Good morning, welcome to Schouw & Co.'s Q1 report call. O ur Q1 delivered a very satisfying and solid start of 2026, despite continued volatility. All our companies continued to deal diligently with uncertainties. We really benefit from our experienced leadership teams and dedicated employees across the globe. Our top line was down 3% to DKK 7.7 billion, we still had high activity across the board. EBITDA, however, increased 5% to DKK 591 million. This was driven by strong day-to-day focus on optimizing at all level. Very positive to see that our EBT increased 36% in the quarter. We also continue to deleverage with a net interest-bearing leverage of 1.6 x EBITDA. Continue to manage our investments and also being very prudent on our capital allocation.
Very positive to announce to you that the next phase of evaluating an IPO of BioMar has been initiated. This morning we sent out our ITF or Intention to Float, and it was announced in the market, and now we are really looking forward to the next phase of that. With that, moving on to BioMar. BioMar performed very well and as expected in Q1. We have to remind ourself also that the Q1 is a rather small quarter due to low activity, especially in the salmon segment. Top line was down 6% to DKK 3.2 billion, but volume increased 7% to 315,000 tons. This shows also that BioMar is a company that is very dependent on raw material prices fluctuating up and down.
We really saw strong development in our shrimp segment. EBITDA was, however, up 3% to DKK 212 million. Here we experienced a solid development in salmon with a very good development in our Australia business. Shrimp profits lower due to what we call toll milling. We are building volume with large customers, and we do not yet have own capacity ready, so we need to buy in volume from other producers. Our tech segment was impacted from change of the distribution model. BioMar continued to have a focus on broad product offering and a very sharp eye on their commercial excellence strategy. Our joint ventures had a development as expected. BioMar is continuing to build a position and profitability in China.
Return on investment remains very strong, around 30%, which is very satisfying for a company like BioMar. Guidance maintains, revenue expected now, DKK 16 billion-DKK 17 billion, and the EBITDA in the range of DKK 1.52 billion-DKK 1.62 billion. I also have to note here that BioMar, they have been working hard on preparing themselves to be listed, so a lot of hard work has been going on throughout the entire BioMar organization to be ready for the hopeful next step in this, in this case. GPV, our electronic manufacturing service company, is now seeing effects from efficiency measures and footprint decisions made over several years. Top line, as expected, down 3% to DKK 2.1 billion, but the backlog is all-time high with the GPV.
EBITDA, however, was up 12% to DKK 160 million. Across the board in GPV, there's been a strong focus on customer mix and optimization, also brought in new customers and new products with a positive impact on EBITDA. GPV, they have full focus on securing critical co-components. Some components like memory chips, et cetera, has been problematic to get hold on, meaning that GPV is building inventories and sourcing at a broader level. GPV continue to prepare for future growth. They have just finished a strategic review that really confirms the potential and strategic direction of GPV. GPV maintains their guidance with a top line of DKK 8.5 billion-DKK 9 billion in 2026, EBITDA around DKK 690 million-DKK 750 million.
Of course, the availability of critical components is important for delivering on this guidance. From GPV, moving on to HydraSpecma, where HydraSpecma once again delivered a very solid and positive development all over the group. Top line was up 9% to DKK 873 million. Growth was driven by what we call the global OEM segments. The renewable division have stable level, and the order book really continues to build with HydraSpecma. EBITDA 5% up to DKK 114 million, coming from a very strong margin manage and efficiency uplift. Also need to note that in 2025 Q1, there was a positive impact of DKK 12 million from real estate sale in Poland. The underlying operational profitability is really, really, really strong.
HydraSpecma have a strong focus on future growth. They just acquired rather small Norwegian Hyco to strengthen their OEM segment. It's a small business, but it's a next step into Norway. I'd expect more also exploiting potential in the two very attractive segments, defense and data center businesses, and have seen a lot of opportunities there. Guidance maintained top line at DKK 3.1 billion-DKK 3.4 billion. EBITDA maintained in the range of DKK 400 million-DKK 440 million. Moving on to Borg Automotive. Borg, they are in full implementation of a major recovery plan. We call it Refine for Future. Top line as expected, down 12% to DKK 444 million. We still see soft markets and low demand, but also experience certain segments starts to recover. EBITDA was down 58% to DKK 13 million as expected.
