Soleno Therapeutics tumbles despite Q3 earnings, revenue beat
Teraplast (TRP) reported robust financial results for the third quarter of 2025, showcasing significant year-over-year growth in revenue and profitability. The company’s consolidated turnover reached RON 857 million, marking a 26% increase compared to the same period last year. Despite these gains, Teraplast’s stock showed a slight decline of 0.23%, reflecting a nuanced market reaction to the earnings report.
Key Takeaways
- Teraplast’s revenue grew by 26% year-over-year, reaching RON 857 million.
- EBITDA increased by 59%, enhancing the EBITDA margin to 8.4%.
- Net profit improved significantly to RON 6.3 million from a loss last year.
- Stock price decreased slightly by 0.23% following the earnings release.
- The company continues to expand its market presence in Europe.
Company Performance
Teraplast demonstrated strong performance in Q3 2025, driven by increased volumes and strategic market expansion. The company managed to grow its EBITDA by 59% year-over-year, highlighting its operational efficiency and successful cost management. The strategic acquisition of Aquatica Experience Group earlier this year also contributed to its performance, expanding its market footprint in Moldova, Hungary, Austria, and Germany.
Financial Highlights
- Revenue: RON 857 million, up 26% year-over-year.
- EBITDA: RON 72 million, up 59% year-over-year.
- Net Profit: RON 6.3 million, compared to a loss of RON 6.9 million in 2024.
- EBITDA Margin: 8.4%, an increase of 1.8 percentage points.
- Gross Margin: 37%, up from 35% last year.
Outlook & Guidance
Looking ahead, Teraplast remains focused on its geographical diversification strategy, aiming to reduce debt levels below 4x EBITDA by the end of the year. The company also plans to continue its selective mergers and acquisitions strategy, particularly targeting international markets to further enhance growth.
Executive Commentary
CEO Cosmin Teodoru emphasized the strategic importance of expanding into international markets, stating, "The growth that we had was to a large extent due to the market access that we gained in the Republic of Moldova and in Hungary, Austria, France, Germany." He also expressed confidence in the company’s acquisition strategy, noting, "We strongly believe that this strategy to acquire businesses is the correct way to accelerate and continue the growth of Teraplast."
Risks and Challenges
- Economic Slowdown: A potential slowdown in the global economy could impact demand.
- Market Saturation: Increasing competition in key markets may pressure margins.
- Regulatory Changes: New regulations in foreign markets could affect operations.
- Debt Levels: While reduced, maintaining lower debt levels remains a priority.
- Supply Chain Disruptions: Any disruptions could affect production and delivery timelines.
Q&A
During the earnings call, analysts inquired about Teraplast’s future M&A plans and the positioning of its Teraglass business. The company reiterated its selective approach to acquisitions, focusing on international markets to enhance its competitive advantage and profitability.
Full transcript - Teraplast Bist (TRP) Q3 2025:
Conference Organizer, Teraplast: Welcome to the investors and analysts call for Teraplast Group’s 9-month results in 2025. There are still some people that registered and need to connect, so I propose to wait a couple of minutes, and then we will start with the presentation. Thank you.
Unidentified Host, Teraplast: Good afternoon and welcome to the conference call for third-quarter results of Teraplast. I’m together with my colleagues Aleksandra Herishanu and Bogdan Crăciunaș, whom you already know. I will let Bogdan do the presentation, and I’ll be here for the Q&A for you.
Bogdan Crăciunaș, CFO, Teraplast Group: Hello everybody, good afternoon. I am Bogdan Crăciunaș, the CFO of Teraplast Group. In respect of the group structure in this quarter, we have no changes compared to the group structure we presented in quarter two. Basically, we are talking about Teraplast for installation and compounds segment, Teraplast Recycling for rigid PVC recycling and Opal brand. We are talking about Terabio and Terapac, and we are talking about Teraglass for windows and doors. In quarter two 2025, we have Aquatica Experience Group, who joined our group. Also, in the installation segment, we have Palplast, the production facility in the Republic of Moldova, Freiler Group with the two production entities, production plants in Hungary, Promolding, and for packaging segment, we have Optiplast Croatia. A few words regarding the market.
