TeraPlast Q1 2025 presentation: Revenue surges 41% as international sales triple

TeraPlast (BVB:TRP) reported strong Q1 2025 results, with consolidated revenue up 41% to 249.2 million LEI and EBITDA surging 76% to 21 million LEI, driven by international expansion and strategic acquisitions, particularly the Wolfgang Freiler Group and Optiplast. International sales tripled year-over-year, now representing 38% of total turnover, and the company achieved a net profit of 1.2 million LEI compared to a 2.5 million LEI loss in Q1 2024. Looking ahead, TeraPlast projects full-year revenue of 1,005.9 million LEI and EBITDA of 88 million LEI, focusing on consolidating its businesses and improving profitability.

Analysis

TeraPlast (BVB:TRP) demonstrated robust financial health in Q1 2025, reporting a 41% year-over-year increase in consolidated revenue to 249.2 million LEI and a significant 76% surge in EBITDA to 21 million LEI. This performance translated into an improved EBITDA margin of 8.4%, up from 6.7% in Q1 2024, and a notable turnaround to a net profit of 1.2 million LEI from a 2.5 million LEI loss in the prior year's quarter. The growth was primarily fueled by a tripling of international sales, which now constitute 38% of total turnover compared to 17% in Q1 2024, and the successful integration of strategic acquisitions, namely the Wolfgang Freiler Group and Optiplast, which contributed 47.9 million RON (27.1%) to revenue growth. Volume increases also played a crucial role, adding 28 million RON (15.8%), while stable gross margins were maintained at 36% despite a 2.0% revenue reduction from price changes due to lower production costs. The Installations segment remains the largest contributor, accounting for 72% of revenue. The company significantly outperformed its Q1 2025 budget, with revenue exceeding targets by 21% and EBITDA by 72%. Looking forward, TeraPlast projects full-year 2025 revenue of 1,005.9 million LEI (a 12% increase over 2024) and EBITDA of 88 million LEI (a 69% increase), with a net profit target of 5.2 million LEI. This outlook is supported by plans to consolidate businesses, expand in existing markets, improve profitability with synergies from new subsidiaries expected in H2 2025, and planned investments of 64.7 million LEI. Net debt stood at 306.8 million LEI, with management anticipating a reduction to below 4x EBITDA by year-end.

Key Decisions for Investors

• Given TeraPlast's strong Q1 2025 results, driven by successful acquisitions and significant international sales growth, investors should assess the sustainability of this momentum and the company's capacity to meet its ambitious full-year guidance of 12% revenue and 69% EBITDA growth.
• Monitor the integration progress of the Wolfgang Freiler Group and Optiplast, as the realization of anticipated synergies in H2 2025 is critical for achieving the projected profitability improvements and EBITDA targets.
• Closely track the company's net debt levels and its progress towards the stated goal of reducing leverage to below 4x EBITDA by year-end, alongside its ability to manage raw material price volatility, particularly in the Packaging segment.
• Consider the strong outperformance against Q1 budget as a positive indicator of execution capability, but await Q2 and Q3 results, which are projected to be seasonally stronger, to further validate the annual growth trajectory and profitability targets.