We had a negative effect from Refine for Future initiatives driving costs to reap benefits later in 2026. Our [ new -man] business, as we call it, really started to recover and now show profitability. The transformation of Borg, it's really in good progress. There has been a lot of hard work around the organization to relocate production and supply chain. Full focus on sharpening a market and a commercial strategy, and we are still expecting DKK 100 million of savings because of implementing the Refine for Future plan. Borg maintains also their guidance top line's DKK 1.6 billion-DKK 1.9 billion expected now, and EBITDA in the range of DKK 60 million-DKK 100 million. Looking into Fibertex Personal Care.
Fibertex Personal Care really facing increased volatility due to the Iran-U.S. situation. Top line decreased, as expected, 9% to DKK 404 million. Market conditions, particularly in Asia, remains tough and fierce. Fibertex Personal Care is really having a lot of activities to mitigate the situation. EBITDA was down 5% to DKK 47 million. Here we coming from effect from lower volumes and also raw material fluctuations. The print business once again showed solid margins. Fibertex Personal Care really have full focus on day-to-day operations. It's important for them to secure raw materials at the best possible prices, but also to be certain that we can have access to raw materials. Full focus on delivering a contracted volume to core customers.
Fibertex Personal Care have been working a lot with developing new customers and selling innovative products into the market. Guidance maintained despite the volatility. Top line DKK 1.5 billion-DKK 1.7 billion expected, and EBITDA now DKK 140 million-DKK 160 million. Moving on to the last business in our portfolio, Fibertex Nonwovens really delivered a strong profitability uplift in also very challenging markets, but super nice to see that they continue to grow. Top line increased 10% to DKK 638 million. Growing volumes both in the U.S. and in Europe. EBITDA was up 48% to DKK 64 million. A strong effect from improved efficiency in our U.S. operations and also professionalization of setup delivers a really huge uplift.
Now we also see that the large investments we made over several years really starts to pay off. Fibertex Nonwovens, they are well prepared to continue to grow both volume and profitability in future. New spunlacing line, as we called it, is started to be implemented in the Czech Republic. We expect the production, commercial production to take off during second half of 2026. A lot of very innovative new products being introduced to the markets, and we also see strong requests from Tier 1 customers really wanting to cooperate at a rather large scale. Fibertex Nonwovens maintain their guidance top line DKK 2.3 billion-DKK 2.5 billion expected, and EBITDA is still DKK 210 million-DKK 240 million.
With Fibertex Nonwovens, we need to take into consideration that raw material and energy prices still continues to fluctuate. Let me finish off just looking at the overall guidance for Schouw & Co. as a group. Full year guidance maintained. We expect the turnover to be in the range of DKK 33 billion-DKK 35.5 billion, and EBITDA DKK 2.9 billion-DKK 3.2 billion. Of course, all companies solid focus on delivering within their guidance. I think with that note, I will open up for questions.
Wei from ACP.
Wei from ACP.
Yes. Thank you for taking my questions. I have plenty of questions
Yes
for you today.
You're most welcome. Yeah.
Thanks. I start with BioMar. Now you announced the Intention to Float.
Yeah
Given the elevated American economic uncertainty and also the stock market
Yeah
and so volatile, what makes you confident to pursue the IPO amid such sort of volatility?
No, thank you for asking that, Wei. As I think we have been looking at a lot of different factors, and I think when we conclude on all of them, we see that the things has been more stable. I think most important, not the most important one, but you also know the VIX indicator now really is quite positive. We also have been talking to a lot of investors looking for investing in stable companies. So we think the window is there, and we think also it's time for BioMar now to take the next step. So we are quite optimistic on going to the market with BioMar and believe that timing is right.
Okay. Great. Could you also remind us the use of proceeds?
Yes. I think we have said several times that we have a strong business model within Schouw & Co. We continue to invest in new companies. You could say we have two ways of investing. One is to continue to develop the companies in the portfolio, as what we call bolt-on investments. We've been doing that over years. Then, of course, also looking for new platforms, investment. Of course now more focused on finding a new platform investment and then really pushing hard on our companies to come up with ideas for value creating bolt-ons.
That's the two things, continue our model and, of course, be patient because we should not just buy for buying a company. We need to do the right things and continue to create value. That's the strategy, and we see plenty of opportunities out there.
Okay. I understand that the platform you mainly refer to the [shearing pen are] the specialist segment?
We have a very clear investment strategy.
Mm-hmm
W e are investing in business-to-business companies. That's what we are looking into now and really continue that because that's where we have our strengths. We know a lot about running a business-to-business companies, need to be international oriented, need to have a strong position in the market, et cetera. That's just continuing our strategy and really pushing on that.
