while Fine Chemicals had a decrease compared with 2024.
Strong sales to agriculture and higher sales of biovanillin in BioSolutions, increased sales prices and improved product mix for BioMaterials, a higher result for fine chemical intermediates and positive net currency effects contributed strongly to the alltime high EBITDA1 in 2025. The result was negatively impacted by a significant reduction in bioethanol sales prices, and cost increases exceeding general inflation.
Operating profit was NOK 1,287 million (NOK 1,283 million). Net financial items amounted to NOK -423 million (NOK -204 million). Net financial items include a total impairment of biobased start-ups of NOK 245 million, of which NOK 225 million relates to Borregaard's ownership in Alginor. (See Other matters and subsequent events).
Profit before tax was NOK 864 million (NOK 1,079 million). Tax expense was NOK -264 million (NOK -250 million), giving a tax
rate of 31% (23%). Earnings per share were NOK 6.22 (NOK 8.25). Excluding impairments of bio-based start-ups, the tax rate was 24% and earnings per share were NOK 8.67. (See Note 14).
The cash flow from operating activities was strong in 2025, ending at NOK 1,356 million (NOK 1,068 million). The cash flow improvement was mainly due to a more favourable development in net working capital. There were no cash effects from the impairments of bio-based start-ups.
CASH FLOW FROM OPERATING ACTIVITIES
1 Alternative Performance Measures, see page 24 for definition.
2Figures in parentheses are for the corresponding period in the previous year.
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BUSINESS AREAS BIOSOLUTIONS
| 1.10-31.12 | 1.1-31.12 | |||
|---|---|---|---|---|
| Amounts in NOK million | 2025 | 2024 | 2025 | 2024 |
| Operating revenues | 1,009 | 1,005 | 4,396 | 4,241 |
| EBITDA¹ | 245 | 251 | 1,209 | 1,104 |
| EBITDA margin¹ (%) | 24.3 | 25.0 | 27.5 | 26.0 |
FOURTH QUARTER
Operating revenues in BioSolutions were NOK 1,009 million (NOK 1,005 million). EBITDA1 was NOK 245 million (NOK 251 million).
High deliveries of biovanillin and sustained growth in sales to agriculture contributed positively. This effect was more than offset by increased costs at the US manufacturing sites, in addition to general cost inflation. Anti-dumping duties on vanillin from China had a positive, but limited, impact on Borregaard's vanillin products. The net currency impact was insignificant in the quarter.
The average price in sales currency was 6% higher compared to the same quarter in 2024 due to an improved product mix. The total sales volume was 3% lower compared with the same quarter in 2024.
AVERAGE GROSS SALES PRICE 3
SALES VOLUME
'000 mtds 4
1 Alternative Performance Measures, see page 24 for definition.
3Average sales price is calculated using actual FX rates, excluding hedging impact.
4Metric tonne dry solid.
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FULL YEAR (1.1-31.12)
Operating revenues in BioSolutions reached NOK 4,396 million (NOK 4,241 million). EBITDA1 increased to an all-time high of NOK 1,209 million (NOK 1,104 million).
Strong sales to agriculture were the main driver of the improved result. In particular, the growth was supported by rising demand for multi-active ingredients in crop protection and the reauthorisation of Borregaard's lignin for use in EU animal feed. In addition, higher sales of biovanillin contributed positively to the result. The implementation of anti-dumping duties on vanillin imports from China had a positive, but limited, impact on Borregaard's vanillin products in 2025.
These positive effects were partly offset by increased costs at the US manufacturing sites, as well as general cost inflation. The net currency impact was positive.
Total sales volume was stable compared with 2024, while average prices in sales currency increased by 2%.
1 Alternative Performance Measures, see page 24 for definition.
2 Figures in parentheses are for the corresponding period in the previous year.
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BIOMATERIALS
| 1.10-31.12 | 1.1-31.12 | |||
|---|---|---|---|---|
| Amounts in NOK million | 2025 | 2024 | 2025 | 2024 |
| Operating revenues | 679 | 613 | 2,691 | 2,622 |
| EBITDA¹ | 127 | 102 | 495 | 434 |
| EBITDA margin¹ (%) | 18.7 | 16.6 | 18.4 | 16.6 |
FOURTH QUARTER
Operating revenues in BioMaterials increased to NOK 679 million (NOK 613 million). EBITDA1 was NOK 127 million (NOK 102 million).
Higher sales prices, increased sales volume, and lower wood and energy costs were the main drivers for the improved result. These were partly offset by an increase in other costs compared with the 4th quarter of 2024. Net currency effects were positive.
The average price in sales currency was 6% higher compared with the 4th quarter of 2024, primarily due to price increases.
FULL YEAR (1.1-31.12)
Operating revenues increased to NOK 2,691 million (NOK 2,622 million). EBITDA1 was NOK 495 million (NOK 434 million).
Higher sales prices and improved product mix were the main reasons for the increased EBITDA1 , partly offset by lower sales volume and higher wood costs. Net currency effects were positive.
The average price in sales currency was 9% higher than in 2024, mainly due to price increases. The product mix improved, driven by increased sales of high-purity cellulose to regulated applications (food, pharma, personal care), and bio-based plastics.
Sales to the construction segment declined as European cellulose ether producers, using speciality cellulose as a key raw material, were negatively impacted by increased imports from Chinese producers.
AVERAGE GROSS SALES PRICE 5
SALES VOLUME
1 Alternative Performance Measures, see page 24 for definition.
2Figures in parentheses are for the corresponding period in the previous year.
5 Average sales price is calculated using actual FX rates, excluding hedging impact.
6 Metric tonne
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FINE CHEMICALS
| 1.10-31.12 | 1.1-31.12 | |||||
|---|---|---|---|---|---|---|
| Amounts in NOK million | 2025 | 2024 | 2025 | 2024 | ||
| Operating revenues | 156 | 138 | 670 | 799 | ||
| EBITDA¹ | 33 | 45 | 174 | 336 | ||
| EBITDA margin¹ (%) | 21.2 | 32.6 | 26.0 | 42.1 |
FOURTH QUARTER
Fine Chemicals' operating revenues were NOK 156 million (NOK 138 million). EBITDA1 was NOK 33 million (NOK 45 million).
