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Introduction & Market Context
TeraPlast Bist (TRP) presented its H1 2025 financial results on August 6, 2025, showcasing strong growth amid favorable construction sector conditions. The Romanian construction materials manufacturer reported that the construction sector grew by 7% in the first five months of 2025, with demand supported by the Anghel Saligny program and EU-funded projects, though reimbursement delays created cash-flow challenges for the company’s Installations segment.
The company’s stock has shown positive momentum recently, with shares trading at 0.422, up 2.97% as of August 4, 2025, reflecting investor confidence in the company’s growth trajectory.
Quarterly Performance Highlights
TeraPlast delivered impressive financial results for H1 2025, with turnover reaching 551.8 million LEI, a 29% increase compared to H1 2024. The company’s EBITDA surged 74% to 46.9 million LEI, while net profit turned positive at 3.4 million LEI, recovering from a 6.6 million LEI loss in the same period last year.
As shown in the following financial results summary, the company achieved significant improvements across key metrics, including an EBITDA margin increase of 2.2 percentage points to 8.5%:
Volume growth was also substantial, with total tonnage increasing 18% to 63,682 tons compared to 54,009 tons in H1 2024. The company’s gross margin improved by 2 percentage points to 37%.
One of the most notable achievements was TeraPlast’s international expansion, with sales outside Romania nearly doubling to represent 35% of total revenue in H1 2025, up from 24% in H1 2024.
Detailed Financial Analysis
The 28.9% turnover increase was driven by multiple factors. While the company experienced a slight price deflation of 1%, volume growth contributed 13.8% to the increase, and M&A activities added another 16%. This breakdown is clearly illustrated in the following chart:
When comparing actual results to budgeted figures for H1 2025, TeraPlast significantly outperformed expectations. Net sales exceeded the budget by 13%, while EBITDA surpassed projections by 12%. Most impressively, net profit reached 3.384 million LEI compared to a budgeted 0.596 million LEI, representing a 468% positive variance.
The following comparison with budgeted figures demonstrates the company’s strong performance against its targets:
TeraPlast’s balance sheet remains solid, though the company’s expansion efforts have increased its net debt position to 359.393 million LEI as of June 30, 2025, compared to 275.712 million LEI at the end of 2024. The net debt/EBITDA ratio stands at 5.2x, indicating a relatively high leverage level that will require careful management.
Cash flow from operating activities showed significant improvement, reaching 4.764 million LEI in H1 2025 compared to -38.995 million LEI in H1 2024. The company made investment payments of 33 million LEI during the period, with an additional 6.5 million LEI expected for a photovoltaic project.
Strategic Initiatives
TeraPlast’s corporate structure has evolved to support its growth strategy, with several key business lines contributing to the company’s performance. The Installation segment remains the largest contributor at 73% of revenue, while the Packaging (NYSE:PKG) segment has grown to 14% of revenue, up from 12% in H1 2024.
The company’s diversified structure includes specialized divisions focusing on recycling, flexible packaging, windows and doors, polyethylene pipes, and water management solutions:
The performance across business segments varied in H1 2025. The Installation segment showed strong EBITDA growth supported by external market expansion. The domestic compounds market remained stable, while the Windows segment was negatively impacted by reassessment of PNRR projects.
The following chart illustrates the relative contribution of each business segment to the company’s revenue:
Forward-Looking Statements
TeraPlast’s management expressed confidence in the company’s growth trajectory, highlighting that international markets, efficiency improvements, and EU subsidiaries are supporting the consolidated results. The Wolfgang Freiler Group, which doubled its sales, represents a significant growth driver for the company.
The TeraBio Pack division has reduced losses and is diversifying its portfolio, while the Opal division is focusing on specialized products. These strategic initiatives, combined with the company’s continued expansion into international markets, position TeraPlast for sustained growth despite challenges such as reimbursement delays from EU-funded projects and NRRP project delays affecting the TeraGlass division.
With the construction sector showing robust growth and the company’s strategic focus on international expansion yielding positive results, TeraPlast appears well-positioned to maintain its growth momentum through the remainder of 2025, though managing its debt levels will be an important consideration for investors.
Full presentation:
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