Borregaard, the Oslo-listed speciality chemicals group, posted a second-quarter EBITDA that held broadly steady despite intensifying cost pressures, according to results released today. The company reported EBITDA of NOK 415 million for the three months ended 30 June 2026, compared with NOK 420 million in the same period last year, as higher raw material and energy expenses offset gains from volume growth in its advanced bio-based products segment.
The fine chemicals division, which produces intermediates for pharmaceuticals and agrochemicals, continued to perform well, with revenues rising 6% year-on-year. However, the lignin-based products unit saw margins narrow as timber costs climbed and energy prices remained elevated. Borregaard's management noted that while the group's integrated biorefinery model provides some natural hedging, the pace of cost inflation has been sharper than anticipated.
For UK investors, Borregaard's update offers a cautionary snapshot of the broader European industrial landscape. The company's shares on the Oslo Børs were trading 1.2% lower at NOK 178.50 in afternoon trade, reflecting market concerns over margin compression. Analysts at Kepler Cheuvreux commented that while Borregaard's EBITDA resilience is commendable, the lack of sequential improvement suggests that the second half of 2026 may prove more challenging if input costs do not ease.
Borregaard's performance is closely watched by UK fund managers with exposure to Nordic industrials and the wider speciality chemicals sector. The company derives roughly 15% of its revenue from the UK market, supplying products used in construction, agriculture, and pharmaceuticals. A sustained cost squeeze could therefore feed through to higher prices for UK buyers of bio-based adhesives and vanillin, though the immediate impact is expected to be modest.
The group maintained its full-year guidance for EBITDA in the range of NOK 1.6 billion to NOK 1.8 billion, but warned that achieving the upper end would depend on a stabilisation of energy markets and continued demand from European customers. With the Bank of England still monitoring inflationary pressures, Borregaard's results underscore the lingering cost challenges facing manufacturers across the continent.