The Navigator Company (NVG) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by heightened geopolitical instability and severe weather in Portugal, causing operational disruptions, higher costs, and supply chain challenges.

• Diversification, especially in Tissue and Packaging, supported resilience, with these segments contributing nearly 40% of EBITDA.

• Price increases across all segments reversed a six-quarter downward trend in key paper indices.

• Strategic initiatives included new product launches, partnerships, and capacity expansions, particularly in tissue and packaging.

• Turnover reached €427 million, down 11% sequentially and 19% YoY; EBITDA was €65 million, down 14% sequentially and 44% YoY.

Financial highlights

• Revenue was €426.8 million, down 11.2% from Q4 2025 and 19.4% YoY.

• EBITDA was €64.8 million, margin at 15.2%, down 14.1% sequentially and 43.9% YoY.

• Net profit was €17.2 million, down 64% YoY.

• Free cash flow was €28.2 million, down 51% YoY.

• CapEx reached €42.4 million, with 53% allocated to sustainability and ESG projects.

Outlook and guidance

• Pulp prices expected to remain above 2025 levels, with further increases in Europe until Q3 and in China until Q2, followed by moderate corrections.

• No significant new supply expected until 2027-2028, supporting a favorable supply-demand balance.

• Multi-stage price increases underway in printing, writing, tissue, and packaging papers across all key markets.

• Q2 average prices anticipated to be higher than Q1 as operational constraints ease.

• Tissue demand remains resilient, with annual growth estimated at 1.1%.