GERMANY – Surteco Group reported stable sales but a sharp decline in profitability for the first quarter of 2025 (1Q-2025), as weak market demand and rising material costs weighed on results.

The decorative surface specialist generated revenues of EUR 222.3 million in the January–March period, unchanged from the same quarter in 2024. However, EBITDA dropped 3.3% year-over-year to EUR 26.7 million, driven mainly by higher raw material expenses, particularly for paper.

The group posted a net loss of EUR 5.1 million, compared to a EUR 6.9 million profit in the first quarter of 2024—a swing of nearly EUR 12 million. The EBITDA margin declined slightly from 12.4% to 12.0%.

Reported EBITDA was significantly lower at EUR 19.5 million, reflecting one-time charges related to personnel restructuring and the decision to exit the impregnates business. The company is also pursuing footprint optimizations in its Edgebands segment to improve efficiency.

Surteco said it continues to navigate a challenging economic environment with subdued customer demand across key segments.

Business performance in 1Q-2025 was in line with expectations, confirming the guidance in the 2024 Annual Report. Full-year 2025 sales are projected between EUR 850 million and EUR 900 million, with adjusted EBITDA expected to range from EUR 85 million to EUR 105 million.

Surteco Group SE is a leading German manufacturer of paper- and plastic-based surface materials for the global furniture, flooring, and construction industries.