Spain · Delayed Price · Currency is EUR ENCE Energía y Celulosa Earnings Call Transcripts
Fiscal Year 2025
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2025 saw lower EBITDA due to pulp price declines, but strategic progress in special pulp mix, cost reduction, and renewables growth. 2026 guidance targets further cash cost cuts, higher-margin pulp sales, and expanded renewables, with strong liquidity and disciplined capital allocation.
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Q3 saw higher pulp sales but lower prices, with cost-saving initiatives and product mix upgrades supporting margins. Renewable energy and special pulp segments are driving future EBITDA growth, while disciplined investment and strong liquidity underpin resilience.
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Disciplined cost reduction and a strategic shift toward advanced pulp and renewables drove resilient performance despite pulp price and tariff headwinds. EBITDA declined on lower energy certificate sales, but strong liquidity and sustainability leadership support long-term growth ambitions.
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Tight pulp supply and rising prices drove solid Q1 results, with EBITDA at EUR 34 million and net profit of EUR 2 million. Value-added pulp and renewables are set to boost margins and growth, while prudent leverage and strong liquidity support expansion plans.
Fiscal Year 2024
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Pulp and renewable businesses delivered strong growth in 2024, with EBITDA nearly doubling and major investments in advanced pulp, fluff, and renewables underway. 2025 guidance points to further margin expansion, lower costs, and continued diversification, all supported by robust market demand and prudent capital allocation.
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Strong Q3 results with a €190/ton operating margin and 29% revenue growth year-over-year, despite higher costs and softening pulp prices. Advanced pulp and renewables drove margin gains, while major diversification and decarbonization projects remain on track.
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Q2 2024 saw a sharp rise in pulp prices and margins, with strong cash flow and net debt reduction. Regulatory changes boosted renewable business cash flow, and multiple high-return growth projects are advancing. Interim dividend of EUR 26 million to be paid in August.