TeraPlast's big plans: 16% turnover growth and 102 million lei EBITDA

TeraPlast Group continues the positive evolution recorded at the end of last year and has big plans for 2026, for which it has estimated a turnover of 1.26 billion lei, up 16% compared to 2025, company representatives announced yesterday at a press conference organized in Bucharest. According to them, the evolution will be supported both by the organic growth of the divisions and by the consolidation of the regional presence.

Alexandru Stânean, CEO of TeraPlast, stated: "For 2026, the main challenge is to increase our presence in the European area. We have come to have significantly over a third of our business taking place outside Romania: part exports, part local production in other markets. We have managed to increase our presence on the largest market in Europe, namely the German market. We are still at the beginning, we do not yet have a solid market share in Germany, but we are there with a structured presence, with a systematic approach, exactly as we do in all other markets, with a sales structure dedicated to that market. We hope that the entire Central European area becomes a growth vector. (...) I can tell you that, at least in our area, the Romanian market is a particularly dynamic market, in which a lot of investment is still being made. There is a very great need, due to the relatively low connection rate in the water and sewer area. Indeed, until the middle of last year, the main growth engine was the Anghel Saligny program. This year, what we see on SEAP is a change in the structure of demand: from projects financed from the state budget, such as Anghel Saligny, to projects with European funds, financed both through the PNRR and the PDD. (...) So there are prospects or we are optimistic about the prospects for our market, including this year. Obviously, what we have to keep in mind is the fact that, for now, unfortunately, we do not have a state budget. Once we have it, we will know exactly how much of these positive prospects are transposed, especially in the co-financing area, so that we can see them as projects launched for execution during this year”.

• Financing of public investment projects in 2026 puts some estimates on hold

In this regard, Bogdan Crăciunaş, CFO of the TeraPlast Group, also expressed his opinion, stating: "For the installations division, the budget for 2026 is built in a context in which uncertainties regarding the level of investments persist. Because the state budget is not published, we could not fully assess the pace of investment programs such as PNRR, Anghel Saligny or PDD for the Romanian market. We rely on the operational consolidation achieved in recent years, on sales increases outside Romania, doubled by financial discipline, to get through this volatile period. As for the Packaging division, the budgeted targets reflect our ambition and the operational potential of the existing lines - both stretch films, and the factory in Croatia and the one in Romania, dedicated to polyethylene packaging and biodegradable materials. We remain focused on efficiency and cost control, without we ignore growth, so that we can perform regardless of the dynamics of the economic environment”.

Regarding public investment projects at the national level, the general director of the TeraPlast group, Alexandru Stânean, added: "We have seen a significant slowdown in the public investment area, starting with mid-October of last year. October, November and December were the only months last year in which we sold less than in 2024, with also some holdups in the area of public works settlement, which were resolved towards the end of the year. For the beginning of this year, we have a distorted seasonality. If, traditionally, the first and last quarters were weak due to the weather, last year we did not have winter, working in full swing in January-March. This year, due to the weather and the lack of clarification of the financed projects, I tend to believe that we will re-enter an area of normal seasonality, with the peak of activity shifted to the second and third quarters”.

Mr. Stânean also indicated that TeraPlast is also carrying out works in the Republic of Moldova, which, "although it is a small market, is a market in which the connection rate to modern utilities (...) is at such a low level", especially regarding the water and sewage area, that the works in this sector will extend over at least the next 20 years.

• 5% of the market share, the target targeted by TeraPlast for the activities carried out in Germany

Regarding TeraPlast's presence in Hungary, the company's general manager indicated that, at this moment, in light of a lack of European funds due to the political context, the demand comes mainly from the agricultural area, especially on the irrigation, but water management projects have also started to appear, such as a project to streamline the water management structure around Lake Balaton.

Alexandru Stânean added: "The Austrian and German markets are full of projects, both in the energy area and in general in terms of public investment projects. They will continue to be very important markets for us and I would say that their share in the TeraPlast Group portfolio will increase significantly. Realistically, we cannot expect to become market leaders in Germany with the current set-up, but a market share of even a single digit - say over 5% - means sales of tens of millions of euros there. This is our target in the medium term.”