Okay. Thanks. Next question. You have already talked a bit about, yeah, the capacity expansion in Ecuador.
Yeah.
Can you give update on that? Now it's sort of dilute, I understand diluted, the shearing EBITDA
Yeah
here in Q1. What would be the expectation for Q2 and the remaining of the year?
Some of the capacity will kick in later in the second half of 2026, so we'll still need some toll milling, but there's a lot of things. One thing is toll milling, but also, you know that also, Wei, that of course product mix, things like that
Yeah
means a lot for BioMar, and it is a rather small quarter. We expect things to improve product mix to be a little bit different. We need capacity kicking in late 2026, and then we will see improved profitability and margins on that.
Great. Thank you. I jump back to the queue.
Thank you very much, Wei. Jesper Lund, welcome. Are you muted, Jesper, or? Maybe he's not. Next one then, Kasper.
otherwise, Wei is.
Wei, you are, please, you are on the line again, so yeah.
It seems that I need to moderate the Q&A session today.
No. That's super nice. Thanks for doing that, Wei.
Next question may be in, a bit nitty-gritty.
Yeah.
Looking at the income from associated companies, this quarter it shows a decline. You have kept full year guidance unchanged. Was there only any quarterly phasing of the revenue income?
Yeah. There is a lot, there's a lot of things that can fluctuate in that. You know, we have BioMar regulations. We have a price setting of especially our farming set up in Kilsund, Moelis, Australia, and so on. There are things that fluctuates. Looking into forward-looking on salmon prices and so on, we still expect to keep the guidance. Within the quarter, things can fluctuate. Yeah.
Clear. Then on the tech revenue income, I know it is project-based, but you showed.
Yeah
year-over-year decline here.
Yeah.
What visibility do you have for the remaining of the year?
Yeah. Just to make that understandable is that we made a totally new distribution model, meaning that we closed the cooperation with a big distributor in one of our very big markets, and they had materials in stock and things like that. They are selling out of that, and we are moving from doing the distribution more on our own and then also moving into a so-called SaaS model. A lot of things is going on, but we expect and we really see strong opportunities and the right choice of model in future.
Can you comment on what is the initiatives by doing the direct distribution?
It's more that we go direct, try to link it a little bit more also on feed sales and things like that. It's rather complex that we try to build more share of wallet with the large customers, et cetera. We can use that also for getting attractive fee contracts and so on.
Okay. That's clear. Thank you.
Thank you, Wei.
From Jostein Matre.
Yeah, Jostein, welcome.
Hi. Thank you for that. I'm Jostein Matre, and I'm a journalist with IntraFish.
Yeah
I apologize for coming in a little bit late to this conference.
It's okay.
My question might be something that you've already spoken about.
Yeah, yeah. Yeah.
Can you tell me a little bit, because the IPO with BioMar has been on the tables for a while now. Can you tell me a little bit about why now feels like the right time to do what you're doing?
Yeah. The reason why it has been on the table for a while is, of course, it takes a long time to prepare a company for becoming listed, and BioMar was not listed, so it has taken a very, very long time, and not very long time, but the time it has taken to prepare and do things, so that's the way it has been doing. Of course, we expected it maybe to have been out with the Intention to Float a little bit earlier, but then a lot of volatility in the world came up, and then we are in a situation where we do not need to do the listing of BioMar, but we do think it's the right thing.
We looked into when it's the best value creation also for Schouw & Co. as a shareholder and when is the best timing for bringing such a great company to the market. That's the reason behind.
Just one quick follow-up then. What is your expectations going forward now then?
Yeah. Now we have launched what we call this Intention to Float. That means, of course, that we are one step closer to the IPO. Now we will use some weeks to look into the market and get feedback from the market. You can also see now all analyst reports, they are in the market. We are talking to shareholders, really getting a feel on who is interested, or potential shareholders, who is interested in buying, et cetera, et cetera. Within a few weeks, we will decide 100% if we are floating. That's the phase we are in now. Things are much closer, and still intention, as we have said it over a long time, our intention is to float in the first half of 2026.
As we are in May now, the time is closing in. We do it if it is right.
Is it, is that enough time?
Yeah, yeah, absolutely. There's a clear timeline now on how to do that. Yeah.
Thank you.
Thank you for the question. Jesper Lund, we try with you again.
Let's see if it's still if it works here from Vietnam. Can you hear me?
Yes, we can.
Okay. It's also about BioMar. I was thinking, as many probably also do, can you tell me something about the, how many times EBITDA a company like BioMar can be sold at? Also, how many percent do you minimum keep of the company after listing it?
