ENCE Energía y Celulosa (ENC) Q2 2026 earnings summary

Executive summary

• Achieved a clear operational inflection point in Q2 2026, returning to profitability with net profit of €0.5m, driven by higher pulp prices, efficiency gains, and normalization after prior disruptions.

• Strategic focus on higher-margin special pulp, local sourcing, cost efficiency, and renewable EBITDA growth, with deleveraging as a short-term priority.

• Efficiency & Competitiveness Plan delivered €8m in annualized savings in H1 2026, with further cost reductions expected.

• Special pulp sales mix increased to 34% in H1 2026, targeting 40% in H2 2026 and over 62% by 2028.

• Renewable energy and biomethane platforms expanded, with five industrial heating projects operational by year-end and a robust pipeline for future growth.

Financial highlights

• Consolidated EBITDA reached €27 million in Q2 2026, up 16% year-over-year and €26 million above Q1 2026.

• Net profit was €0.5 million, marking a return to profitability after prior losses.

• Pulp EBITDA was €23 million (vs. €-1 million in Q1), renewables contributed €5 million.

• Total revenue for Q2 2026 was €201 million, up 4.5% year-over-year and 30.7% sequentially.

• Investments totaled €33 million in Q2, with €82 million invested in H1 and full-year CapEx guidance at €120 million.

• Net debt stood at €493 million at June-end, with €179 million in cash.

Outlook and guidance

• Full-year 2026 cash cost guidance reaffirmed at €468 per tonne, a €15 per tonne reduction vs. 2025.

• CapEx to be highly concentrated in H1 2026, with lower investment intensity and deleveraging expected in H2.

• Targeting further cash cost reduction of €15 per tonne in 2027, totaling €30 per tonne over 2026-2027.

• Special pulp to reach 40% of sales in H2 2026 and over 62% by 2028, supporting incremental EBITDA margin.

• Renewable platform aims to triple EBITDA by 2030, with five industrial heating projects operational by year-end.