Navigator’s Q2 packaging recovery, USD 122M tissue investment drive sustainable growth
Growth was driven by rising demand for lightweight flexible packaging papers, food packaging and virgin-fibre liner products marketed under the gKRAFT™ brand.
PORTUGAL – The Navigator Company has reported a 21 percent quarter-on-quarter EBITDA recovery to €78.5 million (USD 83.2 million) in Q2 2026, as packaging sales surged 50 percent and tissue sales reached 25 percent of turnover.
The Portuguese pulp and paper manufacturer’s first-half revenue fell 14.8 percent year-on-year to €868.6 million (USD 920.7 million), impacted by planned maintenance shutdowns and higher energy costs.
However, Q2 revenue rose 3.5 percent quarter-on-quarter to €441.9 million (USD 468.4 million), with EBITDA margin improving to 17.8 percent.
Net income for H1 2026 stood at €49.1 million (USD 52.0 million), down 42.3 percent from the prior year.
Meanwhile, the packaging segment represented 6 percent of group turnover at €53 million (USD 56.2 million), supported by a 50 percent increase in sales volume and higher average selling prices.
Growth was driven by rising demand for lightweight flexible packaging papers, food packaging and virgin-fibre liner products marketed under the gKRAFT™ brand.
Tissue Business Strengthens with USD 122 Million Investment
Tissue generated 25 percent of group turnover, with first-half sales totaling 106,000 tonnes and finished products accounting for 99 percent of volume. International markets represented 80 percent of tissue sales, led by Spain (32 percent), the United Kingdom (31 percent) and France (15 percent).
Navigator approved the construction of a new 70,000-ton tissue machine at its Aveiro complex, representing a €115 million (USD 122 million) investment scheduled for completion in 2028.
The company also launched tissue products under the Don Limpio brand in Spain and is developing innovations including odor-control and fragrance-enhanced tissue products.
Capital Expenditure and Sustainability Leadership
Capital expenditure reached €127.3 million (USD 135 million) during H1 2026, with approximately 57 percent (€72 million / USD 76.3 million) dedicated to decarbonization and environmental performance.
The company commissioned a new €40+ million oxygen delignification system at Setúbal, designed to reduce chemical consumption and improve environmental performance.
Navigator maintained its CDP “A” rating for Climate Change and Forests, and received recognition from Sustainalytics as a 2025 ESG Industry Top-Rated Company.
Net debt stood at €693 million (USD 735 million) excluding IFRS 16, with a Net Debt/EBITDA ratio of 2.29x, while 95 percent of total debt is linked to sustainability targets.
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