Yeah, very, very interesting questions. One, we do not really comment on this. I think you should look into the analyst's report and see what they are saying. We have not decided the size what we are selling yet, depending also on what will come out of the next three weeks' investigations we are doing in the market. That's as it is now. I think look into the analyst's report and there are some indications on what they think a company like BioMar should be traded at.
Many thanks, Jens.
Yeah. Thank you very much.
Thank you.
Okay. Yeah, we have one more. Thanks.
Wei,
you're welcome.
Yeah, thanks. Now I change topic.
Yeah.
A question on the GPV. You talked about higher level of order intake in Q1. What end market was driving that momentum? Also, if you can comment a bit on the supply chain risk and also the cost inflations.
Yeah. The order intake has been driven by a better, more optimism or what you say with some of our core customers. We are supplying a very big, blue chip customers around the globe. They have a more positive outlook. We are also looking much more into the data center segment, which you could say, in fact, they are exploding. We see business coming in also from supplying into data centers and so on. We are well-positioned in growing segment. That's the reason behind.
Looking into the supply situation on chips and so on, it has been difficult and still difficult, and I don't really have a very clear answer on it more than, we have been in these situations before. We are used to handle it, and we have, you could say, all man at deck to try to get a grip on it. I think that we are in a good situation. Prices are increasing. We can pass on most of these increases to our customers due to our contracts and so on.
Okay. Can you elaborate a bit on your exposure, the revenue exposure to the data center segment?
Our exposure is that we, looking into GPV, they are into data segment, HydraSpecma. That's the two companies that are really seeing opportunities in supplying data center. You see GPV supplying electronics for that, and HydraSpecma they are into cooling and lubrication and so on in the data center. We see a lot of interesting opportunities, and we are really pursuing, and we. For the time being, we're calling, we're talking about the two Ds as a Data center and Defense, and we really need to push and explore ourself into these segments.
Okay. You have not answered my question.
Yeah.
The revenue exposure.
Sorry.
Is it yeah. Can you.
Yeah. No, we
specify
we cannot, we are not disclosing that for the time being. Revenue is not significant, but it's increasing. Wei, sorry for that. That's the way.
Okay. Great. Thanks.
Thanks.
Last question on the Fibertex.
Yeah.
I realize that the raw material is could be relating to the plastic
Yeah
which, we see a lot of price volatility.
Yes
Now it's more in big inflation. How much of your raw material exposed? Can you also comment on this?
Yeah. As a all, if we take Fibertex Personal Care, the one that is most exposed.
Mm-hmm
A ll their raw materials, they are exposed. They use one, more or less one raw material, called polypropylene, 100% oil based.
Mm-hmm
We are, we're dependent on two price settings. One is in Europe, and the other one is in Asia. one is in euro, one is in dollar. The price has really exploded. If we take the EUR pricing in Europe, then, price used to be around EUR 1,200 per tons. It's now around EUR 2,200 per tons, and so on, so of course, heavily exposed. The good thing is that we have, pass on mechanisms to all our customers.
Of course, we are always lagging a little bit after when things are increasing, like hell to say it so, but we have changed and been able to change the way we can, we can do these pass on, so we are moving from a quarterly basis to a monthly basis now. We are exposed, but what we are most concerned on is not the pricing, of course also, but we are more concerned about availability of raw materials. That's how we see it now.
Okay. Just looking at your suppliers, I mean, what is risk that you cannot get a supply?
Yeah, of course there's a risk. I think also, yeah, but it's a interesting question. We are thinking about that every day. I think we have been in the business for so many years. We have been together
Mm-hmm
with these, large suppliers for many years. Of course, at the end of the day, they will find way of distributing it, et cetera. It is cumbersome for the time being. So far, knocking wood a little bit, we have been able to have the needed supply.
Okay. Fair enough. Last question.
Yeah
On your cash flow, which was a bit weaker this quarter, and then I can see it's due to the working capital.
Yeah.
Can you also elaborate a bit on the dynamics and any change for your full year expectation?
Yeah. As you know, again, as you said, for a quarter, the cash flow can be up and down, we have also built a little bit in net working capital and so on. We still expect to deliver quite significant cash flow in 2026, really now we're getting into the season where we start to build cash flow. Still no concerns on our cash flow situation throughout 2026.
Okay. Thank you.
Thank you very much, Wei. Thank you for the questions. Okay. Thank you very much. Thank you for listening. Thank you for the questions, and goodbye from Aarhus.