Homann Holzwerkstoffe GmbH published its interim Group report for the second half of 2025, revealing a period of strategic transition marked by revenue growth, operational challenges at a new facility, and corporate restructuring. The company, a leading European supplier of refined wooden fibreboards for furniture, doors, and coatings industries, reported Group revenues of EUR 188.1 million for the period, representing a 2.5% increase from the EUR 183.5 million generated in the same period the previous year. This growth was primarily attributed to higher sales volumes, with prices remaining largely stable across its markets.
The earnings picture was more complex. EBITDA adjusted for exchange rate effects declined to EUR 16.1 million from EUR 27.9 million in the prior-year period. The adjusted EBITDA margin based on total output fell to 8.2% from 15.5%. Management attributed this significant decrease to substantial start-up losses at the company's new plant in Pagiriai, Lithuania, which is currently in its planned ramp-up phase. Excluding the impact of these Lithuanian start-up losses, the adjusted EBITDA from the Group's existing plants was EUR 27.2 million, a decline from EUR 30.8 million in the second half of 2024. This remaining decrease was driven by a higher cost of materials ratio and increased other operating expenses. Consequently, the consolidated result for the half-year was a loss of EUR 10.1 million, compared to a profit of EUR 6.3 million a year earlier. Adjusted for the Lithuanian start-up losses, the result would have been a profit of EUR 6.7 million.
Fritz Homann, Managing Director of Homann Holzwerkstoffe GmbH, commented on the performance, stating the existing plants showed stable performance overall and slightly improved their earnings contribution compared to the first half of the year. He emphasized that the start-up losses in Lithuania were an expected effect of the ramp-up phase. Alongside operational developments, the company strengthened its financial foundation by prolonging the financing for its Lithuanian operations until 2030, a move Homann described as creating a stable and future-oriented financing structure. The Group's equity stood at EUR 186.3 million as of December 31, 2025, corresponding to an equity ratio of 30.0%.
In a significant corporate development, Homann Holzwerkstoffe concluded a settlement agreement on November 3, 2025, regarding its joint venture Global MDF Industries B.V. in Egypt. As part of this agreement, the company sold its shares back to the joint venture partner and terminated pending arbitration proceedings, effectively ending its involvement in the Egyptian market. Based on unaudited figures, the company confirmed its full-year 2025 forecast, anticipating revenues of approximately EUR 383.1 million, slightly above the previous year's EUR 369.9 million, and adjusted EBITDA of EUR 38.2 million, down from EUR 56.3 million in 2024 as previously expected. The interim Group report for the second half of 2025 is available for review here.
The report underscores the dual narrative of steady core business performance and the short-term financial burden of strategic expansion. For the wood-based panels industry, Homann's experience highlights the capital-intensive nature of scaling production capacity and the typical earnings volatility during plant commissioning phases. The termination of the Egyptian joint venture also reflects a strategic refocusing on core European operations. For investors and market observers, the key takeaways are the underlying stability of the established plants, the planned nature of the Lithuanian start-up costs, and the proactive steps to secure long-term financing, which may mitigate future financial risk. The company's ability to navigate this transition period while maintaining revenue growth will be critical for its competitive position in the European fibreboard market.
