The Navigator Company S.A

Latest Results (22.09.2026):

The Navigator Company S.A — Q1 2026: The group reported turnover of €426.8m, EBITDA €64.8m (15.2% margin), and net income of €17.2m for Q1 2026. Results were materially weaker versus Q1 2025 (turnover -19%, EBITDA -44%, net income -64%) and down versus Q4 2025 (turnover -11%, EBITDA -14%). Free cash flow was €28.2m, capex €42.4m and net debt €675.4m (Net Debt/EBITDA 2.08x). Performance was affected by severe weather (Storm Kristin), higher energy costs, supply/logistics constraints and lower pulp/paper availability, while Tissue and Packaging continued to grow and now represent a large share of Group EBITDA.

Key financials

Q1 2026 revenue €426.8m; EBITDA €64.8m (margin 15.2%); EBIT €22.9m; pre‑tax €15.5m; net income €17.2m. EBITDA down 14% q/q and 44% y/y; EBITDA margin down ~7 pp y/y. Free cash flow €28.2m; cash flow from operations remained positive despite heavy capex.

Sales volumes & prices

Uncoated woodfree (UWF) paper sales volumes: -16% q/q, -13% y/y. Pulp volumes: -25% q/q, -33% y/y. Tissue volumes: -1% q/q, -13% y/y. Packaging volumes: +16% q/q, +36% y/y. Navigator announced several price increases across Paper, Tissue and Packaging during Q1–Q2 to address rising costs.

Segment performance

Tissue and Packaging continued to expand and now account for ~30%+ of turnover and close to 40% of Group EBITDA, supporting portfolio resilience. Pulp (including Energy) saw lower turnover due to reduced sales volumes and lower energy sales as cogeneration increasingly supplies internal needs.

Operational drivers & disruptions

Severe weather in Portugal (Storm Kristin) caused temporary outages at Figueira da Foz and Vila Velha de Ródão, disrupting water/power and wood supply and reducing production/stocks. Higher natural gas use, additional CO₂ license purchases, import of wood and exceptional maritime logistics raised costs.

Cash, debt & financing

Net debt €675.4m (down €28m q/q), Interest‑bearing Net Debt/EBITDA 2.08x, average debt maturity 5.2 years. Navigator has €414m of undrawn long‑term facilities. Q1 included contracting a €40m EIB tranche (second of €80m) and sustainability‑linked commercial paper facilities (some unused, €35m used).

Capex and major projects

Capex €42.4m in Q1 (≈53% sustainability/environmental). Key projects: Setúbal oxygen delignification line (start up May 2026), PM3 rebuild for low‑grammage/flexible packaging, and a new Tissue machine (70,000 tpa; total ~€115m; start planned March 2028) supported by Portugal 2030 / RRP funding.

Outlook & market context

Navigator cites volatile geopolitical/energy environment but expects pulp prices and average selling prices to recover in 2026. The company has announced further price increases (Paper, Tissue, Packaging) for Q2–Q3 and points to structural market tightening from recent capacity closures in Europe/US as supportive for pricing.

Sustainability & innovation

Navigator emphasizes R&D and forestry innovation (RAIZ), 53 patent families, investment in bioeconomy and 'From Fossil to Forest' packaging initiatives. Company retained strong ESG recognition (CDP "A" scores for Climate and Forests, Sustainalytics low‑risk rating).