The Navigator Company (NVG) Q2 2025 earnings summary

Executive summary

• H1 2025 turnover was €1,019 million, down 4% year-over-year, with EBITDA at €216 million, a 28% decrease, and net profit at €85 million, down 46% from H1 2024.

• Strong performance in Tissue and Packaging segments, with diversification strategy supporting stable turnover and international sales now 81% of tissue sales.

• Operational resilience maintained despite volatile pulp prices, protectionist measures, and higher energy and chemical costs.

• Sustainability leadership recognized with top ESG ratings, CDP 'A' scores, and inclusion in Sustainalytics' 2025 ESG Top-Rated Companies.

• Best ever safety performance in H1, with a 49-50% year-on-year improvement in accident frequency.

Financial highlights

• Turnover reached €1,019 million in H1 2025, with tissue and packaging accounting for nearly 30% of turnover.

• EBITDA margin was 21% for H1 2025, down from 28% year-over-year.

• Net profit for H1 2025 was €85 million, down from €159 million in H1 2024.

• Net debt stood at €676 million, up €58 million from December, after €100 million dividend payout and €94 million capex.

• Free cash flow was €42 million, a significant improvement from -€25 million in H1 2024.

Outlook and guidance

• Persistent global uncertainty, protectionism, and new U.S. tariffs expected to impact results, but opportunities exist due to North American supply deficits.

• Operational excellence initiatives launched to optimize costs, improve efficiency, and leverage AI, with a headcount freeze.

• Capex plans to be reviewed, aiming to reduce 2025 projects by €40 million and prioritize high-return investments.

• Feasibility study underway for a new tissue machine in the UK; decision expected this semester.