The TeraPlast Group, the largest polymer processor in Southeast 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, amid the overlap of external factors that affected the Group's activity in the main European markets.
Severe weather conditions in the first two months of the year, the electoral context in Hungary, and geopolitical volatility have slowed down the pace of public investments and infrastructure project implementation in January-February.
Starting in March, the Group's activity has seen a gradual improvement, fueled by the resumption of projects and an increase in orders in the main markets. In the period ahead, the resumption of public investments, the prospect of the release of European funds in Hungary, and the entry into the construction sector's typical season create conditions for a better evolution of the Group's activity.
The Group’s revenue reached 235.5 million lei in the first quarter of this year, down slightly by 61% year-over-year from 249.2 million lei in the same period of 2025. EBITDA reached 8.9 million lei in Q1/2026, compared to 21 million lei in Q1/2025, and the consolidated EBITDA margin was 3.81%, compared to 8.41% in the same period last year.
Regarding the net result, after the first three months of 2026, the TeraPlast Group recorded -10.6 million lei, compared to almost -7 million lei budgeted for the first three months of the current year and a net result of 1.2 million lei in Q1/2025.
Gross margin increased by 21 percentage points in value terms, from 90.8 million lei in Q1 2025 to 93 million lei in Q1 2026, reaching 401 percentage points, 4 percentage points higher than in Q1 2025 (361 percentage points), but this increase could not offset the rise in operating expenses.
Quantitative sales were 27 thousand tons in the January-March 2026 period, compared to 29 thousand tons in the same period last year.
Sales outside Romania accounted for 35% of consolidated revenue, down slightly from 38% in Q1 2025. Sales in Romania remained at a level comparable to the previous year, and some export markets, such as Germany, Slovakia, and Croatia, showed positive trends. However, these did not 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 led to accelerated increases in commodity prices and additional pressure on costs and operational planning.
In this context, coupled with price pressure and limited raw material availability, the Group has prioritized operational flexibility and efficient management of commercial relationships in key markets. The outlook for 2026 remains good, including in the Hungarian market, where European-funded projects are expected to restart starting in the third quarter.
„Although structurally the first quarter is the weakest for the construction sector, due to seasonality, the first quarter of 2026 was one of the most challenging in recent years, with unfavorable factors overlapping: an extended winter season and elections in Hungary, which shut down construction sites in January and February. Although we saw a gradual improvement in activity in the main markets in March, it was below potential, due to the sudden volatility in raw material prices triggered by the escalation of tensions in the Middle East.
”However, the gross margin of 40% demonstrates that our operating model remains solid, and the Group’s ability to manage external pressures has strengthened. The projects currently underway and the Group’s regional positioning lay the groundwork for improved performance in the coming quarters, though we remain in an unpredictable international environment. We rely on the Group’s experience, operational discipline, and flexibility to respond quickly to future market changes„ Bogdan Crăciunaș, Chief Financial Officer of TeraPlast Group, declared.