The Navigator Company (NVG) Q2 2026 earnings summary

Executive summary

• H1 2026 performance was impacted by adverse weather, operational constraints, and geopolitical uncertainty, but underlying business performance improved with strong pricing recovery, efficiency gains, and cost optimization across all segments.

• Strategic investments in efficiency, sustainability, and diversification advanced, including major projects in tissue and packaging, supporting long-term competitiveness and growth.

• Net debt reduced by €10 million, with Net Debt/EBITDA at 2.29x and a strong financial position maintained.

• Diversification into Tissue and Packaging segments strengthened resilience, with Tissue now 25% and Packaging 6% of turnover.

Financial highlights

• H1 2026 turnover was €869 million, down 15% year-over-year; EBITDA reached €143 million, down 34% year-over-year but up 21% quarter-over-quarter.

• CapEx in H1 2026 totaled €127 million, with 57% allocated to sustainability and ESG projects.

• Free cash flow for H1 2026 was €10 million, down from €42 million in H1 2025, impacted by high CapEx and operational constraints.

• Liquidity stood at €590 million, with €179 million in cash and €413 million in unused credit facilities.

• Net debt at June 30, 2026 was €693 million, with a net debt ratio of 2.29x and average cost of finance at 2.9%.

Outlook and guidance

• CapEx in H2 2026 and 2027 expected below H1 2026 levels, supporting stronger cash generation.

• Pulp prices in Europe expected to strengthen and stabilize, with limited new capacity and delayed projects; average 2026 prices should exceed 2025.

• Paper and tissue prices anticipated to rise in Q3, with ongoing capacity rationalization and strategic consolidation supporting market balance.

• EBITDA margins targeted to improve in H2, aiming for 23.5%-24% (excluding U.K. operations), though dependent on pulp price trends.

• Packaging and Tissue segments expected to see continued demand and price increases, with efficiency programs offsetting cost inflation.