Lower bioethanol sales prices were the main reason for the lower result in Fine Chemicals relative to the 4th quarter of 2024. Fine chemical intermediates delivered a strong result, supported by a favourable product mix and increased sales prices. The net currency impact was insignificant in Fine Chemicals.
FULL YEAR (1.1-31.12)
Operating revenues in Fine Chemicals were NOK 670 million (NOK 799 million). EBITDA1 was NOK 174 million (NOK 336 million).
Lower sales prices for bioethanol were the main reason for the lower result. Improved product mix and increased sales prices for fine chemical intermediates contributed positively. The net currency impact was positive in Fine Chemicals.
The reduction in sales prices for Borregaard's advanced bioethanol was largely driven by a significant increase in market supply, particularly from agricultural waste and other alternative sources. This development is a consequence of favourable incentive schemes for advanced bioethanol in Europe.
FINE CHEMICALS - OPERATING REVENUES
1 Alternative Performance Measures, see page 24 for definition.
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FOREIGN EXCHANGE AND HEDGING
Borregaard has a significant currency exposure, which is managed according to the company's hedging strategy. This strategy delays the impact of currency rate fluctuations. In comparison with the 4th quarter of 2024, the net impact of foreign exchange on EBITDA1 , including hedging effects, was NOK 5 million. Hedging effects were NOK -24 million (NOK -93 million) in the quarter.
In 2025, the net impact of foreign exchange on EBITDA1 , including hedging effects, was NOK 115 million. Hedging effects were NOK -174 million (NOK -365 million).
Assuming currency rates as of 3 February 2026 (USD 9.68 and EUR 11.42) and based on currency exposure forecasts, Borregaard expects a net impact of foreign exchange on EBITDA1 of approximately NOK -5 million in the 1 st quarter of 2026 and NOK 55 million for the full year of 2026, compared with the corresponding periods in 2025.
CASH FLOW AND FINANCIAL SITUATION
FOURTH QUARTER
The cash flow from operating activities was strong in the quarter ending at NOK 419 million (NOK 314 million). A more favourable development in net working capital was the main reason for the improvement in cash flow from operating activities. There were no cash effects from the impairments of bio-based start-ups.
FULL YEAR (1.1-31.12)
In 2025, the cash flow from operating activities was strong ending at NOK 1,356 million (NOK 1,068 million). The cash flow improvement from 2024 was mainly due to a more favourable development in net working capital. There were no cash effects from the impairments of bio-based start-ups.
Investments amounted to NOK 925 million (NOK 861 million). Replacement investments were NOK 576 million (NOK 598 million), with the largest expenditures related to the upgrade of the electricity transformation capacity and the installation of air preheater technology in an existing bio-boiler at the Sarpsborg site. Expansion investments1 totalled NOK 349 million (NOK 263 million), with the largest expenditures related to increased capacity at the Sarpsborg site, specialisation projects within BioSolutions and participation in capital raises in Alginor.
Dividend of NOK 424 million (NOK 374 million) was paid out in the 2 nd quarter. In 2025, the Group has sold and repurchased treasury
shares with net proceeds of NOK 18 million (NOK -46 million). Realised effect of hedging of net investments in subsidiaries was NOK 100 million (NOK -109 million).
On 31 December 2025, the Group has net interest-bearing debt 1 totalling NOK 2,090 million (NOK 2,240), a decrease of NOK 150 million from year-end 2024.
At the end of December, the Group was well capitalised with an equity ratio 1 of 60.8% (53.1%) and a leverage ratio 1 of 1.11 (1.20).
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DIVIDEND
The Board of Directors of Borregaard ASA will propose an ordinary dividend for 2025 of NOK 4.75 (NOK 4.25) per share to the General Meeting, corresponding to 55% of net profit excluding impairments of bio-based start-ups. The proposed dividend is 12% higher than the dividend for 2024. Dividend payment is estimated at NOK 474 million. The exact amount will depend on the number of treasury shares held at the date of the General Meeting.
SUSTAINABILITY
Environment, health and safety (EHS) are integral parts of Borregaard's business model.
Greenhouse gas emissions (Scope 1 and 2) decreased by 6.5% in 2025, mainly due to energy conservation and full-year effect of electrification of spraydryers at the Sarpsborg site, which reduced fossil fuel use. The emissions of organic material (COD) decreased by 11% in 2025. Further improvements are expected in 2026.
There were no fatal or high-consequence work-related injuries in 2025. The total recordable injuries per million hours worked (TRIF) were 6.8 (7.9). There were no lost-time injuries in 2025 (2 in 2024). Sick leave was reduced to an absence rate of 3.4% in 2025.
The table below shows key sustainability measures and targets.
| All figures are rolling 12 months | 31.12.2025 | 31.12.2024 | Target 2025 | Long-term target 2030 |
|---|---|---|---|---|
| Greenhouse gas emissions (Scope 1 and 2, `000 tonnes)* | 173 | 185 | < 177 | < 114 ** |
| COD (organic material) in process water discharged | 47 t/day | 53 t/day | <47 t/day | < 40 t/day |
| Total recordable injuries per million hours worked | 6.8 | 7.9 | < 3,5 | 0 |
| Sick leave % *** | 3.4 % | 3.7 % | < 3.7% | < 3.0% |
*Emission figure are based on the best estimate at the time of reporting
**42% reduction from base year 2020
*** Based on updated calculation method from The Federation of Norwegian Industries
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SHARE INFORMATION
During the 4 th quarter of 2025, 88,000 share options were exercised at a strike price of NOK 164.45 per share. In the 4th quarter, Borregaard repurchased a total of 86,222 treasury shares at an
average price of NOK 191.90. Total number of shares outstanding on 31 December 2025 was 100 million, including 270,174 treasury shares. Total number of shareholders was 10,550. Borregaard
ASA's share price was NOK 199.40 at the end of the 4 th quarter (NOK 182.40 at the end of 2024).
