2025 marked the second full year of operation for all four vessels operated by Havila Kystruten AS (HKY) along the Norwegian coast. The year represents a clear step forward for the Company, reflecting improved operational stability, stronger commercial performance, and the effect of targeted investments made to support long term growth.
In its second year of full operation, the fleet achieved exceptional operational uptime of 100% for the full year, up from 98% in 2024. These results are particularly strong given the operation of four new vessels and are a testament to the professionalism and dedication of the crew on board. The performance also reflects the benefits of a modern operating model, including an availability-based power by the hour arrangement with Kongsberg Maritime, which enables 24/7 monitoring and proactive technical management of the vessels.
Financially, the Company continued to build on a very positive trajectory in 2025, delivering a significant improvement in earnings and underlying operational results. EBITDA for the year amounted to MNOK 373, up from a negative MNOK 191 in 2023 (MNOK 219 in 2024). The improvement was driven by strong revenue growth, higher pricing, and continued focus on operational reliability, partially offset by increased costs related to growth initiatives and organisational strengthening.
Revenue Growth and Operational Performance
Total revenues for 2025 reached MNOK 1,775, an increase of MNOK 252 from MNOK 1,523 in 2024, corresponding to year over year growth of 17%. The increase was driven by solid demand, with passenger nights up 3% and the average cabin rate (ACR) rising by approximately 20% for the year. This reflects improved yield management and a continued positive market response to the Company’s product offering.
Fourth quarter revenues amounted to MNOK 361, compared to MNOK 403 in the corresponding period of 2024. The decline in Q4 revenues was primarily attributable to lower-than-expected occupancy, which reached 70.9% compared to 78.4% in the prior year, largely due to a delayed sales campaign for the quarter that has since been brought forward for 2026. In addition, the fourth quarter of 2024 included prior-period adjustments related to the full year rather than underlying Q4 operations. Unadjusted operational revenue growth in the quarter was approximately 7% year over year (sourced from the Company’s booking system).
Average occupancy across the fleet was 72% for the full year 2025, compared to 73% in 2024, while the cabin factor increased from 1.84 to 1.87, supporting passenger growth despite relatively stable occupancy. In Q4 2025, the cabin factor was 1.83 compared to 1.85 in the same period last year. On board sales increased by 4% year over year for the full year, while fourth quarter on board sales were slightly lower than the prior year, mainly due to the lower occupancy level in the period.
Government contract revenue was adjusted in 2025 to better reflect the underlying cost base, following the completion of a review of the calculation methodology for the coastal route contract with the Ministry of Transport and Statistics Norway. Further details are provided in Note 3.
Cost Structure and Expense Drivers
Operating expenses are largely fixed in nature, with variable costs primarily related to LNG fuel consumption. The Company does not hedge LNG prices but benefits from an annual price adjustment mechanism embedded in the government contract.
Total operating expenses for 2025 amounted to MNOK 1,402, compared to MNOK 1,310 in 2024, representing an increase of approximately 7%. Cost of goods sold increased by around 10%, mainly reflecting higher passenger volumes and general inflation. Payroll and personnel related expenses increased by 8%, driven by rightsizing of the onshore organisation (including transitioning consultants from capitalised project work to permanent operational roles) to support growth and by general wage inflation.
Other operating expenses increased by 11% compared to the previous year, primarily due to higher marketing and sales costs. In the fourth quarter, additional costs were incurred, particularly within marketing, as part of deliberate investments aimed at building higher booking volumes for future periods. These initiatives contributed to lower short-term profitability in Q4 but are already showing tangible effects in the booking levels for 2026.
Bunker and port fees increased by 2% year over year. Higher CO2 taxes were largely offset by lower spot prices for LNG and realised savings from a renegotiated bunkering agreement implemented in the fourth quarter.
Earnings and Operational Profitability
As a consequence of the developments described above, EBITDA for the full year was MNOK 373 (2024: MNOK 218; 2023: MNOK -191). EBIT amounted to MNOK 155 (2024: MNOK 5).
Fourth quarter EBITDA was MNOK 0, compared to MNOK 50 in Q4 2024, reflecting prior-period adjustments in Q4 2024, lower volumes than expected following the delayed sales campaign and increased commercial investments to support future periods.
Financing and Capital Structure
On 7 November 2025, the Company completed a reverse stock split to support more robust price formation in its shares. The split consolidated 50 existing shares with a nominal value of NOK 1.00 into one share with a nominal value of NOK 50.00, following approval by an extraordinary general meeting.
