NZ King Salmon Posts $13.8m Profit and Lifts FY26 Earnings Guidance

Strong Biological Performance Drives Profit Turnaround

New Zealand King Salmon Investments Ltd (NZX:NZK) delivered a remarkable turnaround in the six months to 31 March 2026, reporting a net profit of $13.8 million compared to a $20.8 million loss in the prior comparable period. This shift was powered by better-than-expected fish growth over the summer, lower mortality rates, and operational efficiencies, which collectively boosted pro-forma EBITDA to $17.2 million, up from $5.7 million.

The company’s revenue climbed 6% to $100.3 million, supported by a 7% increase in sales volume to 2,799 metric tonnes. Improved biological performance was underpinned by initiatives such as a new summer diet, enhanced seal protection, and increased grading of stock, which together raised average harvest weights by 12% and reduced feed conversion ratio by 15% compared to last year.

Operational Milestones Signal Growth Trajectory

NZ King Salmon marked several operational milestones that underpin its growth ambitions. The arrival of the Ronja King wellboat in late April, New Zealand’s first of its kind, is expected to add reliable farming capacity of 2,000 metric tonnes annually, translating into over $60 million in potential revenue uplift. This vessel also enables more efficient grading, site fallowing, and single-year class farming, while reducing operational risks.

Meanwhile, the company successfully installed two pilot pens at the Blue Endeavour open ocean site, New Zealand’s first consented open ocean salmon farm. Fish transfers to these pens began in late May, with harvest planned by October 2026. This pilot is a critical step towards scaling open ocean aquaculture, with harvest guidance for FY28 raised to 8,500–9,100 metric tonnes, up from 8,200–8,800 previously.

Upgraded Guidance Reflects Confidence Amid Risks

Reflecting the strong half-year performance and greater visibility into the year, NZ King Salmon’s board upgraded its FY26 pro-forma EBIT guidance to a range of $13 million to $19 million, and EBITDA guidance to $23 million to $29 million, narrowing and lifting previous market guidance. Harvest volume guidance remains steady at 5,800 to 6,100 metric tonnes, with capital expenditure forecast between $18 million and $25 million.

The company acknowledges ongoing risks from the Middle East conflict, particularly concerning airfreight availability for exports and fuel price volatility. However, the impact on FY26 has moderated as fuel surcharges stabilise and supply chains maintain continuity. This cautious optimism is reflected in the narrowed guidance range.

Sustainability and Market Development Initiatives

NZ King Salmon continues to prioritise environmental stewardship, reporting an 8% reduction in absolute carbon emissions compared to the prior period. The opening of a new feed storage warehouse at Port Marlborough is expected to reduce road transport for salmon feed by over 90%, further lowering the company’s environmental footprint.

On the market front, core regions including New Zealand, Australia, North America, and China are showing steady demand recovery following supply constraints in FY25. The company’s premium brands Ōra King and Regal have maintained strong visibility and engagement, particularly in the US and Australia, while Omega Plus targets niche pet food segments.

These developments build on the company’s ongoing investments in processing capacity at the Cloudy Bay site and the design work for a Recirculating Aquaculture System (RAS) pilot, aimed at improving freshwater capacity and fish health outcomes.

The balance sheet remains robust with net cash of approximately $43 million, supporting continued investment in growth projects without compromising financial stability.

NZ King Salmon’s 1HY26 results and guidance upgrade follow the company’s earlier FY26 earnings forecast lift in April, driven by the same strong summer fish performance and operational progress FY26 earnings forecast lift.