Regarding the estimates for the current year for the TeraPlast group, consolidated EBITDA is budgeted at 102 million lei, 18% above the 2025 level, given an EBITDA margin of 8.1%, reflecting the continuity of financial discipline and rigorous cost control in a more difficult context than in 2025. The budgeted net result for 2026 is 15.4 million lei, amid the stabilization of the performance of the business divisions. At a quantitative level, the Group aims to sell over 145,000 tons, up 18% compared to 2025, an objective supported by the growth of the Installations, Granules and, especially, Packaging divisions. The latter will have the greatest impact on the estimated growth for 2026, with a budgeted increase in turnover of 36% and a positive EBITDA of 12.7 million lei, marking the transition to a new stage of maturity for this division.

• Positive partial financial results for 2025

During the press conference, representatives of the TeraPlast group presented the partial financial results for 2025, in which the consolidated turnover increased by 21%, from 897.9 million lei in 2024 to over 1 billion lei in 2025, on the back of the solid performance of the Installations division and the improvement in the evolution of the Packaging division. According to data presented by CFO Bogdan Crăciunaş, EBITDA at the Group level advanced by 75%, from 49.6 million lei in 2024 to 86.7 million lei in 2025. This also includes a non-recurring income of 8.6 million lei, related to the sale of excess assets at the end of the year.

The EBITDA margin improved by 2.5 percentage points, reaching 8% in 2025, compared to 5.5% in the previous year, especially on the back of the positive evolution of the Installations division and the reduction of the negative contribution of the Packaging division.

Furthermore, after a net loss of 19.5 million lei in 2024, the TeraPlast Group returned to positive territory, recording a net result of 1.2 million lei in 2025, supported by the significant increase in turnover and efficient management of the cost structure. However, the level of the net result for 2025 remains influenced by the increase in expenses with exchange rate differences recorded in the first half of the year.

The consolidated gross margin was 38% in 2025, up from 36% in 2024, despite cost pressures and an intense competitive environment.

From the data presented by the CFO of TeraPlast, we also noted that sales outside Romania increased by 59%, from 233.6 million lei in 2024 to 372.4 million lei in 2025, and their share in turnover was 34% in 2025, compared to 26% in 2024, which confirms the strategic direction of regional consolidation. At the same time, during 2025, the TeraPlast Group focused on increasing its regional market share and reached, in just one year, the second position in the Hungarian installation market.

Quantitatively, in 2025 the TeraPlast Group sold over 123,000 tons, 12% more than in 2024 (110 thousand tons), generated especially by the growth of the Installation and Packaging divisions. This evolution reflects the positive quantitative impact of the growth of the businesses of the factories in Hungary and the Republic of Moldova, as well as the contribution of Optiplast in Croatia, which was consolidated in the Group's results starting from December 2024.

The General Manager, Alexandru Stânean, also said: "Today we have the best capitalization in the last four to five years: over 300 million euros of capitalization. I would like to see greater liquidity, but even so, with 273 million shares traded last year, we are in the top of the companies on the Bucharest Stock Exchange. That is why we are in all the relevant capital market indices. We have 14,000 direct shareholders, but we probably have millions of shareholders through the pension funds that are in our shareholder structure. I am referring in particular to the NN stake of 12%, but also Allianz, which reported a significant stake in the past. TeraPlast remains an entrepreneurial company."

We mention that the TeraPlast group is the largest polymer processor in Sout-East of Europe. The Group is composed of the companies TeraPlast (Romania, Republic of Moldova, Hungary and Austria), TeraGlass (Romania), TeraPlast Recycling (Romania), TeraBio Pack (Romania), Pro-Moulding (Romania and Hungary), Optiplast (Croatia) and Aquatica Experience Group (Romania). The Group's parent company, TeraPlast SA, has been listed on the Bucharest Stock Exchange since July 2, 2008, under the symbol TRP. The company's shares are included in the BET benchmark index of the Bucharest Stock Exchange, in the FTSE Russell Small Cap and Global All Cap indices and in the MSCI Frontier IMI indices.