Lerøy Seafood Group (LSG) reported drops in operational EBIT during Q2 2026 but said strong biology, lower farming costs, and improved cash flow are strengthening the company's outlook.
The Bergen, Norway-headquartered seafood firm reported NOK 574 million (USD 61.5 million, EUR 52.7 million) in operational EBIT in Q2, which was down from the NOK 680 million (USD 72.9 million, EUR 62.4 million) reported in Q2 2025. The firm largely attributed the decline to lower harvest volumes and weaker margins in its Market Operations division (previously referred to as its VAPS&D division), following an exceptionally strong performance last year.
According to LSG’s Q2 report, the company’s Farming division reported operational EBIT for the quarter of NOK 236 million (USD 25.3 million, EUR 21.7 million), compared to NOK 256 million (USD 27.4 million, EUR 23.5 million) a year earlier, as salmon and trout harvests fell 8 percent to 44,747 gutted weight tons (GWT).
Despite the lower harvest, CEO Henning Beltestad explained while delivering the company’s results that LSG is experiencing strong biological performance and declining costs quarter over quarter in its Farming arm while also delivering strong cash flow.
Beltestad also noted that survival rates remained high during the three-month period and the company achieved high harvest weights of 4.8 kilograms.
Therefore, the company is maintaining a 2026 Norwegian harvest guidance of 195,000 GWT, with the forecast increased for Lerøy Aurora in Northern Norway and reduced for Lerøy Sjøtroll because of lower growth resulting from very low sea temperatures.
Including its 50 percent share of Scottish Sea Farms, the firm’s total 2026 harvest is expected to reach approximately 217,000 GWT.
LSG’s Market Operations segment generated Q2 operational EBIT of NOK 269 million (USD 28.8 million, EUR 24.7 million), which was down from NOK 351 million (USD 37.6 million, EUR 32.2 million) in Q2 2025; however, its EBIT margin improved to 3.5 percent from 2.4 percent quarter over quarter.
Lerøy attributed the EBIT decline to less favorable contract positions, lower volumes, and a stronger Norwegian krone but said it expects a significant improvement in profitability during the second half of the year.
“Running into the summer, we’ve seen that the demand is increasing, with higher prices than last year,” Beltestad said.
Looking ahead at its aquaculture operations, the company expects global salmon and trout supply growth to slow significantly in the second half of the year following several quarters of strong expansion. With demand continuing to grow across most major markets, Lerøy also anticipates the market will gradually tighten.
“We enter the second half of the year with a strong biological status, and we believe this will continue,” Beltestad said. “[Our] cost reduction program is progressing as planned, and this will significantly reduce the impact of higher feed prices, which is expected in 2027. With our expected harvest volume of 195,000 GWT this year, together with the biological improvements we are making in the Farming value chain, we believe we are on track to achieve our long-term goals.”
Meanwhile, the company's Wild Catch division delivered Q2 operational EBIT of NOK 140 million (USD 15 million, EUR 12.9 million), which came in slightly below the NOK 148 million (USD 15.9 million, EUR 13.6 million) recorded for Q2 2025, despite a 6 percent increase in catch volume to 18,779 metric tons (MT).
For the first half of 2026 overall, though, with prices more than compensating for lower quotas and higher fuel costs, the segment’s operational EBIT increased 24 percent to NOK 368 million (USD 39.4 million, EUR 33.8 million).
Beltestad said this turnaround was “very good to see,” with the improvements made in the whitefish business “really starting to show results.”
To reflect this, Lerøy has raised its 2026 Wild Catch EBIT guidance to NOK 400 million to NOK 450 million (USD 42.8 million to USD 48.2 million, EUR 36.7 million to EUR 41.3 million), increasing from NOK 350 million to NOK 400 million (USD 37.5 to USD 42.8 million, EUR 32.1 to EUR 36.7 million) previously.
“Prices are significantly up year over year, while there are clear operational financial improvements in land-based industry and a significant inventory built up in the quarter,” Beltestad said. “It’s been a very good performance in the Wild Catch segment and a positive outlook going forward.”
