Bakkafrost: A strong start to 2026

The Bakkafrost Group delivered a total operational EBIT of DKK 544 million (DKK 505 million) in Q1 2026

(Figures in parenthesis refer to the same period last year unless otherwise specified)

The performance in Q1 2026 per region was as follows:

• Faroe Islands    Revenues of DKK 1,671 million (1,403 million)

                          Operational EBIT of DKK 572 million (435 million)

• Scotland            Revenues of DKK 443 million (496 million)

                          Operational EBIT of DKK -28 million (71 million)

Commenting on the result, CEO Regin Jacobsen said:

"Overall, we are satisfied with the results in this quarter. Bakkafrost entered 2026 with a strong biological and operational foundation, particularly in the Faroe Islands, where farming operations continued to deliver robust growth, record high harvested volumes in any first quarter, high harvest weights and low feed conversion ratios. Fish health remained strong and mortality was low.

This strong performance supported an exceptionally good cost development, with Faroese ringside costs down 13% year-on-year. The Faroese freshwater operations also continued to improve, with higher capacity utilisation, strong cost discipline and robust smolt quality, leading to smolt costs being 10% lower than in Q1 2025. At the same time, marine raw material prices for feed are expected to increase, which may partly offset the positive cost development going forward.

Based on the strong biology, high biomass at sea and good growth in the Faroe Islands, we are increasing our 2026 harvest volume guidance from 92,000 tonnes to 97,000 tonnes. Consequently, we are also increasing the expected production of fish feed to 175,000 tonnes to support the higher biomass growth and harvest outlook.

In Scotland, marine operations delivered stable biological performance, with improved survivability compared with Q1 2025. During 2026, the biomass at sea will gradually transition towards large, high-quality smolt from Applecross, with benefits expected to become increasingly visible from 2027 onwards through improved fish health, stronger growth and reduced biological risk.

The salmon market was characterised by substantially increased supply in Q1, while demand remained strong across several markets, especially in China. Salmon reference prices were lower than in Q1 2025, and the market is expected to become tighter on supply from Q2 and throughout the rest of the year.

Our strategic priorities remain unchanged. Our focus remains on strong biological control, improve cost efficiency and execute our investment programme with discipline to support long-term sustainable value creation."

During Q1 2026, the FOF segment sourced 51,199 tonnes (109,502 tonnes) of raw material. The Operational EBIT margin was 15% (13%), and fish feed sales amounted to 35,421 tonnes (31,338 tonnes).

In Q1 2026, the Freshwater segments in the Faroe Islands and Scotland transferred a total of 4.9 million (3.8 million) smolts combined:

• Freshwater FO: 3.9 million (3.2 million),
• Freshwater SCT: 1.0 million (0.6 million).

In Q1 2026, the Freshwater FO segment made an operational EBIT per kg transferred smolt of DKK 44.04 (DKK 42.11), corresponding to NOK 69.29 (NOK 65.75). The Freshwater SCT segment made an operational EBIT per kg transferred smolt of DKK -121.41 (DKK 12.33), corresponding to NOK -190.98 (NOK 19.26). In Q1 2026, the Freshwater SCT segment had incident-based costs of DKK 16 million (DKK 0 million).

The Farming segments achieved lower prices in Q1 2026 than in Q1 2025. The Farming segments had higher volumes in Q1 2026 compared to Q1 2025. In Q1 2026, the Farming SCT segment had incident-based costs of DKK 3 million (DKK 8 million).

The total combined harvest in Q1 2026 of the farming segments in the Faroe Islands and Scotland was 31,337 tonnes gutted weight (25,200 tgw):

• Farming FO: 25,139 tgw (18,914 tgw),
• Farming SCT: 6,198 tgw (6,286 tgw).

In Q1 2026, the Farming FO segment made an operational EBIT per kg of DKK 15.35 (DKK 15.15), corresponding to NOK 24.14 (NOK 23.65). The Farming SCT segment made an operational EBIT per kg of DKK -10.10 (DKK 2.53), corresponding to NOK -15.90 (NOK 3.95).

The Services segment made an operational EBIT per kg of DKK 1.32 (DKK 1.51), corresponding to NOK 2.08 (NOK 2.35). The operational EBIT margin for the segment was 16% (17%).

The Sales & Other segment had a revenue of DKK 3,332 million (2,826 million) and an operational EBIT margin of 1% (1%). The operational EBIT per kg was DKK 1.51 (DKK 1.65), corresponding to NOK 2.37 (NOK 2.57).

The performance related to the Faroe Islands and Scotland as a region can be found in the Appendix.

The long-term goal of the Board of Directors is that 30-50% of earnings per share shall be paid out as a dividend. Bakkafrost's financial position is strong, with a solid balance sheet, a competitive operation, and available credit facilities. The Annual General Meeting convened on 30 April 2026 decided to pay out a dividend on DKK 3.45 (NOK 5.06) The total dividend of DKK 205 million (NOK 300 million) will be paid out on or around 21 May 2026.

