Strong Faroese performance lifts operational EBIT - improved market outlook

The Bakkafrost Group delivered a total operational EBIT of DKK 273 million (DKK
65 million) in Q2 2026

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

Strong biological performance, 67% higher harvest volumes and lower ring-side
costs in the Faroe Islands drove the improvement. Scotland remained impacted by
low harvest volumes and challenges in one batch of fish, while demand remained
strong and the supply outlook for the second half of 2026 became more balanced.

The performance in Q2 2026 per region was as follows:

  · Faroe Islands         Revenues of DKK 1,613 million (1,144 million)

                               Operational EBIT of DKK 411 million (211 million)

  · Scotland                 Revenues of DKK 213 million (431 million)

                            Operational EBIT of DKK -139 million (-146 million)

Commenting on the result, CEO Regin Jacobsen said:

Overall, we are satisfied with the clear improvement in operating performance in
the second quarter. The Group delivered operational EBIT of DKK 273 million,
compared with DKK 65 million in the same quarter last year. Cash flow from
operations also improved significantly to DKK 273 million.

The result was driven by strong biological and operational performance in the
Faroe Islands. Harvest volumes increased by 67%, average harvest weights
remained high, and farming costs at site declined. This reflects the value of
good biological control, disciplined operations and our integrated value chain.

The Faroese freshwater operations maintained high production and capacity
utilisation, transferring 5.6 million large, high-quality smolt during the
quarter. An important milestone was reached at the new hatchery in Skálavík,
where the first eggs were introduced in June.

The salmon market remained challenging. Global supply increased by 7%, partly
reflecting inventory movements, and salmon prices declined materially from the
first quarter. Demand, however, remained solid across our main markets. With
supply growth expected to slow materially in the second half of 2026, the market
balance is expected to improve.

Exceptional inflation in feed raw material costs requires adjustments to
sourcing and feed formulations. Our strong inventory position and integrated
value chain give us greater flexibility to manage these conditions. They do not
eliminate our exposure to raw material inflation, but they strengthen our
ability to secure supply, adapt formulations and mitigate the impact.

We are not satisfied with the result in Scotland. Harvest volumes were
substantially lower, and biological challenges affecting one batch of fish
originating from externally sourced smolt had a significant impact on the
result. Although these challenges were concentrated in this batch, biological
performance at most other sites was stable.

Applecross continued to ramp up production, and the result from our Scottish
freshwater operations improved year-on-year.

Our priorities remain unchanged: strengthen biological control, improve cost
efficiency and restore stable production volumes in Scotland, while maintaining
disciplined execution of our investment programme. We maintain our 2026 harvest
guidance of 117,000 tonnes.

During Q2 2026, the FOF segment sourced 109,431 tonnes (159,951 tonnes) of raw
material. The Operational EBIT margin was 20% (13%), and fish feed sales
amounted to 37,386 tonnes (37,533 tonnes).

For H1 2026, the FOF segment's operational EBIT margin was 18% (13%). During H1
2026, Havsbrún sourced 160,630 tonnes (269,453 tonnes) of raw material.

In Q2 2026, the Freshwater segments in the Faroe Islands and Scotland
transferred a total of 9.5 million (6.4 million) smolts combined:

  · Freshwater FO:   5.6 million (5.4 million),
  · Freshwater SCT: 3.9 million (0.9 million).

For H1 2026, the freshwater segments have released a total of 14.4 million (10.1
million) smolts:

  · Freshwater FO:  9.5 million (8.6 million),
  · Freshwater SCT: 4.9 million (1.5 million).

In Q2 2026, the Freshwater FO segment made an operational EBIT per kg
transferred smolt of DKK 34.13 (DKK 33.80), corresponding to NOK 50.01 (NOK
52.88). The Freshwater SCT segment made an operational EBIT per kg transferred
smolt of DKK -55.81 (DKK -464.58), corresponding to NOK -81.78 (NOK -726.77).

The Farming segments achieved higher prices in Q2 2026 than in Q2 2025. The
Farming segments had higher volumes in Q2 2026 compared to Q2 2025. In Q2 2026,
the Farming SCT segment had incident-based costs of DKK 31 million (DKK 39
million).

The total combined harvest in Q2 2026 of the farming segments in the Faroe
Islands and Scotland was 29,894 tonnes gutted weight (23,054 tgw):

  · Farming FO:    26,749 tgw (16,020 tgw),
  · Farming SCT:    3,145 tgw (7,034 tgw).

In H1 2026, the farming segments have harvested a total of 61,231 tonnes gutted
weight (48,254 tgw):

  · Farming FO: 51,888 tgw (34,934 tgw),
  · Farming SCT: 9,343 tgw (13,320 tgw).

In Q2 2026, the Farming FO segment made an operational EBIT per kg of DKK 4.06
(DKK 0.24), corresponding to NOK 5.96 (NOK 0.37). The Farming SCT segment made
an operational EBIT per kg of DKK -44.26 (DKK -18.13), corresponding to NOK
-64.85 (NOK -28.36).

