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ENCE Energía y Celulosa (ENC) investor relations material

ENCE Energía y Celulosa Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary23 Jul, 2025

Executive summary

  • Revenue reached €192m in 2Q25, up sequentially, driven by higher pulp and energy volumes despite lower prices.

  • Pulp cash cost reduced by €22 to €488/ton, with advanced pulp at 32% of sales and a target of over 62% by 2028.

  • Major growth in biomethane, renewable heating, and packaging underway, with significant EBITDA contributions targeted by 2030.

  • Fluff pulp line to be commissioned in Q4 2025, expected to boost margins by €60/ton.

  • Disciplined investment and sustainability focus, with platinum ESG ratings and strong safety performance.

Financial highlights

  • Group revenues rose to €192m in 2Q25, up 3% sequentially but down year-over-year.

  • EBITDA declined to €24m from €34m in Q1, mainly due to lower energy certificate sales and pulp price pressure.

  • Net loss of €9m in 2Q25, compared to €2m profit in Q1 and €23m profit in 2Q24.

  • Free cash flow before growth CapEx was minus €3m, impacted by working capital outflow.

  • €40m revenue from energy efficiency certificates in 1H25.

Outlook and guidance

  • Pulp prices expected to recover by year-end if trade tensions ease; current prices near marginal cost for some producers.

  • Cash cost target below €485/ton for full year; advanced and fluff pulp to exceed 62% of sales by 2028.

  • CapEx for 2025 guided at €75m for pulp and €50m for renewables, with investments tied to cash flow.

  • Fluff pulp line commissioning in Q4 2025 to drive margin uplift.

  • Renewable packaging, biomethane, and heating projects to contribute over €100m to EBITDA by 2030.

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Frequently asked questions

ENCE Energía y Celulosa S.A. produces eucalyptus pulp and generates renewable energy from biomass. The company operates pulp mills and energy plants in Spain, serving customers in the paper and energy sectors. It is headquartered in Madrid, Spain, and its shares are listed on the BME.

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