TeraPlast Group, the largest polymer processor in south-eastern Europe, announces its consolidated financial results for the first quarter of 2026, one of the most challenging quarters in recent years for the construction sector.
The severe weather conditions during the first two months of the year, the electoral context in Hungary, and the geopolitical volatility slowed down public investments and the implementation of infrastructure projects in January and February.
Starting in March, the Group’s activity gradually improved, driven by the resumption of projects and higher order volumes across the Group’s main markets. Looking ahead, the restart of public investments, the expected release of EU-funded projects in Hungary, and the start of the construction sector’s seasonal cycle create the premises for an improvement in the Group’s activity.
The Group’s revenue reached 235.5 million RON in this year’s first quarter, slightly down by 6% compared to the same quarter of 2025. EBITDA amounted to 8.9 million RON in Q1/2026, compared to 21 million RON in Q1/2025, and the consolidated EBITDA margin was 3.8%, compared to 8.4% in Q1/2025.
Regarding the net result, after the first three months of 2026, TeraPlast Group recorded -10,6 million RON, compared to a budgeted loss of close to -7 million RON for the period and a net result of 1.2 million RON in the first quarter of last year.
The gross margin increased by 2% in value, from 90.8 million RON in Q1/2025, to 93 million RON in Q1/2026, reaching 40%, up by 4 percentage points compared to Q1/2025 (36%). However, this evolution could not offset the increase in operational expenses.
Sales volumes amounted to 27 thousand tons in January–March 2026, compared to 29 thousand tons in the same period of last year.
Sales outside Romania accounted for 35% of the consolidated revenue, slightly down from 38% in Q1/2025. Sales in Romania remained broadly in line with the previous year, while some export markets, such as Germany, Slovakia and Croatia, recorded positive developments. However, these were not sufficient to fully offset the temporary declines in other foreign markets, particularly Hungary, France and Italy.
Towards the end of the quarter, the escalation of the conflict in the Middle East triggered accelerated increases in raw material prices adding further pressure on operational costs and planning.
In this context, compounded by the pressure on prices and the limited availability of raw materials, the Group prioritized operational flexibility and the efficient management of commercial relationships on the key-markets. The outlook for 2026 remains positive, including in the Hungarian market, where EU-funded projects are expected to resume starting from the third quarter.
„Although structurally the first quarter is seasonally the weakest for the construction sector, the first quarter of 2026 was one of the most challenging quarters in recent years, as several adverse factors overlapped: a prolonged winter season and the elections in Hungary, which brought the infrastructure projects to a standstill in January and February. While activity gradually improved across the Group’s main markets starting March, it remained below potential amid the sharp volatility in raw material prices triggered by the escalation of tensions in the Middle East.
Nevertheless, the 40% gross margin demonstrates that our operating model remains solid, while the Group’s ability to manage external pressures has strengthened. The projects currently under execution and the Group’s regional positioning provide the basis for improved performance in the coming quarters, although we continue to operate in an unpredictable international environment. We rely on our Group’s experience, operational discipline and flexibility to respond quickly to future market changes.” stated Bogdan Crăciunaș, Chief Financial Officer of TeraPlast Group.