The Navigator Company reports revenue of €529.3 million in the first quarter of 2025
Company increases turnover and profitability, with tissue and packaging segments already accounting for 30% of total revenue
The Navigator Company recorded a turnover of €529.3 million in the first quarter of 2025, an increase of 1.8% compared to the previous quarter. The result reflects the company’s performance in a context of geopolitical instability and lower economic activity in its key markets.
EBITDA reached €115.6 million, with a margin of approximately 22%. Net income increased by 6.1% over the previous quarter, totaling €48.3 million. The company attributes this result to commercial performance and measures adopted in response to the international environment.
TISSUE AND PACKAGING NOW ACCOUNT FOR 30% OF REVENUE
The tissue and packaging segments accounted for around 30% of total revenue in the period, compared to 17% in the same quarter of 2024. The company cites product portfolio expansion as a factor that supports revenue diversification and reduces exposure to fluctuations in the pulp and uncoated paper markets.
In the tissue segment, sales rose by 76% year over year, despite a 3% decline from the previous quarter. International sales represented 81% of total volume, with the UK (36%), Spain (28%), and France (15%) as key markets. The At Home segment (retail) accounted for 83% of sales, while the Away-From-Home segment (HoReCa and offices) made up the remaining 17%.
This performance was supported by the start of operations at the Navigator Tissue UK unit on May 1, 2024, which expanded sales capacity and the customer base.
PM3 CONVERSION FOR FLEXIBLE PACKAGING
In the first quarter of 2025, Navigator initiated pre-engineering for the conversion of its PM3 paper machine at the Setúbal industrial complex. The investment decision has been confirmed, and the production will be directed toward low-grammage flexible packaging papers in white and brown. The company aims to address growing global demand for alternatives to plastic.
“Sustainability and innovation are two foundational values of Navigator. They move and evolve in an interconnected way within the company’s strategy,” the company stated. The project is expected to expand the sustainable product portfolio, particularly the gKRAFT™ line for applications such as food packaging.
Unlike other industry practices, the PM3 conversion allows for the possibility of resuming UWF paper production if needed, in line with the company’s approach to operational flexibility adopted during the pandemic.
Installed in 1990, PM3 is a Valmet machine with successive upgrades. With a width of 4.55 meters and a speed of 1,160 m/min, it currently has a capacity of 180 thousand tons of UWF and is set to stand out in the flexible packaging segment, in a market dominated by smaller and less efficient machines.
SEGMENT RESULTS AND COST CONTROL
In the first quarter, the tissue segment recorded sales of 61 thousand tons, a 5% decrease from the previous quarter due to lower jumbo roll sales and seasonal factors, but up 62% compared to the same period last year. The packaging segment grew by 31% year over year, accounting for 4% of total revenue.
Fixed cost management remained stable compared to the first quarter of 2024 (excluding the effects of Navigator Tissue UK). According to the company, cost control has contributed to maintaining profitability margins amid broader macroeconomic challenges.
SOLID FINANCIAL STRUCTURE
The company ended the quarter with a net debt/EBITDA ratio of 1.25x, one of the lowest in the sector. Net debt totaled €660 million (excluding IFRS16 effects), an increase of €43 million compared to December, influenced by the early distribution of €100 million in dividends and the high level of ongoing investments.
