The Navigator Company (NVG) investor relations material

Executive summary

• 2025 was marked by global economic uncertainty, geopolitical tensions, tariffs, and weak consumer confidence, leading to adverse market dynamics and volatility, but a strong international footprint and diversified business model supported resilience.

• Diversification into Tissue and Packaging protected results, now contributing 32% of EBITDA and providing balanced, resilient earnings.

• International sales accounted for 80% of turnover, with key markets in the UK, Spain, and France.

• Strategic initiatives included UK tissue consolidation, PM3 rebuild for flexible packaging, and a new tissue machine in Aveiro.

• Best-ever safety performance achieved, with frequency index at international benchmark levels.

Financial highlights

• Turnover declined 6% YoY to €1,970M; EBITDA fell 31% to €376M with a 19% margin; net profit dropped 50% to €145M.

• Free cash flow improved to €89M from €23M YoY; Capex totaled €210M, with 60% directed to ESG/sustainability investments.

• Net debt/EBITDA ratio stood at 1.87x after €210M capex and €175M dividends; net debt was €704M.

• Liquidity at year-end was €390M; average cost of finance was 2.7%; 70% of debt at fixed rates.

• Board proposes €80M in dividends for 2025.

Outlook and guidance

• Cautiously optimistic for 2026, expecting pulp and paper prices to strengthen in H1 and stabilize in H2, with limited new supply until late 2026.

• Demand in 2026 projected to be similar to 2025, with growth in China offsetting flat Europe; tissue demand annual growth projected at 1.1%.

• Packaging segment to see continued growth, with 5-10% price increases effective April and market growth of 2.5-3% until 2035.

• Price increases in paper segments expected to lift average prices in Q1 and Q2 2026.

• New tissue machine investment in Aveiro to start up in 2028.