Highlights

  • FY26 pro-forma EBITDA guidance raised to $19–27 million (from $9–15 million)
  • Improved fish survival, size, and feed efficiency boosted production outlook
  • Harvest volume increased to 5,800–6,100 MT, supporting higher revenue potential

New Zealand King Salmon Investments Limited (NZX:NZK) has upgraded its FY26 earnings guidance following stronger-than-expected operational performance during the summer farming period. The company now expects pro-forma EBITDA in the range of $19 million to $27 million, significantly higher than its earlier forecast. This improvement is driven by lower fish mortality, better feed-out rates, and enhanced fish size and quality, resulting in a higher harvest volume.

Operational efficiencies have also improved due to increased biomass, lowering per-unit costs and enabling access to higher-value markets. While the outlook has strengthened, the company remains cautious about external risks, including rising freight and energy costs linked to global geopolitical developments.

What Drove the Earnings Upgrade?

The guidance upgrade was primarily supported by improved biological and operational performance. Lower-than-expected mortality rates during the summer period ensured a higher number of fish available for harvest. At the same time, strong feed-out rates and the introduction of a new summer feed diet enhanced fish growth, leading to better size and quality. These factors collectively increased harvest volumes and allowed the company to target premium markets. Improved execution at sea farms also contributed to operational efficiency, reducing costs and supporting stronger overall financial performance for FY26.

What Risks Could Impact FY26 Performance?

Despite the improved outlook, the company has highlighted several external uncertainties that could affect performance in the remainder of FY26. Rising global oil prices may increase production and logistics costs, while disruptions linked to geopolitical tensions could impact air freight availability to key export markets. These factors may pressure margins and create volatility in supply chains. As a result, the company has maintained a broader guidance range to account for these risks. Management will continue to monitor these developments closely and provide updates alongside its half-year results announcement.