ENCE Energía y Celulosa (ENC) Q2 2025 earnings summary

Executive summary

• Revenue reached EUR 192 million in 2Q25, up 3% year-over-year, driven by higher pulp and energy sales volumes despite lower prices.

• Pulp production increased 19.7% sequentially, with cash cost reduced to EUR 488 per ton.

• Advanced pulp products made up 32% of 1H25 sales, targeting over 62% by 2028 with the new fluff pulp line.

• Major growth projects in biomethane, renewable heating, and packaging are underway, aiming for significant EBITDA contributions by 2030.

• Maintained disciplined investment and sustainability leadership, recognized by top ESG ratings and certifications.

Financial highlights

• Group revenues were EUR 192 million in 2Q25, up 3% sequentially but down 21.5% year-over-year.

• EBITDA declined to EUR 24 million from EUR 34 million in Q1, with pulp business EBITDA at EUR 20 million and renewables at EUR 4 million.

• Net loss of EUR 9 million in 2Q25, compared to a EUR 2 million profit in Q1 and EUR 23 million profit in 2Q24.

• Free cash flow before growth CapEx was -EUR 3 million, impacted by working capital outflows and investments.

• Consolidated net debt at EUR 362 million as of June 2025, with EUR 283 million in cash and EUR 150 million in undrawn revolving credit facilities.

Outlook and guidance

• Fluff pulp line commissioning in Q4 2025, expected to deliver EUR 60 per ton margin uplift and grow to over 12% of sales by 2028.

• Special pulp products to exceed 62% of total sales by 2028, enhancing cost competitiveness.

• Biomethane and renewable heating platforms targeted to reach 1 TWh and 2 TWh capacity, respectively, by 2030, contributing over EUR 100 million to EBITDA.

• CapEx for 2025 guided at about EUR 75 million for pulp and EUR 50 million for renewables, with spending aligned to cash flow generation.

• Ongoing hedging policy in place for $300 million at $/€ 1.09 cap and 1.06 floor for 2025.