Borregaard, the Norwegian biochemicals company, published its second-quarter results for 2026 today, revealing that group EBITDA held steady compared to the same period last year. However, beneath the headline stability, the company’s three main business segments exhibited markedly different trajectories, reflecting broader shifts in industrial demand and raw material costs.
The Fine Chemicals division, which produces intermediates for pharmaceuticals and agrochemicals, continued to benefit from robust order books and favourable pricing. In contrast, the Lignin-based products segment, which includes bio-based binders and dispersants, faced headwinds from lower construction activity in key European markets and softer pulp prices. The Specialty Products unit delivered moderate growth, supported by demand in the personal care and coatings sectors.
For UK investors, Borregaard’s performance offers a window into the health of the European specialty chemicals sector, which has been navigating a patchy recovery. The company’s shares are listed on the Oslo Børs, but the stock is held by several UK-based institutional funds focused on sustainable materials. Analysts noted that the divergent segment trends could signal that end-user demand is not yet broad-based, with some industrial customers still destocking.
“The stable group EBITDA masks a clear divergence: fine chemicals are firing, but lignin is lagging,” said an analyst at a Nordic investment bank. “This suggests that the recovery in construction-linked markets remains tentative, while pharma and agrochemical demand is more resilient.” The analyst added that cost inflation in energy and logistics continued to pressure margins across the business, though Borregaard’s integrated value chain provided some buffer.
From a sector perspective, the results come as UK-listed chemicals peers such as Croda International and Johnson Matthey have also reported mixed trading conditions. The FTSE 350 Chemicals Index has edged up 1.2% over the past month, but remains below its 2025 highs, reflecting ongoing caution among investors about the pace of industrial recovery in Europe.