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How Investors May Respond To Borregaard (OB:BRG) Stronger Q3 Earnings
- Borregaard reported third quarter 2026 sales of NOK 1,894 million and net income of NOK 295 million, and entered a long term power supply agreement with Statkraft covering about 5% of its electricity needs through 2036.
- The new Statkraft contract, signed in 2026 and starting deliveries in late 2026, adds long duration visibility on part of Borregaard's energy costs alongside its earlier 2019 agreement.
- The focus now turns to how Borregaard's investment narrative around specialty bio based products interacts with this new long term power contract.
Borregaard Investment Narrative Recap
The Borregaard story still hinges on belief that specialty bio based products can support healthy earnings over time, helped by cost savings and more efficient plants. The new Statkraft power deal gives only partial protection, since it covers about 5% of consumption, so input costs from energy, sulfur and logistics remain a live swing factor.
In the short term, the main catalyst is execution on the mix shift toward higher value BioSolutions and progress on the Sarpsborg debottlenecking and cost program. The biggest risk stays the same: pressure on margins from input costs or any further capital allocation missteps such as the Alginor impairment could undercut that thesis.
The most relevant update is the third quarter 2026 report. Borregaard generated sales of NOK 1,894 million and net income of NOK 295 million, with basic EPS of NOK 2.96. Those figures compare with NOK 1,799 million of sales, NOK 195 million of net income and EPS of NOK 1.96 in the same quarter last year.
Over the first nine months, sales were NOK 6,013 million and net income was NOK 350 million, against NOK 5,880 million and NOK 701 million a year earlier. For a catalyst driven investor, that mix of higher quarterly profit and weaker year to date earnings sharpens the focus on whether cost pressure eases and specialty volumes keep gaining share.
What The Long Term Forecasts Assume For Borregaard
Analysts frame the Borregaard outlook around a combination of steady top line expansion and a sharp lift in profitability. The base case points to annual revenue growth of 4.6% over the next three years, with profit margins moving from 2.2% today to 19.2% in three years if the mix shift toward higher value BioSolutions keeps gaining traction and cost programs deliver as planned.
On earnings, the consensus points to net profit of NOK 1.7b by 2029 compared with NOK 169.0m today. That implies an increase of about NOK 1.5b in annual earnings, even before considering the more cautious end of the range where some analysts model NOK 1.4b. These forecasts assume only a very small reduction in the share count, since expectations are for shares outstanding to decline by 0.08% per year over the next three years.
Valuation work then leans on those profit projections. At the current price, the stock is described as trading on a P/E of 88.0x today. The analyst framework uses a future multiple of 12.4x applied to the NOK 1.7b earnings estimate in 2029. That forward P/E is below the reported 42.3x for the wider GB Chemicals industry, so the implied re rating requires both higher profit and a lower earnings multiple relative to today.
Price targets reflect that mix of higher earnings and lower P/E. The consensus aim sits at NOK 173.75 per share versus a current quotation of NOK 149.2, a gap of 14.1%. For anyone reviewing Borregaard, the key question is whether the forecast margin lift, revenue trajectory and power cost visibility created by agreements such as the Statkraft contract line up with personal expectations about the business.
Borregaard's narrative projects NOK 8.9b revenue and NOK 1.7b earnings by 2029. This assumes 4.6% yearly revenue growth and an earnings increase of roughly NOK 1.5b from NOK 169.0m today.
Uncover why Borregaard's fair value indicates a 14% potential upside to its current price, which could narrow quickly.
Exploring Other Perspectives
Three fair value views from the Simply Wall St Community cluster between NOK 173.75 and NOK 211.32, so some retail investors see Borregaard as materially undervalued relative to current pricing. Those opinions were formed before the Statkraft power deal and the mixed 2026 earnings pattern, so treat them as starting points and test several alternative angles yourself.
Explore 2 other Borregaard fair value estimates, including one that suggests it could be worth just NOK 173.75.
Decide For Yourself
Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.
- A great starting point for your Borregaard research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
- See our latest analysis for Borregaard. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Borregaard's overall financial health at a glance.
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