ENCE Energía y Celulosa (ENC) Q2 2026 earnings summary

Executive summary

• Achieved a clear operational inflection point in Q2 2026, returning to profitability with net profit of €0.5m, driven by higher pulp prices, efficiency gains, and normalization after prior disruptions.

• Strategic plan focuses on higher-margin special pulp, local sourcing, cost efficiency, and renewable EBITDA growth, with deleveraging as a short-term priority.

• Efficiency & Competitiveness Plan delivered €8m in annualized savings in H1 2026, with further cost reductions expected.

• Special pulp sales mix increased to 34% in H1 2026, targeting 40% in H2 and over 62% by 2028.

• Renewable energy and biomethane platforms advanced, with five industrial heating projects operational by year-end and a robust pipeline for future growth.

Financial highlights

• Consolidated EBITDA reached €27m in Q2 2026, up 16% year-over-year and €26m above Q1 2026.

• Net profit was €0.5m, marking a turnaround after prior losses.

• Pulp EBITDA was €23m (vs. €-1m in Q1), renewables contributed €5m.

• Revenues in pulp reached €156m, up from €146m in Q2 2025; total group revenue for Q2 2026 was €201m, up 4.5% year-over-year and 30.7% sequentially.

• Investments totaled €33m in Q2, with CapEx for the year guided at €120m; net debt stood at €493m at June-end, with €179m in cash.

Outlook and guidance

• Full-year 2026 cash cost guidance reaffirmed at €468/tonne, a €15/tonne reduction vs. 2025.

• CapEx for 2026 expected at €120m, with investment intensity to decline in H2.

• Second half of 2026 expected to show deleveraging, stronger cash flow, and improved financial profile.

• By 2028, aim to increase special pulp share to over 62% of sales, supporting incremental EBITDA margin of €36/ton vs. standard BHKP.

• Renewable platform targets tripling EBITDA by 2030, with five industrial heating projects operational by year-end 2026.