Bjuv Completed and Margin Target Within Reach
Borgestad ASA (“Borgestad”, “the Group” or “the Company“) is an industrial investment company built around two market-leading assets. The first is a 69.7% stake in Höganäs Borgestad, the Nordic leader in refractory solutions, which includes high-temperature products and installation services that steel, ferroalloy and cement producers rely on, and the only independent Nordic operator spanning the full chain from production to service. The second is full ownership of Agora Bytom, a leading shopping centre in Polish Silesia generating a stable, high-margin income that anchors the Group through the cycle. With refractory revenue growth returning on a lower cost base, Bjuv completed and an extraordinary dividend of NOK 1.50 per share paid in November 2026, the case has moved from recovery to capital returns, while the property underpins the downside. On a SOTP basis, Analyst Group derives a justified value of NOK 22.6 per share (21.1) in a Base scenario.
- Strong Q3-26 Followed by Bjuv Completion and Dividend
Borgestad delivered Q3-26 revenue of NOK 374.1m, up 5.8% YoY and approx. 5% above our estimate, while Group EBITDA of NOK 72.1m was in line with our estimate of NOK 73m. Höganäs Borgestad lifted its EBIT margin to 15.9%, the strongest underlying quarter in its history according to the Company, and the adjusted LTM EBIT margin to 7.5%. After quarter-end, the Bjuv sale-leaseback was completed, releasing approx. SEK 139m over two years, and the Board resolved an extraordinary dividend of NOK 1.50 per share, a yield of approx. 8.7% and three times the ordinary dividend for 2025.
- Refractory Recovery as the Primary Value Driver
Höganäs Borgestad is the only independent Nordic refractory operator covering the full chain from production through installation and service, with world-leading niche competence within ferroalloys. Demand is returning: Q3-26 marked the first quarter of revenue growth this year, broad-based across all three countries, while larger upgrade projects remain deferred and represent the remaining recovery potential. Management considers the 10% EBIT target achievable under current market conditions through measures within its own control, including the exit of a loss-making subsidiary that has burdened LTM EBIT by approx. SEK 12m. As volumes return to a lower cost base, segment EBITDA is estimated to grow at approx. 20% per year through 2028.
- Revised Estimates: Lower Top Line, Higher Profitability
Following the Q3-26 report, we raise our refractory profitability assumptions, reflecting the exit of the loss-making subsidiary and the Company’s view that the 10% target is within its own control, while revenue is lowered as the subsidiary’s turnover falls away. The completed Bjuv transaction is reflected through the strengthened financial position, while the operational effect of the production transition is kept as upside. The key variables ahead are winter-quarter utilization, the decision on the long-term production setup and rent levels at Agora Bytom as new tenants open.
