Teraplast (TRP) investor relations material

Executive summary

• Q1 2026 was marked by severe weather, geopolitical volatility, delayed state budgets, and Hungarian elections, leading to underperformance versus budget and prior year.

• Revenue declined 6% year-over-year to RON 235.5 million, with a 7% drop in volumes and a 58% decrease in EBITDA to RON 8.9 million; net result was a loss of RON 10.6 million compared to a profit of RON 1.2 million in Q1 2025.

• All business segments reported lower profitability, with negative net results in three out of four segments.

• Activity improved in March as orders and projects resumed, but overall performance remained below potential.

• M&A activity included the acquisition of Aquatica Experience Group and start of production at the Zsámbék facility in Hungary.

Financial highlights

• Consolidated net sales fell to RON 235.5 million from RON 249.2 million year-over-year; EBITDA dropped 58% to RON 8.9 million, with a margin of 3.8%.

• Net result was a loss of RON 10.6 million versus a profit of RON 1.2 million in Q1 2025.

• Gross margin improved to 40%, up 4 percentage points year-over-year, despite higher salaries and operating expenses.

• Sales outside Romania were RON 82.2 million, representing 35% of turnover, down from 38% in Q1 2025.

• Cash and cash equivalents decreased to RON 20.5 million from RON 38.4 million at year-end 2025.

Outlook and guidance

• Management expects profitability and leverage to improve in subsequent quarters as market conditions normalize and infrastructure projects resume, especially in Hungary.

• Anticipates positive impact from EU funds in Hungary starting Q3 2026.

• Packaging segment expected to continue positive EBITDA trend and benefit from market consolidation.

• Management remains focused on operational flexibility and rapid response to market changes.