Pelagia Holding AS-Set for deleveraging in 2026-05/12/2026

Research evidence excerpt

Pelagia Holding AS-Set for deleveraging in 2026-05/12/2026

Pelagia Holding AS

CREDIT NEWSFLASH | 12 MAY 2026

Set for deleveraging in 2026

Pelagia reported its Q1’26 financials this morning, with EBITDA of NOK 318m, broadly in line with Q1’25 despite revenues

declining by ~NOK 700m Y/Y to NOK 3.1bn. The revenue shortfall was primarily driven by lower volumes in the FOOD

segment, while margin development was stronger than expected following a more favorable product mix, with higher

contributions from the FEED and HEALTH segments. LTM EBITDA currently stands at ~NOK 850m, well below

through-the-cycle levels, reflecting a lag effect on margins as Pelagia carried high-cost inventory into a weaker price

environment – an effect estimated by Austevoll (50% owner) to have impacted EBITDA by NOK 300–400m. As a result, net

leverage currently stands at ~8.4x, which we view as temporarily elevated. Improving fishmeal and fish oil prices,

renegotiated salmon trimmings contracts, and seasonally normalized working capital effects is expected to support

deleveraging from Q2’26. With through-the-cycle EBITDA estimated at NOK 1.3–1.5bn (vs ~NOK 850m LTM), leverage should

normalize towards ~3.5–4.0x, underpinning our constructive view on Pelagia’s credit profile. On this basis, we remain

comfortable with Pelagia’s credit profile and see pricing in the mid-300s (97%) for the bonds as fair.

• Pelagia reported Q1’26 results this morning with revenues of NOK 3,108m, down from NOK 3,793m in Q1’25, primarily driven by lower

FOOD revenues as sales volumes declined by ~16% Y/Y. EBITDA amounted to NOK 318m in the quarter, broadly flat compared to Q1’25

despite revenues being down by ~NOK 700m. The earnings resilience reflects margin expansion, with the EBITDA margin increasing to