According to the data from the National Institute of Statistics, the construction sector in Romania has grown by 8.9% in the first eight months of 2025. Eight months because this is the period for which the data was published. By types of construction, the engineering works presented an increase of 13%, followed by the residential buildings with an increase of 8.7%, and the non-residential buildings, which presented a growth of 3.8%. In this context, the installation division benefited from a solid market demand, although the market faced slowdown in this quarter, especially in the projects financed by the Angel Salini investment program. The tenders under the National Recovery and Resilience Plan are progressing at a slower pace compared to those under Angel Salini, with a more substantial overall volume.
Our colleagues from Hungary, the Wolfgang Freiler Group, have begun to capitalize on the efforts to diversify the target markets with visible results in Austria and Germany. These are the main focus for growth in the following period. The granule market has been affected by a lower demand in volumes for PVC cable industries, but we have compensated the decrease in volumes with the exports being sales with a higher profit margin. The packaging division maintains its performance in the retail segment. This includes the major retail chains and the local distributors, while the industrial product segment and exports were impacted by significant price pressure from both intra-communicatory and extra-communicatory imports. The window division benefited from a solid portfolio of rehabilitation projects. Scheduled for completion in the coming period. Demand in this sector is primarily for aluminum systems.
However, the profitability in the first nine months of 2025 was significantly impacted by the increase of the prices for the raw materials, especially for glass. While this increase in the raw material prices could not be transferred through the sales prices to the customers, we will see that the windows segment is presenting a slowdown, is presenting a lower profitability compared to previous periods. The key figures: in the first nine months of 2025, we have a consolidated turnover of RON 857 million, presenting an increase of 26% compared to the similar period in 2024. The volumes have increased, reaching almost 100,000 tons, with an increase of 17%. The EBITDA level is close to RON 72 million, a solid growth compared to the similar period of 2024, 59%.
The EBITDA grew in amount, but also in terms of EBITDA margin, is presenting an increase of 1.8% compared to the similar period in 2024, reaching 8.4%. The net result is RON 6.3 million, a profit compared to a loss of RON 6.9 million in the similar period. While the gross margin is 37% compared to 35% in 2024. Very important, the external markets here having the exports from the Romanian entities and the production and sales of the subsidiaries outside Romania is hitting 35% in our total sales, which is a significant increase compared to 2024. Moving to the explanation, the bridge for the increase in turnover, as you can see in 2024, we had a turnover of RON 681 million. 2025 was impacted by a very small decrease in sales prices, only 0.3%.
On the positive side, this decrease in prices is due to the decrease in the prices of the raw material, which was transferred to the sales prices. The volumes have increased by 17% at the level of consolidated Teraplast Group, and this is translated into a 14% increase in turnover. The M&A is contributing with an increase of 12% in turnover, meaning RON 82 million. We are moving to the presentation of the key figures for the financial performance. As mentioned previously, in 2025, consolidated figures for nine months, we have a turnover of RON 857 million, with an increase of 26% compared to last year. In percentage terms, the gross margin has improved from 35% to 37%. Unfortunately, this increase is slightly below the budget, which was set at 38%. In terms of costs, these were impacted together with the turnover.
These were impacted mainly by the consolidation of the subsidiaries bought at the end of 2024 and Aquatica Experience Group in 2025. Basically, all the expenses are impacted by this consolidation. In terms of EBITDA, we have a 59% increase from 45 million to 72 million. Mentioned also earlier, we are hitting an EBITDA margin of 8.38%. In terms of net profit, we are presenting strong improved performance, hitting a profit of 6.3 million lei compared to a consolidated loss of 7 million in 2024. Moving forward, I present on the slide the result for consolidated nine months 2025 versus the budget. As it can be seen on the screen, in terms of turnover, we are ahead of the budget with 10%.