The Services segment made an operational EBIT per kg of DKK 1.19 (DKK 0.74),
corresponding to NOK 1.74 (NOK 1.16). The operational EBIT margin for the
segment was 15% (8%).

The Sales & Other segment had a revenue of DKK 2,955 million (DKK 2,198 million)
and an operational EBIT margin of 4% (4%). The operational EBIT per kg was DKK
3.82 (DKK 4.19), corresponding to NOK 5.60 (NOK 6.55).

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) was paid out in May 2026.

OUTLOOK AND OPERATIONAL PERFORMANCE

Market

Increased supply in Q2 2026

The supply of salmon increased 6.7% in Q2 2026 compared to Q2 2025, including
inventory movements. Without inventory movements, the supply increase was 3.3%,
according to the latest estimate from Kontali Analyse.

Slightly lower salmon prices in Q2 2026

Salmon reference prices (in NOK) for 4-5kg superior salmon were 0.6% lower this
quarter compared to Q2 2025. Compared to previous quarter (Q1 2026) prices were
15.7% lower in this quarter.

Tighter supply in H2 2026

In H2 2026, the global harvest is expected to decrease around 1%, compared to H2
2025. Including inventory movements, the global supply is expected to increase
around 2% in H2 2026. For the full year 2026, the global supply is expected grow
around 2-3%, excluding inventory movements and around 6% including 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 biological
performance in Q2 2026. The biomass at sea remains strong and healthy, supported
by robust fish health and stronger growth. Sea lice levels remain well managed
through Bakkafrost's dual-freshwater treatment strategy.

The continued transition towards larger, high-quality smolt is contributing to
shorter farming cycles and improved production efficiency. At the same time,
more efficient management of fallow periods is supporting better utilisation of
farming sites and further shortening the overall production cycle. These
developments strengthen biological control and provide a solid foundation for
continued operational performance and future harvest volumes.

Freshwater Faroe Islands

The Faroese freshwater operations continue to increase production and capacity
utilisation across the hatcheries, supporting higher output of large, high
-quality smolt and improved production efficiency.

Also, broodstock production capacity has been expanded, with further expansion
ongoing. This will increase Bakkafrost's capacity to produce own eggs for
internal use and strengthen control over the biological value chain.

Operations at the new hatchery in Skálavík have commenced, with the first eggs
introduced in June 2026. The facility is being brought into production
gradually, with the first output of smolt expected towards the end of 2027. Upon
completion, the hatchery will increase total smolt production capacity in the
Faroe Islands to approximately 24.4 million smolt at 500g, compared with the
current capacity of around 18 million.

Farming Scotland

The operation in Scotland is affected by low harvest volumes in 2026, which is a
result of the chosen de-risking strategy while the capacity to produce large,
high-quality smolt is established. In the marine farming operation, biological
performance in Q2 2026 was overall stable. Most farming sites developed well
during the quarter, although biological challenges affected a specific batch of
fish at the Sgian Dubh and Ardyne farming sites. The affected fish at these
sites originated from the same batch of externally supplied smolt.

Bakkafrost remains focused on maintaining strong biological control and cost
discipline across the Scottish operations. A central priority remains the
continued transition towards large, high-quality smolt, which is expected to
provide a stronger biological foundation through shorter marine production
cycles, improved fish robustness and reduced biological risk.

The transformation of the biomass at sea will continue during 2026, with the
benefits from the increasing share of large, high-quality smolt expected to
become increasingly visible from 2027 onwards.

Freshwater Scotland

The ramp-up of the Scottish freshwater operation at Applecross continues, with
focus on biological stability, operational predictability and consistent
production of large, high-quality smolt.

Smolt stocking developed well during Q2 2026, and the operation remains on track
to deliver the planned full-year smolt transfer target. The continued ramp-up at
Applecross is an important element in building a stronger biological foundation
for the Scottish marine farming operations.

In Q2 2026, the average weight of transferred smolt from Applecross in Scotland
was 219g, which is 10% lower than in Q2 2025. The average smolt weight for all
Bakkafrost's smolt release in Scotland in the quarter was 137g, which is 19%
lower than in Q2 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.

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.

Million smolt transferred  '26e  '25   '24   '23   '22   '21
FO                         20.0  18.7  17.1  14.2  14.4  14.4
SCT                        10.0   7.3   6.0   9.0  11.0  11.1
Avg. weight (g)
FO                          440   453   410   396   345   376
SCT                         179   154   109   117   107    95

Harvest

In 2026, the harvest in the Faroe Islands is expected to be around 97,000 tonnes
gutted weight. The expected harvest in Scotland is around 20,000 tonnes in
Scotland, giving a 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:

Region  Q1   Q2   Q3   Q4
FO      26%  28%  22%  24%
SCT     31%  16%  19%  34%

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.

Feed raw material prices have increased, putting upward pressure on production
costs. However, Bakkafrost has the flexibility to adapt feed formulations to
changing market conditions. Its current fishmeal inventory is sufficient to
support feed production into Q2 2027.

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 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.

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 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 Q2 2026 report and the Q2 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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