TeraPlast returns to profit following 41 percent turnover growth in Q1

TeraPlast Group, the largest polymer processor in Southeastern Europe, announces its consolidated financial results for the first quarter of 2025, marking double-digit growth in both revenue and profitability.

TeraPlast Group recorded a turnover of RON 249.2 million in the first quarter of 2025, a 41 percent increase compared to RON 176.8 million in the same period of 2024. EBITDA rose by 76 percent, reaching RON 21 million, up from RON 11.9 million in Q1/2024. The consolidated EBITDA margin improved by 1.7 percentage points, from 6.7 percent to 8.4 percent. The net profit at the consolidated level was RON 1.2 million in Q1/2025, compared to a loss of RON 2.5 million in Q1/2024.

“The beginning of 2025 shows a stronger, larger, and more resilient TeraPlast Group, with an expanded footprint across European markets. The double-digit growth in sales and profitability is a tangible result of our strategic internationalization decisions. We are beginning to show to our shareholders the effects of our recent operational efficiency measures and the major investments made over the past few years. The current uncertainties validate our regional expansion strategy, and we will continue to focus our efforts on growing the business and seizing opportunities. As we’ve shown before, we are bold, relying on our accumulated experience, financial discipline, and a carefully calibrated development plan.” said Bogdan Crăciunaș, Chief Financial Officer of TeraPlast Group.

Quantitatively, TeraPlast Group had a 25 percent increase, from over 23,000 tons in Q1/2024 to nearly 30,000 tons in the current year’s first quarter. The gross margin rose 41 percent in value, from RON 64.3 million in Q1/2024 to RON 90.8 million in Q1/2025, and stood at 36 percent, the same level as in Q1/2024.

Sales outside Romania accounted for 38 percent of the Group’s consolidated revenue in Q1/2025, up from 17 percent in Q1/2024. In value, the sales outside Romania have tripled, increasing from RON 31 million in Q1/2024 to RON 95 million in Q1/2025. This performance reflects the Group’s geographical expansion and aligns with its strategy of internationalizing sales and reducing dependence on a single market.

Installations: 72 percent of Group revenue

• Turnover increased by 46 percent, reaching RON 178.6 million in Q1/2025, compared to RON 122 million in Q1/2024.

• EBITDA reached RON 18.1 million in the first three months of 2025, up 51 percent from RON 12 million in the same period of 2024.

• EBITDA Margin of 10.2 percent, up by 0.4pp compared to Q1/2024 (9.8 percent).

The accelerated growth of the Installations segment was primarily driven by demand from external markets, where the consolidation of the Wolfgang Freiler Group and the start of production at the Zsámbék plant were the main contributors to increased volumes. These also led to an improvement in margins.

In Romania, the market shows solid demand, slightly higher than last year, supported by water and sewage infrastructure projects financed through EU funds (PNRR and PDD), as well as government funds (Anghel Saligny Program). A significant source of increased demand in the domestic market compared to last year has come from gas network projects, also financed by EU funds. However, a challenge in the domestic market remains the delayed payment of client works financed under the Anghel Saligny program. According to publicly available information, payments are expected to be up to date by mid-May.

Granules: 10 percent of Group revenue

• Turnover increased by 21 percent, reaching RON 24.9 million in Q1/2025, compared to RON 20.5 million in Q1/2024.
• EBITDA rose by 18 percent, to RON 2.7 million in Q1/2025, up from RON 2.3 million in Q1/2024.
• EBITDA margin was 10.8 percent in the first three months of 2025, compared to 11.1 percent in the same period of 2024.

Exports in the Compounds segment maintained their positive trend, gaining market share, while market conditions in Romania remained similar to those in 2024.

Windows: 4 percent of Group revenue

• Turnover reached nearly RON 11 million, up 5 percent from RON 10.4 million in Q1/2024.
• EBITDA was negative, at RON -7 thousand, compared to RON +477 thousand in Q1/2024.

The segment showed moderate performance, influenced by seasonality, rising raw material costs, and pricing pressure. Unlike Q1/2024, the DIY customer segment held a larger share of the client mix in Q1/2025, applying price pressure and adopting a stockpiling strategy. At the same time, raw material costs, especially glass, increased, negatively impacting margins. Demand for rehabilitation projects is on the rise, which is expected to rebalance the customer mix, though due to the seasonal nature of these projects, the positive impact will likely become visible starting in Q2.

Packaging: 14 percent of Group revenue

• Turnover increased by 45 percent in Q1/2025, rising from RON 24 million to RON 34.8 million.
• EBITDA turned positive, reaching RON 197 thousand in Q1/2025, compared to a negative EBITDA of RON -2.8 million in Q1/2024.

The growth of the Packaging segment was primarily driven by the consolidation of Optiplast. The market continues to operate in an uncertain environment, with uneven developments due to raw material price volatility. However, the operational efficiency measures implemented are beginning to show results. Amid improved profitability at Opal and TeraBio Pack, as well as the consolidation of Optiplast, the Group’s new subsidiary in Croatia, the segment’s EBITDA turned positive in Q1. Nonetheless, challenges remain, as the packaging business is still undergoing restructuring at both management and operational levels, aiming to further improve profitability.