OUTLOOK AND OPERATIONAL PERFORMANCE

Market

Substantially increased supply in Q1 2026

The supply of salmon increased 14.6% in Q1 2026 compared to Q1 2025, incl. inventory movements. Without inventory movements, the supply increase was 12.2%, according to the latest estimate from Kontali Analyse.

Lower salmon prices in Q1 2026

Salmon reference prices (in NOK) for 4-5kg superior salmon were 5% lower this quarter compared to Q1 2025. Increased supply affected the prices negatively even though the demand was strong in most markets, especially the Chinese market.

2-3% growth in 2026

The global supply is expected to increase around 5% in H1 2026. In H2 2026, the global supply is expected to be similar to H2 2025. For the full year 2026, the global supply is expected grow around 2-3%, excluding inventory movements.

Bakkafrost has a strong focus on ensuring a well-balanced flow to the different markets to increase diversification and mitigate market risk. Bakkafrost operates in the main salmon markets, Europe, the USA, and the Far East. Since the beginning of the war in Ukraine, Bakkafrost has stopped all trading with Russia.

Operations

Farming Faroe Islands

The Faroese farming operations continued to deliver strong growth and biological performance in Q1 2026, supported by robust fish health. Harvest weights were high, while feed conversion ratios were low, reflecting efficient biological performance. Sea lice levels were well managed through the dual-freshwater treatment strategy, although lice levels were higher than in Q1 2025, partly due to higher seawater temperatures, increased biomass and natural variations. Mortality remained low during the quarter.

The continued stocking of large, high-quality smolt is supporting strong survivability and growth in the marine phase. Combined with stable biological performance and improved operational efficiency, ringside costs have reduced by 13% YoY. The high biomass at sea entering 2026 provides a solid foundation for future harvest volumes and supports continued operational robustness in the Faroese farming operations.

Freshwater Faroe Islands

The Faroese freshwater operations entered 2026 with a strong biological and operational foundation, following a record year in 2025 across key parameters such as smolt numbers, biomass in hatcheries, average smolt size and mortality levels. Performance in the hatcheries remained strong in Q1 2026, with low mortality during production and continued positive performance following transfer to the marine phase, reflecting the quality and robustness of the smolt produced.

Bakkafrost continues to increase capacity utilisation in the Faroese freshwater operations, supporting higher production volumes and further cost efficiencies. Smolt costs are continuing to reduce and were 10% lower than in Q1 2025, driven by improved operational performance, higher utilisation and strong cost discipline. The high biomass currently in the freshwater pipeline supports continued stability and growth in the marine operations.

Construction of the new hatchery in Skálavík is progressing according to plan. The facility remains on track, with first egg intake expected during Q2 2026, followed by initial smolt output towards the end of 2027. Upon completion, total smolt production capacity in the Faroe Islands is expected to increase to approximately 24.4 million smolt at 500g, up from the current level of around 18 million. The new hatchery will strengthen long-term smolt supply, enhance biological control and support continued operational robustness in the Faroese value chain.

Farming Scotland

The Scottish farming operations delivered stable biological performance in Q1 2026, with increased survivability compared to Q1 2025. Biological performance improved during the quarter, reflecting continued progress in stabilising the marine operations and strengthening operational control. The operations continued to harvest large fish during the quarter, supported by improved underlying fish health and favourable production planning.

Seawater temperatures were normal, which contributed to stable biological environment. The operational focus in Q1 2026 remained on biological control, cost discipline and strengthening the underlying farming platform. During 2026, the biomass at sea will gradually transition towards being based on large, high-quality smolt. The benefits from this transition are expected to become increasingly visible from 2027 onwards, through improved fish health, stronger growth rates supporting improved cost position  and reduced biological risk. This strategic shift remains central to building a more robust and sustainable aquaculture platform in Scotland.

Freshwater Scotland

The Scottish freshwater operation continues its ramp-up, with the completed Applecross facility established as the cornerstone of Bakkafrost's strategy to produce large, high-quality smolt in Scotland. Applecross has a production capacity of approximately 3,500 tonnes and is expected to produce smolt with an average weight between 200g and 400g.

The ramp-up is being managed steadily and with focus on biological stability, operational predictability and consistent smolt quality. Bakkafrost continues to see stable improvements in the Scottish freshwater operations, supported by improved operational routines and stronger? production control. The operation experienced some smolt mortality during the quarter associated with isolated technical and water-quality related challenges during system start-up.

In Q1 2026, the average weight of transferred smolt from Applecross in Scotland was 269g, which is 16% higher than in Q1 2025. The average smolt weight for all Bakkafrost's smolt release in Scotland in the quarter was 218g, which is 29% higher than in Q1 2025.

Services

Bakkafrost's freshwater dual-treatment service vessels continue to play a vital role in ensuring good fish welfare and efficient sea lice removal through freshwater treatments. As biomass grows, capacity utilisation of these vessels is increasing, supporting stronger biological control and operational efficiency across the marine farming operations.

The Group's large, rebuilt farming service vessels for smolt transport are securing efficient and fish-welfare-friendly smolt transfers in both the Faroe Islands and Scotland. The upgraded smolt transport systems strengthen operational reliability during transfer operations and support the continued development of robust farming platforms in both regions.

