The Navigator Company: EBITDA down 29.3% over first nine months, hampered by plant shutdowns
The Navigator Company published its accounts for the first nine months on October 22, 2026, marked by a 29.3% decline in EBITDA, at €212.2 million. The Portuguese group attributes this decline to industrial constraints: storms in Portugal in the first quarter, scheduled maintenance shutdowns across all its plants, and the conversion of the PM3 paper machine in Setúbal.
These shutdowns limited available volumes. At the same time, paper prices rose. At the end of September, the group's stocks were approximately 25% below their historical average for this period of the year, which also weighs on the start of the fourth quarter.
Third quarter: sales of €465 million and EBITDA margin of 14.8%
In the third quarter, revenue stood at €464.7 million, up 5.2% compared to the second quarter and down 1.2% year-on-year. EBITDA declined to €68.9 million, or -12.3% sequentially and -17.9% compared to the third quarter of 2025. The EBITDA margin fell from 17.8% to 14.8%, a decline of 3 percentage points against both comparison periods.
Quarterly net income fell to €16.2 million, compared to €33.1 million a year earlier (-51%). Over the first nine months, revenues reached €1,333.3 million (-10.5%), operating income €83.1 million (-52.3%) and net income €65.4 million (-44.8%). The cumulative EBITDA margin stood at 15.9%, compared to 20.2% a year earlier.
Volumes limited by shutdowns, paper prices rising
The quarter was affected by an extended shutdown of the Figueira da Foz plant in July, devoted to the first chemical cleaning of its recovery boiler since its commissioning. PM3 was in turn shut down for approximately half the quarter for its conversion. Over nine months, the group also reports a non-recurring increase in natural gas consumption and the purchase of additional CO₂ quotas.
On the price side, the European PIX A4 B-copy index reached €956/t at the end of September, compared to €927/t at the beginning of January. Navigator's average prices for uncoated paper increased by €81 between December and September, or nearly 10%. In the third quarter, the group's premium on the reference index reached 5%.
Developments vary by business segment. In packaging (€82 million in revenue over nine months), volumes increased 33% year-on-year in the third quarter. In tissue, which represents nearly a quarter of sales, volumes declined 6% year-on-year, due to increased competition in the United Kingdom. Pulp volumes fell 13% year-on-year.
Net debt increased to €765 million, up €61 million compared to December. This increase comes after €80 million in dividends paid and €173.9 million in investments (+9%). The net debt to EBITDA ratio rose to 2.66 times, compared to 1.85 times a year earlier, an increase the group attributes solely to the decline in EBITDA. Free cash flow stood at €18.6 million, compared to €22.7 million a year earlier.
No major shutdowns planned for fourth quarter, prices oriented upwards
For the fourth quarter, Navigator does not foresee any significant shutdown, which should allow production and deliveries to gradually return to normal. The group implemented a third price increase in Europe in the third quarter and expects its average prices to remain well-oriented in the coming quarters.
The converted PM3 is at the production trial stage, with already marketable production. The restructuring of the tissue business in the United Kingdom should be completed by the end of the first half of next year. The new tissue machine in Aveiro (70,000 tonnes per year, approximately €115 million in investment) is expected to enter service in 2028.
The group had cash of €147 million and €323 million in confirmed and unused long-term credit lines at the end of September. The start of the fourth quarter remains constrained by stocks approximately 25% below the average of the past ten years.