OTHER MATTERS AND SUBSEQUENT EVENTS
IMPAIRMENT OF BIO-BASED START-UPS
Borregaard has made a total impairment of NOK 245 million of its investments in the bio-based start-ups Alginor ASA, Kaffe Bueno ApS and Lignovations GmbH to reflect recent development in these companies. The impairment is recorded under Financial items, net.
Late 2025, new information from Alginor indicated delays and additional capital needs. The updated information constituted an indication of impairment under IAS 36, as it materially affects expected future cash flows and the recoverable amount of the investment.
Borregaard has therefore performed an impairment test of its net investment in Alginor in accordance with IAS 36. The recoverable amount, determined as fair value less costs of disposal, was lower than the carrying amount. As a result, an impairment loss of NOK 225 million has been recognised in the quarter. The remaining carrying amount of the share investment in Alginor is NOK 196 million, approximately NOK 10 per share. This excludes the carrying amount of the convertible loan which is NOK 54 million. Total carrying amount of Borregaard's net investment in Alginor is NOK 250 million as of 31 December 2025.
Key assumptions applied in the impairment test, where the recoverable amount is determined using fair value less cost of disposal, include Level 3 input such as updated estimates regarding the project's timeline and capital needs. Borregaard considers these assumptions to reflect the best available information as of the reporting date.
The Danish bioscience company Kaffe Bueno faces delays in its project. Borregaard has decided not to exercise its warrants to subscribe for additional shares. Borregaard has therefore performed an impairment test of its investment in Kaffe Bueno in accordance with IAS 36, based on updated assumptions. As a result, an impairment loss has been recognised in the quarter. Borregaard will participate in a minor convertible loan to Kaffe Bueno.
The Austrian technology start-up Lignovations has also had delays and consequently faced lack of funding. Borregaard has made a total impairment of NOK 20 million in these two start-ups.
NOTICE OF DECISION FROM THE FINANCIAL SUPERVISORY AUTHORITY OF NORWAY
On 27 January 2026, Borregaard received a Notice of Decision from the Financial Supervisory Authority of Norway (FSA). The notice was issued following FSA's regulatory financial reporting review of the company's financial statements as of 31 December 2024. According to the notice, the company is required to perform a new calculation of the recoverable amount as of 31 December 2024 for the investment in the associated company Alginor. If the calculation results in a recoverable amount that is materially lower than the carrying amount, a corresponding restatement will be made. In such case, the correction will be made in Borregaard's 2025 Annual Report with restated figures for 2024. Borregaard is currently in the process of preparing documentation as of 31 December 2024, as requested by the FSA.
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ANTI-DUMPING
In August 2025, RYAM and the United Steelworkers Union filed petitions with US authorities seeking anti-dumping duties on speciality cellulose from Norway, as well as anti-dumping and countervailing duties on similar products from Brazil. Borregaard and the Brazilian producer Bracell are the only exporters of these products to the US from the respective countries.
Borregaard disputes the basis for the allegations, both regarding the data presented and the underlying arguments. Borregaard has engaged legal and accounting experts to manage its defence. In 2025, the cost of legal and accounting experts was slightly above NOK 10 million.
The case has been delayed due to the shutdown of US federal agencies for several weeks at the end of 2025. A preliminary decision on potential duties is expected at the end of May 2026, with a final decision anticipated towards the end of 2026. Such duties may apply retroactively for 90 days.
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OUTLOOK
For BioSolutions, the sales volume for 2026 is forecast to be 340,000 tonnes with continued strong sales to agriculture. The sales volume in the 1st quarter is expected to be approximately 80,000 tonnes.
For BioMaterials, the sales volume is forecast to be 155–160,000 tonnes in 2026. Sales volume of highly specialised grades is expected to be slightly higher than in 2025. The average price in sales currency is expected to be 3–4% lower, partly due to product mix. European cellulose ether producers, major users of speciality cellulose, are expected to continue facing competition from Chinese cellulose ether producers in the construction segment. In the 1st quarter, sales volume for BioMaterials is expected to be 37– 39,000 tonnes.
Sales prices for bioethanol is expected to be largely in line with 2025. Sales volume for fine chemical intermediates is expected to increase compared with 2025.
Borregaard's wood costs in the 1st half of 2026 are expected to be approximately 15% lower compared with the 1st half of 2025.
Uncertainty in the global economy related to tariffs, war and conflicts, may impact Borregaard's markets and costs. Borregaard will continue to closely monitor tariffs, markets and cost development and implement relevant measures.