The EBITDA is slightly below the budget, 72 million lei versus an objective of 75 million, and net profit of 6.3 million compared to 12 million as it was budgeted. This net profit is impacted significantly by the financial costs. These financial costs are split into two components. First, the interest. Having to finance the working capital and the investments in the subsidiaries, we have higher interest costs, but also the devaluation of the national currency compared to euro. This had a significant impact in our financial results. In respect of the results on the segments, the key driver for this very good performance at nine months is the installation and recycling segment. This presents an increase in turnover compared to 2024 of 29%. The EBITDA is increasing by 37%, up to a level of 64.2 million lei.
This is due to the robust domestic demand and also by the contribution of Wolfgang Freiler Group results, resulting in a 20% quantitative increase compared to the first nine months of 2024. A major factor here is the consolidation of Wolfgang Freiler Group for the entire nine months of 2025 compared to only two quarters in 2024. The compounds and recycling segment is presenting a good evolution in terms of EBITDA, 14%, up to a level of 8.2 million compared to 7.1 million in 2024, while the turnover is basically in line with last year. As mentioned earlier, this increase in profitability is due to the repositioning on the export market compared to the domestic sales.
The windows and door segment is presenting a slight increase in terms of turnover, 6%, up to a level of almost 40 million lei, while the EBITDA is decreased by 69%, up to 600,000 lei. This is due to the increase in raw material costs. The flexible packaging segment is presenting a strong increase in turnover, 42%, mainly due to the consolidation of Optiplast Croatia. In terms of EBITDA, this segment is still presenting negative, is still in the negative area, 1 million lei, but with clearly improved figures compared to last year due to the operational decisions, operational improvements taken in this nine months of 2025. Compared to last year’s EBITDA, there is an improvement of 90%, presenting only 1 million negative. Moving forward, the balance sheet items are mainly impacted by two factors: a clear increase in working capital in order to support the increase in turnover.
The working capital had to be financed, so the second item that is significantly impacted in this nine months is the bank loans and leasing figures, which increased in line with the financing needs for the working capital. In terms of debt level, there is a clear improvement from 5.6. We have decreased to 5, and we are projecting to reach a level below 4x EBITDA at the end of the year. The cash flow is impacted in the same area as the balance sheet items. We can see here that we have used our cash in the working capital, and we had to finance this increased working capital through loans, where we have drawn 88 million lei in order to finance the working capital. These were the key figures, the key financial figures for this quarter, for quarter 3, 2025.
I will hand over to my colleague, Alexandros Stenian, to address the Q&A session. Thank you. Thank you very much, Bogdan. If you have any questions, please feel free to ask them either in the Q&A, in the chat, or just by starting your mic and shooting the questions. You’re letting us off the hook that easily. Okay, I see no questions. Hello. Wait a second. We have a question. Do you still look at M&A, or is the plan to focus on current business? How do you plan to turn around? What’s the plan with Teraglass? Found it. This year has been a year for consolidating the business that we bought last year. I think that we have great results because of this consolidation, because sales in Romania have been very good.
The growth that we had was to a large extent due to the market access that we gained in the Republic of Moldova and in Hungary, Austria, France, Germany, through the acquired last year. We strongly believe that this strategy to acquire businesses is the correct way. To accelerate and to continue the growth of Teraplast. However, considering all aspects involved, we are much more selective in the way we filter out opportunities. We have great products. We have huge know-how in the installation business. I would dare say that we have a competition that is less fierce in foreign markets than it is in Romania. Therefore, we are highly confident that by expanding our geographical footprint, we can achieve better results for our shareholders and also be hedged against negative fluctuations in the Romanian infrastructure market, which, again, currently is doing very well.
Although we are focusing on the current business, we are not opposed to continuing M&As, especially abroad. Regarding Teraglass, we are in the middle of an analysis for which we are using a consultant in order to find the right app for this business in the market. Of course, we are running various scenarios with Teraglass currently, but we want to make a better positioning of this business in the market so it can improve the bottom line, I would say, dramatically, and therefore to bring its contribution to the overall profits of Teraplast. I think that answers the questions in the Q&A. Thank you, Cosmin. Thank you. If there are any other questions. Okay. If not, thank you very much. Have a great weekend and see you in about three months’ time for preliminary results for the full year and the budget for 2026. Thank you very much.
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