Shares in M Vest Water (MVWM) fell 10.6%, or $0.80, to $6.75 after the Norwegian water treatment company presented its second-quarter 2026 results on September 15.
Revenue for the quarter reached NOK 9.9 million, supporting year-to-date sales of NOK 15.7 million, up 27% from the prior year period. Annual recurring revenue grew 36% year-over-year in the quarter. Executive Chairman Tor Olav Gabrielsen said the aquaculture segment has become a profitable standalone business with strong visibility into customer needs, driven by the compliance timeline.
Aquaculture contributed more than 80% of second-quarter revenue. The company secured its first order from a newly built salmon slaughterhouse—its third and largest facility—and expects production ramp-up in the second half of 2026. EU regulations require all 45 Norwegian salmon slaughterhouses to meet Best Available Techniques Associated Emission Levels between 2028 and 2030. M Vest Water estimates the compliance cycle could generate NOK 100 million to NOK 150 million in annual recurring revenue, backed by NOK 300 million to NOK 500 million in total industry investment. The company targets a 70% market share by 2030.
In oil and gas, NORWAFLOC consumption and recurring volumes rose at SAR Mongstad. A strategic pilot project at Saudi Arabia's Safaniya Oil Field—described as roughly 30% the size of the entire Norwegian Continental Shelf—was postponed because of regional geopolitical instability, with equipment left on-site.
In dredging, M Vest Water completed a long-term pilot project with German operator METHA and entered commercial negotiations. Its inorganic hybrid coagulant product is designed to replace synthetic chemicals so that treated sludge can be reused in landfill and landscaping applications.
Losses narrowed. Second-quarter EBITDA was a negative NOK 1.7 million, compared with negative NOK 2.7 million a year earlier. First-half EBITDA widened less quickly at negative NOK 6.4 million versus negative NOK 7.3 million in H1 2025. Cash burn fell to NOK 7.5 million in the first half from NOK 12.2 million a year earlier.
Total assets rose to NOK 62.1 million from NOK 48.0 million a year earlier. Equity ratio declined to 39% from 45%, and book equity stood at NOK 24 million, above a NOK 20 million minimum covenant requirement. A bank credit facility provided NOK 8 million in capacity, of which NOK 4 million was drawn at quarter-end. Shareholder loans totaled NOK 6 million of an NOK 10 million facility and mature in February 2027.
The company said it expects full-year 2026 revenue to exceed NOK 30 million. The stock trades approximately 23% above its 52-week low of $4.98 and 27% below its 52-week high of $9.20.
Historical milestones in the company's NORWAFLOC product line include a 25% substitution test in 2022 and a technological breakthrough achieving 100% substitution in 2024.