Sarpsborg, 3 February 2026. The Board of Directors of Borregaard ASA
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CONTENTS
THE GROUP'S INTERIM CONDENSED FINANCIAL STATEMENTS
| The Group`s Interim Condensed Income Statement | 15 |
|---|---|
| Interim Earnings Per Share | 15 |
| The Group`s Interim Condensed Comprehensive Income Statement | 15 |
The Group´s Interim Condensed Statement Of Financial Position |
16 |
| Interim Condensed Changes In Equity |
16 |
| The Group`s Interim Condensed Cash Flow Statement | 17 |
Notes |
18 |
| Alternative Performance Measures | 24 |
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THE GROUP`S INTERIM CONDENSED INCOME STATEMENT
| 1.10-31.12 | 1.1-31.12 | ||||
|---|---|---|---|---|---|
| Amounts in NOK million | Note | 2025 | 2024 | 2025 | 2024 |
| Operating revenues | 2 | 1,833 | 1,744 | 7,713 | 7,617 |
| Operating expenses | -1,428 | -1,346 | -5,835 | -5,743 | |
| Depreciation property, plant and equipment | -156 | -151 | -587 | -556 | |
| Amortisation intangible assets | 0 | -1 | -4 | -5 | |
| Other income and expenses¹ | 3 | 0 | -30 | 0 | -30 |
| Operating profit | 249 | 216 | 1,287 | 1,283 | |
| Financial items, net | 4 | -277 | -46 | -423 | -204 |
| Profit before taxes | -28 | 170 | 864 | 1,079 | |
| Income tax expense | 5 | -57 | -34 | -264 | -250 |
| Profit for the period | -85 | 136 | 600 | 829 | |
| Profit attributable to non-controlling | |||||
| interests | -4 | 7 | -20 | 6 | |
| Profit attributable to owners of the parent | -81 | 129 | 620 | 823 | |
| EBITDA¹ | 405 | 398 | 1,878 | 1,874 |
INTERIM EARNINGS PER SHARE
| 1.10-31.12 | 1.1-31.12 | ||||
|---|---|---|---|---|---|
| Amounts in NOK | 2025 | 2024 | 2025 | 2024 | |
| Earnings per share (100 mill. shares) | 6 | -0.81 | 1.30 | 6.22 | 8.25 |
| Diluted earnings per share | 6 | -0.81 | 1.30 | 6.22 | 8.25 |
THE GROUP`S INTERIM CONDENSED COMPREHENSIVE INCOME STATEMENT
| 1.10-31.12 | 1.1-31.12 | ||||
|---|---|---|---|---|---|
| Amounts in NOK million | Note | 2025 | 2024 | 2025 | 2024 |
| Profit for the period | -85 | 136 | 600 | 829 | |
| Items not to be reclassified to P&L | |||||
| Actuarial gains and losses (after tax) | 31 | 28 | 31 | 28 | |
| Total | 31 | 28 | 31 | 28 | |
| Items to be reclassified to P&L | |||||
| Change in hedging-reserve after tax (cashflow) |
8 | -12 | -203 | 569 | -296 |
| Change in hedging-reserve after tax (net investment in subsidiares) |
8 | -6 | -60 | 80 | -89 |
| Translation effects | -7 | 86 | -110 | 124 | |
| Total | -25 | -177 | 539 | -261 | |
| The Group's comprehensive income | -79 | -13 | 1,170 | 596 | |
| Comprehensive income non-controlling interests |
-4 | 10 | -24 | 10 | |
| Comprehensive income to owners of the parent |
-75 | -23 | 1,194 | 586 |
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THE GROUP´S INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
| Amounts in NOK million | Note | 31.12.2025 | 31.12.2024 |
|---|---|---|---|
| Intangible assets | 13 | 79 | 88 |
| Property, plant and equipment | 13 | 5,255 | 5,026 |
| Right-of-use assets | 445 | 508 | |
| Other assets | 9 | 493 | 524 |
| Investments in joint venture/associate companies | 4 | 270 | 417 |
| Non-current assets | 6,542 | 6,563 | |
| Inventories | 1,521 | 1,498 | |
| Receivables | 9 | 1,516 | 1,441 |
| Cash and cash deposits | 11 | 91 | 82 |
| Current assets | 3,128 | 3,021 | |
| Total assets | 9,670 | 9,584 | |
| Group equity | 10 | 5,853 | 5,041 |
| Non-controlling interests | 25 | 49 | |
| Equity | 5,878 | 5,090 | |
| Provisions and other liabilities | 393 | 591 | |
| Interest-bearing liabilities | 9, 11 | 1,718 | 2,035 |
| Non-current liabilities | 2,111 | 2,626 | |
| Interest-bearing liabilities | 9, 11 | 463 | 288 |
| Other current liabilities | 9 | 1,218 | 1,580 |
| Current liabilities | 1,681 | 1,868 | |
| Equity and liabilites | 9,670 | 9,584 | |
| Equity ratio¹ | 60.8 % | 53.1 % |
INTERIM CONDENSED CHANGES IN EQUITY
| 1.1-31.12.25 | 1.131.12.24 | ||||||
|---|---|---|---|---|---|---|---|
| Non | Non | ||||||
| Controlling | controlling | Total | Controlling | controlling | Total | ||
| Amounts in NOK million | Note | interests | interests | equity | interests | interests | equity |
