Navigator’s Q2 packaging recovery, US$122M tissue investment drive sustainable growth

PORTUGAL – The Navigator Company has reported a 21 percent quarter-on-quarter EBITDA recovery to €78.5 million (US$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 (US$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 (US$468.4 million), with EBITDA margin improving to 17.8 percent. 

Net income for H1 2026 stood at €49.1 million (US$52.0 million), down 42.3 percent from the prior year. 

Packaging Segment Leads Growth with 50% Volume Surge

Packaging represented 6 percent of group turnover at €53 million (US$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. 

The company also implemented packaging price increases during H1, with additional increases expected in Q3. 

Navigator’s total H1 paper and packaging sales reached 602,000 tonnes, while inventories finished the period 18 percent below the historical 12-year average.

Tissue Business Strengthens with US$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 (US$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 (US$135 million) during H1 2026, with approximately 57 percent (€72 million / US$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 (US$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.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE