By the end of the first quarter, the group’s operations had returned to normal, and the company continues to pursue its cost reduction targets announced for the Pulp business for 2026 and 2027.

With regard to consolidated EBITDA in the first quarter, it stood at just over €1 million, impacted by these extraordinary effects, compared with €13 million in the fourth quarter of 2025.

Increase in pulp prices
The company is now well positioned to capitalise on rising pulp prices. After closing 2025 with a historically low average price of $1,086/t (gross and before discounts), it is worth noting that a new increase has recently been announced to $1,430/t (gross and before discounts), to be implemented in May.

In addition, in Europe, potential difficulties in importing paper and pulp from Asia, the Middle East and Latin America, due to disruptions in logistics routes, are creating greater opportunities for price increases for European producers such as Ence.

Middle East conflict: opportunities
With regard to the Middle East conflict, it should be noted that the new context opens up opportunities for the company. In the Pulp business, it strengthens its position as a regional operator capable of offering local supply. In Renewables, it consolidates its role as a driver of energy autonomy through a diversified portfolio of renewable energy based on biomass—renewable industrial heat and biomethane—which is positioned as a strategic local alternative to imported gas.

In this context, the company’s renewable energy platform is showing significant progress. The renewable industrial heat business will close 2026 with five operational projects, compared with one in 2025. In biomethane, Ence continues to develop a portfolio of 41 projects, of which 25 are in an advanced stage of engineering and administrative processing.

Moreover, the impact of the Middle East conflict on Ence’s operations should be limited, as it benefits from mitigating strategic factors in both businesses, including the energy self-sufficiency of its pulp plants, the use of local supplies, and its commercial exposure to the European market.

Specialty pulp
The company continues to make progress in its transformation into a manufacturer of specialty pulp, substituting higher-cost long fibre. This type of product accounted for 34% of Pulp sales in the first quarter, compared with 30% in 2025. During the quarter, the first sales of fluff pulp were made; this product is still undergoing certification and will help strengthen Ence’s positioning in higher-margin segments.

The target is for specialty pulp to exceed 62% of Pulp sales by 2028.

Focus on cost reduction
The company remains focused on improving operational efficiency. Cash cost, excluding extraordinary impacts, stood at €479/t in the first quarter, compared with €510/t in the first quarter of 2025. The impact of extraordinary factors amounts to approximately €7 million (equivalent to €43/t at cash cost level). The sale of new CAEs for €7 million has partially offset these extraordinary costs.

In the Pulp business, the company continues to implement the Efficiency and Competitiveness Plan and the Navia cost reduction and decarbonisation plan, with the aim of reducing cash cost by €30/t over the 2026–2027 period (approximately €15/t per year). In the first quarter, measures with an annual impact of €6 million have already been consolidated.

La entrada Despite the impact of strikes and severe storms, Ence halves its losses in the first quarter of 2026 and positions itself to capitalise on cost reductions and rising pulp prices se publicó primero en Ence.

The 11th Edition of the Escolástico Zaldívar Awards for Health and Safety, organised by Fraternidad-Muprespa, has unanimously agreed to grant an Honourable Mention to Ence – Energía y Celulosa for the development of an innovative artificial intelligence-based system to prevent run-over accidents and collisions. This recognition was presented in Madrid to mark World Day for Safety and Health at Work, where the work of companies and professionals in protecting people was highlighted.

Ence’s main strategic priority is to ensure the safety and health of all individuals involved in its operations. The award-winning project represents a significant step forward in this area, integrating computer vision technologies, sensors, cameras, positioning systems and artificial intelligence capable of analysing images in real time and detecting risk situations with over 99% accuracy. This capability enables the system to identify the presence of pedestrians, even when they are not carrying identification devices, and to immediately alert drivers through alarms installed in vehicles.

The system also learns from situations encountered during its use, increasing its reliability and effectiveness over time. The solution offers additional functionalities, such as automatic speed reduction when risks are detected and pre-use equipment checks. The data generated is particularly valuable for monitoring and analysing safety indicators, thereby reinforcing the continuous improvement of processes.

Strengthening industrial safety

The Ence Group initiated this project with pilot tests in Pontevedra and Huelva. Since January 2026, the system has been operational at the renewable energy complex of its subsidiary Magnon in Huelva.

The granting of this Honourable Mention recognises Ence’s commitment to innovation applied to industrial safety and the coordinated work of its Safety, Operations, Engineering and Digitalisation teams.

Juan Ibáñez(right), Director of the Group ENCE Joint Prevention Service and of Sustainability, Safety, Occupational Health and Environment for the Pulp business, receiving the award at the ceremony.

La entrada Ence recognised for safety with an intelligent system that eliminates the risk of run-over accidents se publicó primero en Ence.

The project is being carried out in partnership with Tenzas, a forestry consultancy firm, and Nigal, which specialises in digitalisation and advanced data analysis, and benefits from the scientific and technical support of the University of Santiago de Compostela and Feuga (Galician Business-University Foundation) to promote its dissemination.

SILVO+ will integrate artificial intelligence to optimise grazing based on biomass, weather conditions and fire risk. It also involves the validation of technologies such as GPS systems, electronic fencing and mobile infrastructure.

The initiative also includes the development of a standardised methodology to measure and certify ecosystem services such as carbon, biodiversity and soil improvement. Furthermore, a digital platform will be designed to integrate the data generated and facilitate compliance with regulatory requirements, including the CSRD (Corporate Sustainability Reporting Directive).

With SILVO+, Ence is strengthening, within the framework of its Biodiversity Plan, a line of work aligned with its strategy on fire prevention and sustainable forest management, whilst enhancing the identification, measurement and valuation of ecosystem services

SILVO+ receives funding from the Galician Agency for Innovation and is supported by the European Regional Development Fund (ERDF) under the Galicia ERDF 2021-2027 Program.

La entrada Ence is promoting SILVO+, an innovative project aimed at preventing fires and enhancing ecosystem services se publicó primero en Ence.

Magnon, together with Sandfire MATSA, is leading from its renewable energy complex in Huelva a pioneering circular-economy initiative in Spain.

In late 2025, the two companies launched a project that will make it possible to reuse biomass fly ash as a partial substitute for cement in the backfilling of mining stopes and drifts. This is an unprecedented advance in Spain’s mining sector, strengthening both companies’ commitment to industrial innovation, efficiency, and the circular economy.

In this context, Magnon has begun managing, for this purpose, the ash generated at one of the facility’s three plants, Huelva 50 MW.

This ash is being recovered as a byproduct and progressively incorporated into the paste that Sandfire MATSA uses to backfill underground stopes and drifts. The use is being implemented at two of its mining operations, Aguas Teñidas and Magdalena, located in Almonaster la Real.

Innovative process

The initiative consists of progressively incorporating fly ash generated in renewable biomass power production as a cementitious material in manufacturing the paste used to backfill underground stopes and drifts. This ash has been designated by the Andalusian Regional Government’s Ministry of Sustainability, Environment, and the Blue Economy as a byproduct, suitable for this specific use at these two mines.

Improved strength and durability

Tests carried out by the Sandfire MATSA team and verified by independent laboratories with recognized national and international prestige in the construction field show that the paste resulting from the mixture of cement and biomass fly ash maintains—and even improves—its strength and durability and therefore performs better over time, providing greater long-term safety.

La entrada Magnon drives Huelva’s first use of biomass ash in underground mining se publicó primero en Ence.

This diversified growth across renewable energy streams will enable this business unit to triple its operating profit by 2030.

Biomethane

The development of the biomethane business is one of the main growth drivers within Ence’s renewables division. The company aims to exceed 1 TWh of annual production by 2030, with an EBITDA contribution of more than €60 million. Ence currently has a pipeline of 42 identified projects, 25 of which are in the permitting phase, in addition to one plant already in operation in La Galera. This rollout positions Ence as one of the best-placed players to capture the potential of renewable gas in Spain.

Renewable industrial heat

In parallel, the renewable industrial heat business, operated through its subsidiary Magnon, continues to expand with the goal of reaching 2 TWh of thermal energy production by 2030 and generating more than €40 million in EBITDA. The company currently has one facility in operation, another in commissioning and three projects under construction, consolidating a portfolio with strong growth visibility and long-term contracts.

Renewable electricity

Through Magnon, Ence is also the largest biomass manager in Spain and a leader in electricity generation from agricultural and forestry biomass. With 266 MW of installed capacity, it transforms agricultural residues into clean energy, fostering rural development, reducing wildfire risk and promoting a circular economy model.

Biomass plays a key role as it enables continuous, predictable and demand-adaptable electricity generation, with availability comparable to conventional technologies, making it a reliable solution to ensure the stability of the power system.

Renewable fuels

With regard to renewable fuels, the company is advancing the development of new opportunities linked to the use of biogenic CO₂ and its conversion into sustainable fuels and their derivatives.

This represents a strategic opportunity for Ence, as the production of renewable fuels requires biogenic CO₂ as a feedstock. In this field, the Ence Group holds a distinctive position, generating more than four million tonnes annually—approximately 50% of the total in Spain—concentrated in strategic locations close to ports and key industrial hubs.

La entrada Ence accelerates its growth in renewables with the aim of tripling EBITDA in this business unit by 2030 se publicó primero en Ence.

In addition to retaining the highest distinction, Ence has improved its overall score, reaching 90 out of 100, compared to 86 points in the previous assessment. This progress reinforces the strength and consistency of the company’s sustainable management model.

The improvement in the rating has been achieved across several of the areas assessed by EcoVadis, with notable progress in environmental performance, labour and human rights practices, and sustainable procurement.

The highest-rated area once again was environmental performance, where Ence achieved a score of 98 out of 100, reflecting the company’s structural commitment to decarbonisation, responsible management of natural resources, and continuous improvement of its environmental performance.

The EcoVadis methodology assesses more than 150,000 companies worldwide across four key areas: environment, labour and human rights, ethics, and sustainable procurement. The Platinum Medal is awarded only to organisations that demonstrate the highest ESG standards.

This latest assessment consolidates Ence’s position as an international benchmark for sustainability within the pulp and renewable energy sectors, and reaffirms its commitment to a responsible, transparent business model aligned with global best practices.

La entrada Ence retains EcoVadis Platinum Medal and remains, for the third consecutive assessment, at the top of its sector se publicó primero en Ence.

Ence held its Annual General Meeting, at which all proposed resolutions on the agenda were approved. During his address, the Chairman, Ignacio Colmenares, highlighted that the company is a driver of energy independence, particularly in an international context marked by increasing geopolitical tensions.

In this environment, he stressed the importance of moving towards an energy model based on domestic and renewable resources that reduces dependence on imported fossil fuels, highlighting the key role of technologies such as biomass.

Cost reduction and speciality pulp as key drivers of competitiveness

The company’s strategic positioning is built around its two business units: Pulp and Energy. In the Pulp business, Ence is advancing along two main lines: improving competitiveness through cost reduction and increasing the share of speciality pulp.

In terms of cost efficiency, in 2025 the company achieved total savings of €10 million. In this regard, further initiatives will be implemented in 2026 and 2027, delivering additional annual savings of €15 million.

At the same time, Ence is progressing in its transformation into a speciality pulp producer, with the aim of reaching 62% of sales by 2028. In this context, the start-up of the first fluff pulp line at the Navia biofactory stands out, with a capacity of 125,000 tonnes per year. With this milestone, Ence becomes the only producer of this type of eucalyptus-based pulp in Europe, offering a competitive alternative to higher-cost long fibre.

The company also continues to make progress on the Pontevedra Avanza plan and the As Pontes project, which has recently been awarded €25 million in PERTE funding.

Renewables: tripling EBITDA by 2030

In the renewable energy business, Ence continues to develop the largest diversified platform based on the transformation of biomass into industrial heat, regulated electricity, biomethane and renewable fuels.

In 2025, through its renewable energy subsidiary Magnon, the company signed three contracts to supply industrial heat from biomass to companies in the food sector, replacing facilities that used fossil fuels. In addition, in the field of electricity generation, it processes nearly two million tonnes of forestry residues, providing dispatchable energy to the grid and contributing to system stability.

In the renewable gases business, Ence produces biomethane that is injected directly into the natural gas grid, replacing imported gas through the use of agricultural and forestry biomass.

This growth in renewable products and diversification in renewable energy will enable Ence to triple its operating result (EBITDA) by 2030.

Outlook for 2026

Within the framework of the Annual General Meeting, the Chairman reviewed the main milestones of 2025, a year that closed with losses, and reaffirmed the company’s commitment to returning to profitability.

Looking ahead to 2026, in the Pulp business, the company’s key levers will focus on cost reduction, increasing the share of speciality pulp and the favourable evolution of pulp prices, among other factors.

In Renewable Energy, an increase in electricity generation is expected, along with further progress in industrial heat and biomethane. In addition, Ence is strengthening its role in the development of renewable fuels, leveraging its capacity to generate more than four million tonnes of biogenic CO₂ per year, approximately 50% of the total produced in Spain

La entrada Ence highlights at its Annual General Meeting its position as a driver of energy independence se publicó primero en Ence.

This initiative is part of the company’s financial strategy and reinforces its commitment to sustainable financing and the integration of ESG (environmental, social, and governance) criteria into its business model.

The bonds are linked to sustainability targets and are structured in accordance with the Sustainability-Linked Bond Principles published by the International Capital Markets Association (ICMA). Through this programme, Ence gains access to qualified investors, continues to diversify its medium- and long-term funding sources, and advances in the execution of its strategic growth objectives, with the support of the financial community.

The company was advised by Kenta Capital. Banca March, Sabadell, Renta 4, Kutxabank Investing, and Andbank acted as placement agents. Uría served as legal advisor, and G advisory acted as independent verifier of the sustainability criteria.

La entrada Ence places €85 million in four-year sustainable bonds under its new MARF programme se publicó primero en Ence.

Ence’s recycled fiber bioplant project in As Pontes (A Coruña) has been provisionally selected to receive €24.7 million under Line 4 of the Industrial Decarbonization PERTE, led by Spain’s Ministry of Industry and Tourism.

Specifically, the initiative has been awarded a grant of €24,691,726 within the call for “Aid for Highly Efficient and Decarbonized Manufacturing Facilities,” included in the 2025 Industrial Decarbonization PERTE, according to the provisional list of approved applications published by the Ministry.

Commitment to the circular economy and environmental care

Last August, the regional government of Galicia granted the plant its Integrated Environmental Authorization (IEA), a highly significant milestone for both the project and the company.

As Pontes will be a world pioneer in producing bleached recycled fiber from recovered paper and cardboard, giving these materials a new life and fully aligning with circular economy principles.

In designing this project—the first in Europe to manufacture bleached recycled fiber from recovered paper and cardboard—Ence prioritized its commitment to energy independence. The plant will be self‑sufficient in renewable energy generated from by‑products of the local forestry industry and will not use fossil fuels.

In line with Ence’s circular economy goals, As Pontes will be the first facility in the sector in Europe to apply TCF (totally chlorine‑free) bleaching technology to recycled fibers.

Just transition

The project is located on the industrial grounds of the former As Pontes coal‑fired power plant, serving as a tangible example of a just transition and contributing to the sustainable development of the local community.

Additionally, Ence is advancing Regatex, a pilot textile recycling plant aimed at developing an innovative system for recovering value from textile waste. In collaboration with the Swedish startup Sharetex, the company has succeeded in producing recycled cellulose from polycotton—a material that is notoriously difficult to recycle—opening new pathways for circular management of clothing and textiles.

La entrada Ence’s bleached recycled fiber bioplant project in As Pontes receives €24.7 million from the Industrial Decarbonization PERTE se publicó primero en Ence.

In terms of pulp sales, speciality pulps reached nearly 290,000 tonnes in 2025, compared to nearly 220,000 tonnes in 2024, representing an increase of nearly 70,000 tonnes in speciality pulp sales in 2025.

The company plans to continue increasing the weight of these solutions in its commercial mix. Looking ahead to 2026, the goal is for speciality pulp to account for around 40% of sales in the Pulp business unit, consolidating Ence’s presence in segments with higher margins and growth.