| Equity 1 January | 5,041 | 49 | 5,090 | 4,855 | 39 | 4,894 | |
| Profit/loss for the period | 620 | -20 | 600 | 823 | 6 | 829 | |
| Items in Comprehensive Income | 8 | 574 | -4 | 570 | -237 | 4 | -233 |
| The Group's Comprehensive income | 8 | 1,194 | -24 | 1,170 | 586 | 10 | 596 |
| Paid dividend | -424 | - | -424 | -374 | - | -374 | |
| Buy-back of treasury shares | -30 | - | -30 | -98 | - | -98 | |
| Exercise of share options | 22 | - | 22 | 31 | - | 31 | |
| Shares to employees | 34 | - | 34 | 28 | - | 28 | |
| Option costs (share based payment) | 16 | - | 16 | 13 | - | 13 | |
| Transactions with non-controlling interests |
- | - | - | - | - | - | |
| Equity at the end of the period | 5,853 | 25 | 5,878 | 5,041 | 49 | 5,090 | |
1 Alternative Performance Measures, see page 24 for definition.
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THE GROUP`S INTERIM CONDENSED CASH FLOW STATEMENT
| 1.10-31.12 | 1.1-31.12 | ||||||
|---|---|---|---|---|---|---|---|
| Amounts in NOK million | Note | 2025 | 2024 | 2025 | 2024 | ||
| Profit before taxes | -28 | 170 | 864 | 1,079 | |||
| Amortisation, depreciation and impairment charges |
156 | 152 | 591 | 561 | |||
| Changes in net working capital, etc. | 57 | 15 | -124 | -326 | |||
| Dividend/share of profit from JV & associate companies |
4 | 255 | 6 | 290 | 22 | ||
| Taxes paid | -21 | -29 | -265 | -268 | |||
| Cash flow from operating activities | 419 | 314 | 1,356 | 1,068 | |||
| Investments property, plant and equipment and intangible assets* |
-329 | -287 | -793 | -711 | |||
| Investment in associate companies and bio-based start-ups* |
4 | -54 | - | -132 | -150 | ||
| Other capital transactions | 5 | 9 | 18 | 19 | |||
| Cash flow from investing activities | -378 | -278 | -907 | -842 | |||
| Dividends | - | - | -424 | -374 | |||
| Proceeds from exercise of options/shares to employees |
10 | 15 | 1 | 48 | 52 | ||
| Buy-back of treasury shares | 7 | -17 | -39 | -30 | -98 | ||
| Gain/(loss) on hedges for net investments in subsidiaries |
-13 | -74 | 100 | -109 | |||
| Net paid to/from shareholders | -15 | -112 | -306 | -529 | |||
| Proceeds from interest-bearing liabilities | 11 | 200 | - | 950 | 500 | ||
| Repayment from interest-bearing liabilities | 11 | -329 | -30 | -1,047 | -724 | ||
| Change in interest-bearing liabilities/other instruments |
11 | 7 | 47 | -56 | 74 | ||
| Change in net interest-bearing liabilities | -122 | 17 | -153 | -150 | |||
| Cash flow from financing activities | -137 | -95 | -459 | -679 | |||
| Change in cash and cash equivalents | -96 | -59 | -10 | -453 | |||
THE GROUP'S INTERIM CONDENSED CASH FLOW STATEMENT CONT.
| 1.1-31.12 | |||||
|---|---|---|---|---|---|
| Note | 2025 | 2024 | 2025 | 2024 | |
| 76 | 45 | -3 | 429 | ||
| -96 | -59 | -10 | -453 | ||
| 4 | 11 | -3 | 21 | ||
| 11 | -16 | -3 | -16 | -3 | |
| 260 | 244 | 576 | 598 | ||
| 123 | 43 | 349 | 263 | ||
| 383 | 287 | 925 | 861 | ||
| 1.10-31.12 |
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NOTES
NOTE 01 Organisation and basis for preparation
GENERAL INFORMATION
Borregaard ASA is incorporated and domiciled in Norway. The address of its registered office is Hjalmar Wessels vei 6, Sarpsborg.
Basis for preparation Use of estimates
These unaudited Interim Condensed Consolidated Financial Statements are prepared in accordance with IAS 34 Interim Financial Reporting. Borregaard ASA is the parent company of the Borregaard Group presented in these Interim Condensed Consolidated Financial Statements.
The same accounting principles and methods of calculation have been applied as in the Consolidated Financial Statements for 2024 for the Borregaard
The same use of estimates has been applied as in
Group.
the Consolidated Financial Statements for 2024.
NOTE 02 Segments
OPERATING REVENUES
| 1.10-31.12 | 1.1-31.12 | |||
|---|---|---|---|---|
| Amounts in NOK million | 2,025 | 2,024 | 2,025 | 2,024 |
| Borregaard | 1,833 | 1,744 | 7,713 | 7,617 |
| BioSolutions | 1,009 | 1,005 | 4,396 | 4,241 |
| BioMaterials | 679 | 613 | 2,691 | 2,622 |
| Fine Chemicals | 156 | 138 | 670 | 799 |
| Eliminations | -11 | -12 | -44 | -45 |
There is limited intercompany sales between the different segments and eliminations consist essentially of allocations from the corporate headquarter.
EBITDA1
| 1.10-31.12 | 1.1-31.12 | |||
|---|---|---|---|---|
| Amounts in NOK million | 2025 | 2024 | 2025 | 2024 |
| Borregaaard | 405 | 398 | 1,878 | 1,874 |
| BioSolutions | 245 | 251 | 1,209 | 1,104 |
| BioMaterials | 127 | 102 | 495 | 434 |
| Fine Chemicals | 33 | 45 | 174 | 336 |
| Reconciliation against operating profit & profit before tax |
||||
| EBITDA¹ | 405 | 398 | 1,878 | 1,874 |
| Depreciations and write downs | -156 | -151 | -587 | -556 |
| Amortization intangible assets | - | -1 | -4 | -5 |
| Other income and expenses¹ | - | -30 | - | -30 |
| Operating profit | 249 | 216 | 1,287 | 1,283 |
| Financial items, net | -277 | -46 | -423 | -204 |
| Profit before taxes | -28 | 170 | 864 | 1,079 |
SALES REVENUES
| 1.10-31.12 | 1.1-31.12 | |||
|---|---|---|---|---|
| Amounts in NOK million | 2025 | 2024 | 2025 | 2024 |
| Borregaard | 1,800 | 1,710 | 7,580 | 7,502 |
| BioSolutions | 984 | 972 | 4,275 | 4,132 |
| BioMaterials | 662 | 602 | 2,643 | 2,579 |
| Fine Chemicals | 154 | 136 | 662 | 791 |
| Eliminations | - | - | - | - |
Operating revenues consist of sales revenues and other revenues such as commissions, revenues from waste received for incineration etc.
1 Alternative Performance Measures, see page 24 for definition.
{18}------------------------------------------------
NOTE 03 Other income and expenses
There are no items recorded as Other income and expenses1 as of 31 December 2025.
NOTE 04 Financial items
NET FINANCIAL ITEMS
| 1.10-31.12 | 1.1-31.12 | ||||
|---|---|---|---|---|---|
| Amounts in NOK million | 2025 | 2024 | 2025 | 2024 | |
| Net interest expenses | -26 | -39 | -134 | -160 | |
| Currency gain/loss | -2 | -6 | -11 | -17 | |
| Share of profit/-loss from associates | -244 | -6 | -279 | -22 | |
| Other financial items, net | -5 | 5 | 1 | -5 | |
| Net financial items | -277 | -46 | -423 | -204 |
As of 31 December 2025, Borregaard holds 41% of the shares in Alginor ASA on a fully diluted basis. In addition, Borregaard participated in the first tranche of a convertible loan to Alginor of NOK 54 million in the 4th quarter of 2025. See Note 14.
Borregaard also holds 12% of the shares in Kaffe Bueno ApS.
Share of profit/-loss from associates include impairment of investments in Alginor and Kaffe Bueno. See Note 14.
Other financial items, net includes changes in committed return on the Group's unfunded pension plan.