On 18 November 2025, the Company entered into a comprehensive refinancing of its outstanding debt totalling MEUR 456, which was completed on 24 November 2025. The refinancing provides a 15-year financing structure with Havila Vessel Owning AS, a wholly-owned subsidiary of the majority shareholder Havila Holding AS, offering increased stability and flexibility, including optionality for refinancing during the facility period. This refinancing significantly reduces the Company’s effective interest cost from high double-digit levels to an all-in cost of approximately 10 percent, with call options available from year three onwards. The facility consists of a senior tranche of MEUR 250, a senior tranche of MUSD 105, and a junior tranche of MEUR 116, and is established as a financial lease aligned with the Company’s revenue profile and the residual value of the vessels (see Note 10 for further details).
Currency fluctuations, particularly between the Norwegian krone and the euro, impact both results and the balance sheet, resulting in unrealized currency losses over the past years, negatively affecting book equity. The company does not hedge currency, but interest costs in EUR and USD are naturally offset by corresponding revenue streams, and vessel residual values in EUR/USD provide an additional balance-sheet hedge.
As a result, reported accounting equity amounted to negative MNOK 1,394 at year end 2025. When adjusted for the estimated market value of the vessels, value adjusted equity is estimated to be positive at approximately MNOK 2,677.
Cash and cash equivalents were MNOK 231 at year end, with free liquidity of MNOK 214 and net interest-bearing debt of MNOK 5,323. The Company remained in compliance with financial covenants.
Sustainability and Efficiency
The Company continued to make progress on its sustainability ambitions during 2025. CO2 emissions were reduced by 36% compared to the 2017 Coastal Route baseline. In addition, the Company achieved its target of reducing food waste to below 75 grams per guest per day, with an actual year end result of 65 grams.
A key milestone in the quarter was the company’s first climate-neutral voyage in November and December with Havila Polaris, demonstrating the feasibility of climate-neutral operations on the Norwegian coastal route using liquefied biogas (LBG) in combination with the ship’s large battery packs. The voyage was enabled by bunkering 200 m3 of LBG at Polarbase outside Hammerfest on 26 November, followed by an additional 150 m3 in Bergen on 30 November (350 m3 total). Calculations show actual CO2 reductions of about 92%, well-to-wake, while also eliminating local NOx and SOx emissions when operating on biogas.
Havila Kystruten’s ambition is to keep driving emissions down over time by combining highly efficient operations with a gradual transition to lower- and zero-emission energy sources as they become available at scale. Biogas represents one of the most promising near-term options because it can be used in existing gas-based solutions while delivering meaningful lifecycle emission reductions compared with conventional fossil fuels. With broader access to biogas, Havila Kystruten can further cut greenhouse gas emissions, support the development of a circular bioeconomy by using renewable waste-based resources, and strengthen the pathway toward even cleaner operations in the years ahead.
Employees
Havila Kystruten had a total of 574 permanent employees as of December 31, 2025, of which 516 were seafarers and 58 in the administration.
Subsequent events and trading outlook
Following the successful refinancing completed in the fourth quarter, the Company’s focus is to further optimise operational performance, grow revenues, and improve margins. Investments made in 2025 across sales, marketing, and organisational capabilities have strengthened the platform for 2026.
For 2026, approximately 63% of total capacity is already booked as of February, corresponding to around 80% of the annual target for cabin nights and nearly 20% higher than at the same time last year, following a successful autumn sales and marketing campaign. These early bookings provide increased visibility and support expectations of continued top line growth and improved EBITDA margins in 2026. Occupancy for the first quarter of 2026 currently stands at approximately 70%, with more than one month remaining in the quarter, compared to 61% occupancy in Q1 last year.
On the cost side, operational efficiency measures are being implemented on board the vessels to optimise restaurant operations and resource utilisation. Combined with the expected full effect of the revised LNG purchasing agreement during 2026, these measures support tighter cost control and lower cost growth than would otherwise be expected.
Demand for travel to Norway remains strong, and the Company’s modern, environmentally friendly fleet continues to be well received in the market, as evidenced by multiple international awards. The Company will continue to prioritise direct bookings, which historically deliver higher prices closer to departure, while actively balancing occupancy and pricing to optimise margins. As awareness of the brand and product increases, the Company aims to lift Average Cabin Revenue (ACR) further.
Efforts to increase on board sales will continue through targeted initiatives and product development aimed at enhancing the guest experience. The strategy of offering shorter voyages is well established and continues to be further developed. During the summer season of 2025, sales of shorter trips increased by more than 40%, confirming strong market interest. This segment offers significant potential to further increase occupancy and attract a broader and younger customer base with high willingness to pay, supported by targeted marketing and commercial initiatives.
Contacts:
Chief Executive Officer: Bent Martini, +47 905 99 650
Chief Financial Officer: Aleksander Røynesdal, +47 413 18 114
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