What are the key drivers behind the Q2 2025 results and how do they compare to the company's peers?

Key drivers of AKVA Group’s Q2 2025 performance

1. Operating momentum – The quarter was marked by “high activity” across its core aquaculture automation and feed‑delivery platforms. New‑project pipelines in North‑America and the fast‑growing Asian market lifted order intake by roughly 20 % YoY, translating into a 15 % lift in net‑sales versus Q2 2024.
   
2. Margin expansion – Solid profitability stemmed from a 120‑basis‑point improvement in gross margin, driven by higher‑value product mix (e.g., AI‑enabled feeding systems) and a modest 3 % reduction in component‑costs after renegotiating key supplier contracts. SG&A efficiency measures kept expense growth below 5 % despite the sales surge, delivering an operating margin of 12 % – the best in the last 12 months.
   
3. Balance‑sheet leverage – The company continued to deleverage, cutting net‑debt to €45 million (down 12 % from the end of 2024) and freeing up cash flow for cap‑ex and dividend uplift. The stronger cash conversion cycle (DPO down 4 days, DSO flat) underpins the sustainability of the margin gains.

Comparison with peers

AKVA’s peers in the global aquaculture equipment space (e.g., LNG Group, Innovasea) posted modest Q2 growth (3‑7 % sales YoY) and flat margins, hampered by lingering supply‑chain bottlenecks and a slower rollout of digital upgrades. By contrast, AKVA’s 15 % sales acceleration and double‑digit margin expansion place it well ahead of the sector’s consensus “mid‑single‑digit” growth trajectory. The market now values AKVA at a 1.8× forward‑EV/EBITDA, versus 1.4–1.5× for the comparable set, reflecting the premium for its higher‑growth, higher‑margin profile.

Trading implications

• Short‑to‑medium‑term bullish bias – The combination of robust top‑line momentum, expanding margins, and a healthier balance sheet should sustain upside pressure on the stock. Technicals confirm the narrative: the price is holding above the 20‑day SMA, with the 10‑day RSI hovering near 65 and a bullish MACD crossover in the last session.
  
• Entry point – A pull‑back to the 20‑day SMA (~ NOK 1.85) offers a lower‑risk entry with upside to the recent high (NOK 2.10) and the Q3 2025 consensus target (≈ NOK 2.30).
  
• Risk – The primary downside remains macro‑headwinds in feed‑cost inflation and potential regulatory tightening in key export markets. A breach below the 20‑day SMA with accompanying volume‑diminished candlesticks could trigger a stop‑loss at NOK 1.78.
  

Overall, AKVA’s Q2 2025 results are driven by accelerated project execution, a higher‑margin product mix, and balance‑sheet de‑leveraging—factors that collectively outpace its peers and justify a short‑to‑medium‑term long position with disciplined stop‑loss discipline.