NOTE 5 Income tax expense
The tax rate of 30.6% (23.2%) for 2025 is a compilation of the tax rates in the various countries in which Borregaard operates and has taxable income. The corporate income tax rate in Norway is 22%. Excluding impairments of bio-based start-ups, the tax rate was 23.8% in 2025.
In addition to the compilation of the tax rates in the various countries in which Borregaard operates and has taxable income, the income tax rate for the Group is also impacted by the following: LignoTech Florida is a limited liability company (LLC) which is taxed on the owners hand. Profit before tax is 100% consolidated in the Borregaard Group, whereas the tax expense is calculated based on Borregaard's 55% ownership. Consequently, profit attributable to non-controlling interests for LignoTech Florida (45%) is calculated on profit before tax.
Share of profit after tax from the associated companies, Alginor ASA and Kaffe Bueno ApS, is accounted for as part of operating profit and profit before tax. There are carry forward losses on the Group which will not be recognised as deferred tax asset, and hence increase the Group's tax rate.
NOTE 06 Earnings per share (EPS)
The share capital consists of 100 million shares. The company holds 270,174 treasury shares and average number of outstanding shares as of 31 December 2025 were 99.71 million. Average number of outstanding diluted shares were 99.73 million (99.75 in 2024).
Earnings per diluted share were NOK -0.81 in the 4 th quarter (NOK 1.30 in the 4 th quarter of 2024). Earnings per diluted share for 2025 were NOK 6.22 (NOK 8.25). Excluding impairments of bio-based start-ups, earnings per share were NOK 1.64 in the quarter and NOK 8.67 for the full year.
{19}------------------------------------------------
NOTE 07 Stock options
During the 4th quarter, 88,000 share options at a strike price of NOK 164.45 per share were exercised.
The Group Executive Management and other key employees hold a total of 1,386,000 stock options in five different share option programmes in Borregaard.
| Stock options | Issued 2021 | Issued 2022 | Issued 2023 | Issued 2024 | Issued Feb 2025 | Issued Aug 2025 |
|---|---|---|---|---|---|---|
| Number of stock options | 137,000 | 200,000 | 250,000 | 371,000 | 398,000 | 30,000 |
| Strike price* | 164.45 | 212.50 | 182.75 | 191.10 | 216.97 | 219.31 |
| Vesting period | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years |
| Expiry date | 16.02.2026 | 17.02.2027 | 01.03.2028 | 27.02.2029 | 14.02.2030 | 01.08.2030 |
*Strike prices have been adjusted for dividend paid since issuance of stock options.
NOTE 08 Statement of comprehensive income
The statement of comprehensive income presents the changes in the value of hedging instruments, including both cash flow hedges and hedges of net investments in subsidiaries, which are reflected in the hedging reserve.
These amounts are shown net of tax.
| 31.12.2025 | 31.12.2024 | |||
|---|---|---|---|---|
| Hedges of net | Hedges of net | |||
| Cash flow | investments in | Cash flow | investments in | |
| Amounts in NOK million | hedges | subsidiares | hedges | subsidiares |
| Tax effect year-to-date | 8 | -74 | -153 | -97 |
| Hedging reserve after tax | 28 | -230 | -541 | -310 |
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NOTE 09 Fair value hierarchy
For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period.
The following measurement levels are used for determining the fair value of financial instruments:
- •Level 1 Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities
- •Level 2 Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable)
- •Level 3 Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable)
There were no transfers from one level to another in the measurement hierarchy from 2024 to the 4th quarter of 2025.
Borregaard consequently has no items defined as level 1. The bond is determined as measurement level 3. The fair value of the bond is deemed to equal its book value. Set out below is a comparison of the carrying amount and the fair value of financial instruments as of 31 December 2025:
| 31.12.2025 | 31.12.2024 | ||||
|---|---|---|---|---|---|
| Carrying | Carrying | ||||
| Amounts in NOK million | Level | amount | Fair value | amount | Fair value |
| FINANCIAL ASSETS | |||||
| Non-current financial receivables | 2 | 176 | 176 | 192 | 192 |
| Non-current derivatives | 2 | 89 | 89 | 1 | 1 |
| Share investments | 2 | 17 | 17 | 28 | 28 |
| Current derivatives | 2 | 74 | 74 | 5 | 5 |
| Total financial assets | 356 | 356 | 226 | 226 | |
| FINANCIAL LIABILITIES | |||||
| Non-current financial liabilities | 2, 3 | 1,720 | 1,720 | 2,037 | 2,037 |
| Non-current derivatives | 2 | 68 | 68 | 336 | 336 |
| Current financial liabilities | 2 | 463 | 463 | 288 | 288 |
| Current derivatives | 2 | 50 | 50 | 363 | 363 |
| Total financial liabilities | 2,301 | 2,301 | 3,024 | 3,024 | |
| FINANCIAL INSTRUMENT MEASURED AT FAIR VALUE | |||||
| Amounts in NOK million | Level 1 | Level 2 | Level 3 | ||
| Financial instruments 31.12.2025 | -1,945 | - | -1,445 | -500 | |
| Financial instruments 31.12.2024 | -2,798 | - | -2,298 | -500 |
The financial instruments are measured based on observable spot exchange rates, the yield curves of the respective currencies as well as the currency basis spreads between the respective currencies.
{21}------------------------------------------------
NOTE 10 Compilation of Equity
| Amounts in NOK million | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Share capital | 100 | 100 |
| Treasury shares | - | - |
| Share premium | 1,346 | 1,346 |
| Other paid-in capital | 1,097 | 1,025 |
| Translation effects | 265 | 371 |
| Hedging reserve (after tax) | -202 | -851 |
| Actuarial gains/Losses | 147 | 116 |
| Retained earnings | 3,100 | 2,934 |
| Group equity (controlling interests) | 5,853 | 5,041 |
As of 31 December 2025, the company held 270,174 treasury shares at an average cost of NOK 190.11
NOTE 11 Net interest-bearing debt1
The various elements of net interest-bearing debt are shown in the following table:
| Amounts in NOK million | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Non-current interest-bearing liabilities | 1,718 | 2,035 |
| Current interest-bearing liabilities including overdraft of cashpool | 463 | 288 |
| Non-current interest-bearing receivables (included in "Other Assets") | - | -1 |
| Cash and cash equivalents | -91 | -82 |
| Net interest-bearing liabilities | 2,090 | 2,240 |
| -Of which IFRS 16 Leases | 497 | 554 |
NOTE 12 Related parties
The members of the Group Executive Management of Borregaard held a total of 504,000 stock options in the Company as of 31 December 2025.
