Declining revenue but improving profitability at Masterplast

Key results

• Third-quarter revenue of 36.0 million euros, a 19% decrease compared with the same period of the previous year
• Quarterly EBITDA of 3.5 million euros, with an EBITDA margin of 9.8%
• Nine-month revenue of 136.5 million euros, a 24% increase compared with the same period of the previous year
• Nine-month EBITDA of 14.6 million euros, with an EBITDA margin of 10.7%

In the third quarter of 2026 Masterplast Nyrt. achieved revenue of 36.0 million euros, 19 percent below the same period of the previous year. The more subdued performance was influenced by weak European construction demand, outdoor work slowed by the exceptional summer heat, and the absence of the previous year's sales of certified energy savings (HEM) linked to the Energy Efficiency Obligation Scheme (EKR) and of the products associated with them. Despite the lower revenue, the company's profitability improved: quarterly EBITDA reached 3.5 million euros, and the EBITDA margin rose from 7.7 percent a year earlier to 9.8 percent.

In the third quarter unfavourable market conditions affected sales of several product groups. In the same period of the previous year HEM-related sales generated significant revenue, which was not repeated this quarter. Revenue from external thermal insulation composite systems fell by 4 percent, and that from roofing membranes and roofing elements by 15 percent. Glass fibre mesh sales were also held back by customer uncertainty arising from the investigation launched by the European Commission into the possible circumvention of anti-dumping measures. Revenue from thermal, acoustic and waterproofing insulation materials, on the other hand, remained at the previous year's level, and within this, sales of in-house manufactured XPS products grew significantly. Weaker market demand was felt to differing degrees across the group's sales territories. The largest decline was seen in Hungary, primarily due to the absence of earlier HEM-related sales, while revenue grew in Slovakia, Serbia, Croatia and Ukraine. Overall capacity utilisation in production eased, while XPS production ran at full capacity on the back of increased demand.

Alongside lower sales volumes, more favourable margins and improved operating efficiency supported profitability. Earlier strategic raw material purchases gave the company a reliable supply base, enabling it to offer competitive terms to its partners even in a period characterised by rapid changes in raw material prices. The favourable purchasing position, together with material expenses and changes in inventories that decreased at a higher rate than revenue, partly offset the decline in revenue. Output at the Szerencs glass wool plant is improving steadily, although the result of the associated company continues to be weighed down primarily by losses related to the production ramp-up. Thanks to the restructuring of the financing structure, other financial expenses decreased significantly.

Masterplast's revenue for the first nine months reached 136.5 million euros, an increase of 24 percent compared with the same period of the previous year. EBITDA rose to 14.6 million euros, with an EBITDA margin of 10.7 percent. Profit after tax showed a gain of 5.7 million euros, compared with a loss of 5.2 million euros a year earlier.

For the fourth quarter management expects a somewhat improving market environment compared with the third quarter; however, without the HEM-type sales effect of last year's period, it anticipates a weaker quarter than the same period last year, with profitability similar to that of the third quarter.

In the medium-term outlook, the role of energy-efficient building renovation remains decisive. Demand in the new housing construction market is expected to remain subdued, and the effect of the announced housing programmes may only appear later in building material orders.

According to plans presented by the Hungarian government on 27 October, the Wekerle+ Energy Renovation Grant and Loan programme aims to modernise approximately 30,000 residential properties a year between 2027 and 2030, from a planned budget of around 633 billion forints. The scheme supporting the renovation of family houses may start in February 2027, and the programme for multi-unit residential buildings in March. If implemented, the measures, which also support thermal insulation, could stimulate domestic demand for insulation materials and improve Masterplast's sales opportunities as well as the utilisation of its production capacities. The actual market impact, however, depends on the final regulations, the level of uptake and the pace at which investments are carried out. The planned renewal of the EKR could represent a further opportunity for the renovation market.

Masterplast's modular construction business, which moved to a site offering greater production capacity in the third quarter, may also be linked to later developments aimed at affordable housing and student accommodation development. The reconstruction of Ukraine following a possible ceasefire agreement could represent a further long-term opportunity for the company.

"After the first half, we faced a more subdued market environment in the third quarter. Construction demand was affected by unfavourable weather and by the absence of sales effects seen in the previous year. I consider it important that, even with lower revenue, we were able to maintain the profitability of our operations, supported by a deliberate purchasing strategy and more efficient management. We are assessing the outlook for the coming period with caution. Support for building energy renovations could improve market demand in the medium term, but the actual impact of the announced programmes depends on their final conditions and on the pace at which investments are implemented. We remain focused on ensuring predictable operations and appropriate profitability in a changing market environment." – Tibor Dávid, Chairman and CEO of Masterplast Nyrt.

The third-quarter report in full: Interim management statement

Masterplast Nyrt.

Founded in 1997, the Masterplast group is the largest Hungarian majority-owned building materials manufacturer and distributor in the Central and Eastern European region. The group operates subsidiaries in 10 countries and sells its products to a further 30 countries. Listed in the Premium category of the Budapest Stock Exchange, the company's revenue in 2025 was 171.2 million euros.

Press contact: Masterplast Communications | press@masterplast.hu