Dear shareholders,
2025 was in many ways unique in the history of the Blue Lagoon, but the impact of seismic activity on the company's operations was much less than in 2024. During the year, there were two eruptions, with a total of 23 days of active eruptions, compared to 121 days in the previous year. Despite that, our operations in Svartsengi only had to be closed for two days. The company's emergency response units and managers have gained impressive experience in assessing situations and responding. Although it has been a relatively long time since the last eruption in July, our staff are always prepared for the need to evacuate without notice. The Icelandic Meteorological Office has begun work on preparing a long-term risk assessment to replace the short-term assessments that have been issued regularly since the beginning of the seismic activity. With such an assessment, it can be assumed that the company's entire organization and management regarding potential seismic activity will be simplified, which will have a very positive impact on operations.
It is worth noting that there is increasingly strong evidence that the series of volcanic eruptions at the Sundhnjúkar crater is drawing to an end.
The revenue of the Blue Lagoon Company amounted to EUR 156.1 million last year. EBITDA amounted to just over EUR 29.4 million, compared to just under EUR 9.6 million the previous year. The group's operating profit amounted to EUR 6.6 million. The company's economic importance remains undisputed, as its tax footprint amounted to over ISK 4.3 billion for the year, consisting of, among other things, withholding taxes, VAT and other public levies.
Assets at the end of the year amounted to EUR 423.5 million and the company's equity totaled EUR 220.8 million at the end of 2025. The company's financial position remains solid, with an equity ratio of 52% at year-end, which must be considered good in light of the company's extensive investments and development projects last year.
As in previous years, the seismic activity had a variety of spin-off effects on the company's operations. During the year, new parking lots were built within the protective barriers to replace those that were destroyed by lava at the end of 2024. The new parking lots are somewhat larger than the previous ones and can now accommodate 450 cars or buses at a time, which is about 100 more than before. This construction was naturally costly and had a somewhat disruptive effect on our guests, but it was necessary nonetheless.
Since the company has not paid out dividends for the last 7 years, the company's financial position has enabled the management to continue its targeted and ambitious development both within Svartsengi and elsewhere in the country.
In the middle of last year, construction of a new experiential facility in the Svartsengi bathing lagoon was completed and all bathing and changing rooms were renovated and their number increased. The construction was completed in the middle of the year, but during this period, supply was significantly reduced, although the emphasis was always on doing everything possible to keep operations running and ensure the best possible guest experience given the circumstances.
Last year, the construction of the Mountain Baths at Rauðukambar in Þjórsárdalur finally began after almost 10 years of preparation. A 40-room luxury hotel will be built there, along with a bathing resort offering a scenic view of the natural gem of the Þjórsárdalur valley. As has been previously mentioned in our meetings, the Þjórsárdalur Visitor Center will simultaneously be built further up the valley, where an information center and restaurant will be operated, in addition to a cluster of small cabins and a campsite at Selhöfði. Operations are expected to begin in the spring of 2028.
The development in Þjórsárdalur is based on the same philosophy as the Kerlingarfjöll Highland Base: to combine design and nature to meet the needs of different target groups who want to visit and enjoy these unique areas.
The growth of Blue Lagoon Skincare, now called Blue Lagoon Skin Science, continued during the year both domestically and in the US market, as the company celebrated its 30th anniversary. The company had a record year in turnover. The number of resellers increased significantly in the US market and BL+ products won prestigious international awards for their unique effectiveness.
It is also worth mentioning that both the Retreat Hotel and Kerlingarfjöll Highland Base received a Michelin key last fall. Michelin keys are comparable to Michelin stars, which are one of the most prestigious awards that restaurants can receive. In that context, it should be noted that the Moss restaurant at the Retreat Hotel retained its Michelin star for the third year in a row.
The company's board of directors has, as announced at our shareholders' meeting this fall, decided to resume preparations for the listing of Blue Lagoon Company on the stock exchange. The definitive date is not yet known, but it will naturally depend on market conditions and developments in the company's operating environment.
The Blue Lagoon Company plays a key role as a leading force in Icelandic tourism.
The company's expertise and experience are put to good use in the development of a responsible and targeted structure in terms of the development of health-related tourism at national level.
As before, the objective is to support, promote and strengthen Iceland as an outstanding destination in the world of health and wellness services.
Therein lie our opportunities!
Thank you.