NOTE 13 Assessments relating to impairment
See Note 14 for impairment related to bio-based start-ups as of 31 December 2025. No other impairment indicators have been identified in the Borregaard Group's property, plant and equipment or intangible assets in the 4th quarter of 2025.
1 Alternative Performance Measures, see page 24 for definition.
{22}------------------------------------------------
NOTE 14 Other matters and subsequent events
Impairment of bio-based start-ups
Borregaard has made a total impairment of NOK 245 million of its investments in the biobased start-ups Alginor ASA, Kaffe Bueno ApS and Lignovations GmbH to reflect recent development in these companies. The impairment is recorded under Financial items, net.
Late 2025, new information from Alginor indicated delays and additional capital needs. The updated information constituted an indication of impairment under IAS 36, as it materially affects expected future cash flows and the recoverable amount of the investment.
Borregaard has therefore performed an impairment test of its net investment in Alginor in accordance with IAS 36. The recoverable amount, determined as fair value less costs of disposal, was lower than the carrying amount. As a result, an impairment loss of NOK 225 million has been recognised in the quarter. The remaining carrying amount of the share investment in Alginor is NOK 196 million, approximately NOK 10 per share. This excludes the carrying amount of the convertible loan which is NOK 54 million. Total carrying amount
of Borregaard's net investment in Alginor is NOK 250 million as of 31 December 2025.
Key assumptions applied in the impairment test, where the recoverable amount is determined using fair value less cost of disposal, include Level 3 input such as updated estimates regarding the project's timeline and capital needs. Borregaard considers these assumptions to reflect the best available information as of the reporting date.
The Danish bioscience company Kaffe Bueno faces delays in its project. Borregaard has decided not to exercise its warrants to subscribe for additional shares. Borregaard has therefore performed an impairment test of its investment in Kaffe Bueno in accordance with IAS 36, based on updated assumptions. As a result, an impairment loss has been recognised in the quarter. Borregaard will participate in a minor convertible loan to Kaffe Bueno.
The Austrian technology start-up Lignovations has also had delays and consequently faced lack of funding. Borregaard has made a total impairment of NOK 20 million in these two start-ups.
Notice of Decision from the Financial Supervisory Authority of Norway
On 27 January 2026, Borregaard received a Notice of Decision from the Financial Supervisory Authority of Norway (FSA). The notice was issued following FSA's regulatory financial reporting review of the company's financial statements as of 31 December 2024. According to the notice, the company is required to perform a new calculation of the recoverable amount as of 31 December 2024 for the investment in the associated company Alginor. If the calculation results in a recoverable amount that is materially lower than the carrying amount, a corresponding restatement will be made. In such case, the correction will be made in Borregaard's 2025 Annual Report with restated figures for 2024. Borregaard is currently in the process of preparing documentation as of 31 December 2024, as requested by the FSA.
Convertible loan to Alginor
Borregaard, together with the shareholders Must Invest and Hatteland Group, act as guarantors for a NOK 200 million convertible loan to Alginor, of which the first tranche of NOK 100 million was paid out in October 2025. Borregaard's participation was NOK 54 million in the first tranche. The second tranche will be paid out in February 2026 and Borregaard will participate with approximately the same amount as in the first tranche.
The loan may be converted to new shares by the lenders. The subscription price upon exercise of the conversion right shall be NOK 10 per share, subject to adjustment for corporate actions such as share splits, reversed splits, dividends etc.
The convertible loan is presented as part of Borregaard's net investment in associate companies according to IAS 28. This presentation reflects that conversion to equity is considered highly probable, and that the loan forms part of the long‑term financial interest which, in substance, is an extension of the investment in the associate.
{23}------------------------------------------------
ALTERNATIVE PERFORMANCE MEASURES
In the discussion of the reported operating results, financial position and cash flows, Borregaard refers to certain measures which are not defined by generally accepted accounting principles (GAAP) such as IFRS. Borregaard management makes regular use of these Alternative Performance Measures and is of the opinion that this information, along with comparable GAAP
measures, is useful to investors who wish to evaluate the company's operating performance, ability to repay debt and capability to pursue new business opportunities. Such Alternative Performance Measures should not be viewed in isolation or as an alternative to the equivalent GAAP measure.
{24}------------------------------------------------
EBITDA
Decription
EBITDA is defined by Borregaard as operating profit before depreciation, amortisation and other income and expenses.
Reason for including
Shows performance regardless of capital structure, tax situation and adjusted for income and expenses related transactions and events not considered by management to be part of operating activities. Management believes the measure enables an evaluation of operating performance.
| 1.10-31.12 | 1.1-31.12 | |||
|---|---|---|---|---|
| EBITDA | 2025 | 2024 | 2025 | 2024 |
| Operating profit | 249 | 216 | 1,287 | 1,283 |
| Other income and expenses | - | 30 | - | 30 |
| Amortisation intangible assets | - | 1 | 4 | 5 |
| Depreciation and impairment property, plant and | ||||
| equipment | 156 | 151 | 587 | 556 |
| EBITDA | 405 | 398 | 1,878 | 1,874 |
EBITDA MARGIN
Decription
EBITDA margin is defined by Borregaard as EBITDA divided by operating revenues.