In Q1 2026, the Services segment recognised a one-off cost of DKK 18 million related to the write-off of older delousing equipment made obsolete by the dual-freshwater treatment vessel, Bakkafossur. The write-off reflects the continued modernisation of the service vessel platform.

Smolt transfer

Bakkafrost's expected smolt transfer in 2026 in the Faroe Islands is around 20.0 million smolts with an average weight of around 440g. In Scotland, the smolt transfer in 2026 is expected to be around 10.0 million smolt with an average weight of 179g. This includes internally produced smolt as well as externally sourced. The number and average weight of smolts transferred are key elements of predicting Bakkafrost's future production.

For 2026, Bakkafrost increases the expected harvest in the Faroe Islands from 92,000 tonnes to around 97,000 tonnes gutted weight. The expected harvest in Scotland is maintained at around 20,000 tonnes in Scotland, giving at total of around 117,000 tonnes gutted weight. The quarterly harvest profile is outlined in in the table below. Biological, environmental and market conditions can affect the expected harvest profile.

Expected harvest profile in 2026 as a % of total harvest pr. region:

The estimates for harvest volumes and smolt transfers in both geographies are dependent on biological development.

Sales & VAP (Value added products)

Bakkafrost's flexible value chain, including state-of-the-art VAP processing capacity, enables the Group to adapt to changes in market dynamics and other factors that may affect commercial risk. This flexibility supports balanced allocation between spot sales, contracts and value-added production.

For 2026, Bakkafrost intends to sign contracts covering approximately 15-25% of the expected combined harvest volumes in the Faroe Islands and Scotland.

FOF (Fishmeal, oil and feed)

The outlook of fishmeal and fish oil production is dependent on the availability of raw materials.

The ICES 2026 recommendation for blue whiting is 851 thousand tonnes, which represents a 41.2% decrease from the recommendation for 2025.

In 2026 Bakkafrost expects lower production volumes of fishmeal and fish oil as in 2026. Consequently, Bakkafrost expects lower external sale of fishmeal in 2026.

Bakkafrost increases the expected feed production from 165,000 tonnes to around 175,000 tonnes in 2026. Close to all of this will be sold internally to Bakkafrost's Faroese and Scottish Farming segments.

Investments

On the Capital Markets Day on 17-18 June 2025, Bakkafrost announced a 5.0bn DKK investment plan for 2026-2030. The main purpose is to reduce biological risk, improve efficiency, and enable continued sustainable organic growth in the Faroe Islands and Scotland.

The investments in the Faroe Islands will increase the annual smolt production capacity to 24.4 million smolt of 500g. The feed production capacity and flexibility are also increased to further improve R&D capabilities and meet the growing demand for feed as harvest volumes increase in the Faroe Islands and Scotland. Also, investments in new farming sites and new farming technology are included, as well as investments to improve harvest capacity and flexibility with Live Fish Holding Tanks.

In Scotland, planned investments include site expansions and optimisation as well as building a new harvest and processing facility to accommodate the growing harvest volume.

As a shared service to the Group, the investment plan includes building 2 new dual-freshwater treatment vessels in the FSV segment.

Incorporated into the investment plan is also 245mDKK earmarked to energy transition, spread across the value chain.

With the investment plan, Bakkafrost expects to sustainably grow the total annual harvest volumes to 162,000 tonnes in 2030.

Since the announcement of the 2026-2030 investment plan on the CMD in 2025, Bakkafrost has decided to let some of the investments planned for 2025 rollover into 2026 due to the weak market outlook for 2025. Consequently, the timing of other investments in the announced 2026-2030 plan have been adjusted.

Financial
The global salmon product market's long-term balance is likely to favour Bakkafrost. Bakkafrost has a long value chain and a cost-efficient production of high-quality salmon products and will likely maintain financial flexibility going forward.

In March 2022, Bakkafrost secured a 700 mEUR sustainability-linked credit facility (expandable by 150 mEUR) with a 5-year term and 2-year extension options which have been executed. This facility, along with Bakkafrost's strong equity ratio, bolsters the Group's financial strength for organic growth and cost reduction in Scotland, while also facilitating M&A and future organic growth opportunities, and upholding an unchanged dividend policy.

Please find the Company's Q1 2026 report and the Q1 2026 presentation enclosed.

Contacts:

• Regin Jacobsen, CEO of P/F Bakkafrost: +298 235001 (mobile)
• Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 235060 (mobile)

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

About Bakkafrost:

Bakkafrost is the largest salmon farmer in the Faroe Islands and the second-largest salmon farmer in Scotland. The Group is fully integrated from feed production to smolt, farming, VAP and sales. The Group has production of fishmeal, fish oil and salmon feed in the Faroe Islands and primary and secondary processing in the Faroe Islands, Scotland and Denmark. The Group operates sea farming and broodstock operations in both the Faroe Islands and Scotland. The Group has built a biogas plant in the Faroe Islands. The headquarter is located in the Faroe Islands, and the Group has sales and administration offices in Edinburgh (Scotland), Boulogne-Sur-Mer (France), New Jersey (US) and Munkebo (DK). The Bakkafrost Group has 1,686 employees (full-time equivalents).

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