ArborGen predicts 25% ebitda growth, despite weak market

ArborGen has provided guidance for the financial year ending March 30, 2026, expecting year-on-year improvements in revenue and gross margin.

The company anticipates adjusted US GAAP ebitda to be at least 25% higher than the previous year, ranging from $11 million to $12m.

In the US South, market conditions are expected to remain weak until at least 2026, but sales activity will support some revenue and volume growth.

ArborGen said it is well positioned as the seedling supplier of choice for the emerging carbon market.

In Brazil, the company expects volume growth, although there may be a short-term margin impact due to excess market capacity.

ArborGen highlighted the growing eucalyptus market and high demand for pine in Brazil.

The company said it is focused on managing supply and allocation to meet demand following a eucalyptus seedling shortage caused by the 2024 drought.