Reason for including
Shows the operations' performance regardless of capital structure and tax situation as a ratio to operating revenue.
| 1.10-31.12 | 1.1-31.12 | ||||
|---|---|---|---|---|---|
| EBITDA MARGIN | 2025 | 2024 | 2025 | 2024 | |
| EBITDA | 405 | 398 | 1,878 | 1,874 | |
| Operating revenues | 1,833 | 1,744 | 7,713 | 7,617 | |
| EBITDA margin (%) (EBITDA/operating revenues) |
22.1 | 22.8 | 24.3 | 24.6 |
EQUITY RATIO
Decription
Equity ratio is defined by Borregaard as equity (including non-controlling interests) divided by equity and liabilities.
Reason for including
Equity ratio is an important measure in describing the capital structure.
| EQUITY RATIO | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Total equity | 5,878 | 5,090 |
| Equity & liabilities | 9,670 | 9,584 |
| Equity ratio (%) (total equity/equity & liabilities) | 60.8 | 53.1 |
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EXPANSION INVESTMENTS
Description
Borregaard's investments are either categorised as replacement or expansion. Expansion investments is defined by Borregaard as investments made in order to expand production capacity, produce new products or to improve the performance of existing products. Such investments include business acquisitions, investments in biobased start-ups, pilot plants, capitalised research and development costs and new distribution set-ups.
Reason for including
Borregaard's strategic priorities are specialisation and diversification, increase value added from the biorefinery, develop business areas and to continue emphasis on ESG along the entire value chain. To be able to deliver on those priorities, expansion investments are needed. As such, expansion investments are important information for investors. One of Borregaard's financial objectives is to have an internal rate of return >15% pre-tax for expansion investments.
| 1.10-31.12 | 1.1-31.12 | |||
|---|---|---|---|---|
| EXPANSION INVESTMENTS | 2025 | 2024 | 2025 | 2024 |
| Total investments including investments in associate companies and bio-based start-ups |
383 | 287 | 925 | 861 |
| Replacement investments | -260 | -244 | -576 | -598 |
| Expansion investments including investment in associate companies and bio-based start-ups |
123 | 43 | 349 | 263 |
OTHER INCOME AND EXPENSES
Description
Other income and expenses are defined by Borregaard as non-recurring items or items related to other periods or to a discontinued business or activity. These items are not viewed as reliable indicators of future earnings based on the business areas' normal operations. These items will be included in the Group's operating profit.
Reason for including
To be able to compare the EBITDA of different reporting periods, significant non-recurring items not directly related to operating activities, are included in Other income and expenses.
| 1.10-31.12 | 1.1-31.12 | |||
|---|---|---|---|---|
| OTHER INCOME AND EXPENSES | 2025 | 2024 | 2025 | 2024 |
| Other income and expenses | - | -30 | - | -30 |
{26}------------------------------------------------
NET INTEREST-BEARING DEBT
Decription
Net interest-bearing debt is defined by Borregaard as interest-bearing liabilities minus interest-bearing assets.
Reason for including
Net interest-bearing debt provides an indicator of the net indebtedness and an indicator of the overall strength of the statement of financial position. Net interest-bearing debt is part of Borregaard's financial covenants (leverage ratio) and is important in understanding the capital structure.
| NET INTEREST-BEARING DEBT | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Non-current interest-bearing liabilities | 1,718 | 2,035 |
| Current interest-bearing liabilities including overdraft of cashpool |
463 | 288 |
| Non-current interest-bearing receivables (included in "Other assets") |
- | -1 |
| Cash and cash deposits | -91 | -82 |
| Net interest-bearing debt | 2,090 | 2,240 |
LEVERAGE RATIO
Decription
Leverage ratio is defined by Borregaard as net interest bearing debt divided by last twelve months' (LTM) EBITDA.
Reason for including
Leverage ratio is an indicator of the overall strength of the statement of financial position. Borregaard has a targeted leverage ratio between 1.0 and 2.25 over time. Leverage ratio is Borregaard's financial covenant on long-term credit facilities.
| LEVERAGE RATIO | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Net interest-bearing debt | 2,090 | 2,240 |
| EBITDA | 1,878 | 1,874 |
| Leverage ratio (net interest-bearing debt/EBITDA) | 1.11 | 1.20 |
CAPITAL EMPLOYED
Decription
Capital employed is defined by Borregaard as the total of net working capital, intangible assets, property, plant and equipment, rightof-use assets minus net pension liabilities.
Reason for including
Borregaard uses capital employed as basis for calculating ROCE.
| CAPITAL EMPLOYED (END OF PERIOD) | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Capital employed (end of period) | 8,237 | 8,172 |
{27}------------------------------------------------
RETURN ON CAPITAL EMPLOYED (ROCE)
Description
Return on capital employed (ROCE) is defined by Borregaard as last twelve months' (LTM) capital contribution (operating profit before amortisation and other income and expenses) divided by average capital employed based on the ending balance of the last five quarters.
Reason for inclduing
ROCE is an important financial ratio to assess Borregaard's profitability and capital efficiency. One of Borregaard's financial objectives is to have ROCE >15% pre-tax over a business cycle.
| RETURN ON CAPITAL EMPLOYED (ROCE) | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Capital employed end of: | ||
| Q4, 2023 | - | 7,142 |
| Q1, 2024 | - | 7,789 |
| Q2, 2024 | - | 7,582 |
| Q3, 2024 | - | 7,813 |
| Q4, 2024 | 8,172 | 8,172 |
| Q1, 2025 | 8,290 | - |
| Q2, 2025 | 8,292 | - |
| Q3, 2025 | 8,247 | - |
| Q4, 2025 | 8,237 | - |
| Average capital employed | 8,248 | 7,700 |
| Capital contribution | 31.12.2025 | 31.12.2024 |
| Operating profit | 1,287 | 1,283 |
| Other income and expenses | - | 30 |
| Amortisation intangible assets | 4 | 5 |
| Capital contribution | 1,291 | 1,318 |
| RETURN ON CAPITAL EMPLOYED (ROCE) | 31.12.2025 | 31.12.2024 |
| Capital contribution | 1,291 | 1,318 |
| Average capital employed | 8,248 | 7,700 |
| Return on capital employed (ROCE) (%) (capital contribution/ average capital employed) |
15.7 | 17.1 |
{28}------------------------------------------------
