The Navigator Company (NVG) Q2 2025 earnings summary

Executive summary

• H1 2025 turnover was €1,019 million, down 4% year-over-year, with EBITDA at €216 million, a 28% decrease, and net profit at €85 million, down 46% from H1 2024.

• Strong growth in Tissue and Packaging segments, with tissue sales up 35% and volumes up 27% year-over-year, driven by UK acquisition and international expansion.

• Diversification strategy and operational resilience supported stable turnover amid volatile market conditions, higher costs, and US tariff risks.

• Maintained leadership in sustainability, earning top ESG ratings, CDP 'A' scores, and international recognition for climate and forest management.

• Achieved best-ever safety performance, with a 49–50% year-over-year improvement in accident frequency.

Financial highlights

• Turnover reached €1,019 million in H1 2025, with tissue and packaging now accounting for nearly 30% of total turnover.

• EBITDA was €216 million, down 28% year-over-year, with a margin of 21%.

• Net profit for H1 2025 was €85 million, down from €159 million in H1 2024.

• Net debt increased to €676 million, up €58 million since December, after €100 million in dividends and high capex.

• Value-added capex totaled €94 million, with 60% directed to sustainable investments.

Outlook and guidance

• Persistent global uncertainty, protectionism, and new US tariffs create volatility for international trade and pricing.

• Operational excellence initiatives launched to optimize costs, enhance efficiency, and leverage AI, with a headcount freeze.

• Capex to be reduced by €40 million in 2025, prioritizing high-return and EU-funded projects.

• Exploring installation of a new tissue machine in the UK and advancing flexible packaging capacity, with final investment decisions expected soon.

• Diversification and commercial strategies to protect margins and volumes amid economic slowdown.