Near-record revenue and profit

A 72 percent increase in revenue, a positive profit after tax and a stable raw material supply – all in the middle of the plastics shortage and price surge caused by the Iranian conflict

• Revenue grew by 72% year on year to 57.4 million euros – the third best quarter in the company's history

• EBITDA rose more than fivefold to 5.1 million euros, at an EBITDA ratio of 9.0%

• Profit after tax came to 1.9 million euros, against a loss a year earlier

• Despite the raw material shortage and price increases caused by the Iranian conflict, security of supply and continuity of production were maintained

Sárszentmihály, 14 May 2026. – Masterplast Nyrt. achieved consolidated revenue of 57.4 million euros in the first quarter of 2026, a 72 percent increase compared with a year earlier and the third highest quarterly turnover in the company's history. Driven by strong sales of VEE products and by growing demand across the whole portfolio, EBITDA rose to 5.1 million euros and profit after tax reached 1.9 million euros – against a loss of 2.2 million euros in the same period of the previous year. An unusually cold winter held back construction demand in the first two months, which was offset by an outstanding March. The Middle Eastern conflict escalating at the end of the quarter brought new supply and pricing risks, to which Masterplast was able to respond well, with stocks built up in advance and a diversified supplier base.

The first quarter was reinforced by several independent positive effects. The 144 percent revenue growth achieved on the Hungarian market was driven primarily by sales of Verified Energy Efficiency (VEE) certificates and related products, which more than tripled the turnover of the industrial applications product group. Activity on the VEE market was outstanding in the first two months of 2026, but was followed by a decline. As a result of the Iranian conflict, demand for plastic-based construction products rose dramatically, so a wide range of the products manufactured by Masterplast secured the revenue for March. The Hungarocell Renovation Programme, suspended because it became economically unviable, does not represent a material shortfall in the company's revenue or profitability – on the contrary, it spares the company a significant loss.

Security of supply in a turbulent raw material market. Following disruptions to shipments through the Strait of Hormuz, the price of petroleum-derived raw materials – polyethylene, polypropylene, polystyrene, PVC – rose steeply, in some cases almost doubling. Thanks to existing inventory levels and a diversified supplier base, the increased raw material prices are being built into production costs only gradually, so the company expects strong profitability in the second quarter. Long-term prospects will be determined primarily by the pace at which chemical supply chains recover – a return to pre-crisis price levels is not expected this year.

Improving financial position, decreasing debt. The 72 percent growth in turnover brought a substantial improvement in capacity utilisation and stronger operating efficiency – EBIT reached a profit of 3.5 million euros, against a loss of 0.8 million euros in the previous year. The financial result showed a loss of 650 thousand euros, which is nevertheless an improvement of 806 thousand euros compared with a year earlier, partly due to exchange rate effects levelling out and partly to lower interest costs. The negative result of associated companies was weighed down mostly by the difficulties of ramping up glass wool production – by 663 thousand euros – although the company expects this effect to decrease significantly in the next quarter. Bond and loan liabilities are continuously decreasing, and repayments were met from own resources. Cash holdings decreased to 3.5 million euros, which is explained by higher receivables and the deliberate build-up of inventories.

Structural demand and growth opportunities. The EU's Energy Performance of Buildings Directive (EPBD) creates a lasting basis of demand for the thermal insulation market in every member state. In Hungary, the Otthon Start Programme, the Housing Capital Programme, the building energy and renovation programmes expected from the new government and the possibility of drawing on EU funds more widely all point to favourable market demand. Among Masterplast's subsidiaries, the products of the Szerencs glass wool factory were brought to market by the end of the quarter.

Modular construction: an answer to affordable housing and the shortage of skilled labour. Masterplast's modular construction business, built on factory prefabrication, fits the requirements of affordable housing programmes and rental housing developments particularly well. The technology can answer both the shortage of skilled labour and the challenge of fast, cost-efficient construction: it works with minimal on-site labour, standardised quality and a low environmental burden. Development of the business line is well advanced: several detached houses built with modular technology have already been handed over, and the development of apartment buildings has begun.

The reconstruction of Ukraine is a long-term opportunity. Masterplast is a well-established player on the Ukrainian construction market: it is the market leader in several product categories and holds strong positions in building material trade. In a period of reconstruction following a lasting ceasefire, this market presence could represent significant business potential for the company.

"Behind the first quarter figures there is an important message: Masterplast has proved that it can operate steadily even in a turbulent market environment. Turnover approaching a record is remarkable in itself, but it is even more important that we achieved it profitably, while from the end of March we had to take decisions amid ever more intense tensions on the raw material market. We are proud that, unlike many raw material suppliers and competing manufacturers, we kept the opportunity to buy open to our partners for as long as our stocks lasted, honouring the agreements we had made. At the same time we unfortunately had to suspend the Hungarocell Renovation Programme, because that was the responsible decision – with raw material prices surging, the programme became economically unviable. Alongside all this, our glass wool factory in Szerencs is developing continuously, and its products will be of key importance for the new energy efficiency renovation programmes expected to be announced. I am convinced that in the current chaotic market environment the stability shown by Masterplast will open up a further opportunity for growth."

– Tibor Dávid, Chairman and CEO of Masterplast Nyrt.