Strategic advance in the fluff market
A significant milestone in this strategy was the launch, in the fourth quarter of 2025, of the first fluff pulp production line at the Navia biofactory, with an annual capacity of 125,000 tonnes.
With this investment, Ence becomes the only producer in Europe of fluff pulp from eucalyptus fibre, enabling it to compete in the European market with higher-cost producers of long fibre.
This new product, currently undergoing customer approval, is mainly aimed at the European market for absorbent hygiene products, such as nappies and personal hygiene items, which are on the rise due to the ageing population. Its development will make it possible to replace imports and offer a more cost-competitive alternative to the long fibre traditionally used in these applications.

Target: exceed 62% in 2028
Increasing the weight of speciality pulp is one of Ence’s strategic priorities. In this context, the company has a clear roadmap for continuing to increase the weight of these grades in the coming years. The strategic objective is for speciality cellulose to exceed 62% of cellulose sales in 2028, which will contribute to consolidating a business profile with greater added value and structurally higher margins.

La entrada Ence drives growth in speciality pulp and expects it to account for around 40% of pulp sales by 2026 se publicó primero en Ence.

Ence’s biofactory in Navia has begun its annual technical shutdown, a strategic process that will run until 20 March and will involve an investment of €11 million.

Beyond the maintenance of facilities and equipment, the investments to be carried out will focus on projects designed to make the biofactory more competitive and resilient. Key initiatives include improvements in digitalisation and cybersecurity, enhanced thermal efficiency in processes, and a reduction in the use of fossil fuels.

In addition, the necessary works will be undertaken to implement the new decarbonisation project and the new line in the wood yard. This initiative will improve the plant’s competitiveness and increase its flexibility in the production of specialty pulps.

During this shutdown, advanced sensors will also be installed to enable real-time measurement of pulp quality parameters, ensuring the production excellence of the Asturian biofactory.

Certified excellence

Through this shutdown, the Ence Navia biofactory will further strengthen its efficiency and operational excellence, already accredited by some of the most demanding environmental certifications, such as the Nordic Swan label and the Zero Waste certificate, which confirm that virtually all waste generated is reintegrated into the value chain, avoiding landfill.

These recognitions are complemented by the recent Quality Innovation Award (QIA) 2024, a prestigious international prize that acknowledges the Navia biofactory for its excellence in environmental management and its ability to integrate continuous improvement across all its production processes.

La entrada Ence will allocate €11 million to the shutdown of the Navia biofactory to carry out maintenance, digitalisation and energy efficiency improvements se publicó primero en Ence.

Ence Terra, Ence’s initiative that brings together all of its forestry activities, closed 2025 after reaching significant milestones. The chainsaw operators’ training center in Vilalba (Lugo), inaugurated in December 2024, held more than 20 training sessions with the participation of 80 professionals from Galicia, Asturias and Cantabria. These eight-hour sessions have helped strengthen prevention and professional standards in forestry operations linked to Ence Terra.

In addition, during 2025 nearly 30 forest machine operators took part in specific programmes aimed at improving safety awareness and sharing best practices in occupational safety, while also deepening their knowledge of equipment maintenance and operation.

These advances reinforce the company’s commitment to professionalizing the sector through specialized training, infrastructure investment, the expansion of advisory services for forest landowners, and the promotion of new technological solutions.

Improvements in wood yards at biofactories and new services

At the same time, the company has made progress in its investment and improvement plan for the wood yards at the Pontevedra and Navia biofactories. Ence Terra has also launched an innovative mobile workshop service, in collaboration with specialized repair workshops, to address machinery breakdowns directly in the forest. Supported by a mobile application and a web platform, this service reduces repair times and ensures the continuity of forestry work.

It is complemented by a replacement machinery service, which allows operations to continue when repairs require more time.

Boost to advisory services

The commitment to forest landowners—another of Ence Terra’s strategic pillars—has also been strengthened. Since the launch of the programme in 2023, more than 2,350 free and personalized advisory services have been provided, nearly 1,000 of them in 2025 alone.

These technical recommendations have had an impact on more than 4,500 hectares, including fertilization recommendations tailored to each plot, based on a network of more than 1,500 soil samplings and analyses. This network will enable optimized nutrient management and improved productivity of forest stands.

La entrada Ence Terra strengthens the forestry sector with nearly 30 trained machine operators and close to 1,000 landowners advised in Galicia, Asturias and Cantabria se publicó primero en Ence.