Homann Holzwerkstoffe has sharply reduced its earnings expectations for 2026 after preliminary first-half figures showed EBITDA falling into negative territory. High start-up losses at the group\u2019s new Lithuanian MDF\/HDF plant remained the main burden, while weak furniture demand and rising input costs added further pressure.<\/p>\n
Homann generated preliminary revenue of \u20ac194.4 million in the first half of 2026, virtually unchanged from \u20ac195.0 million a year earlier. Profitability, however, deteriorated substantially, with currency-adjusted EBITDA dropping to -\u20ac1.4 million from +\u20ac22.1 million in H1 2025.<\/p>\n
The result highlights the financial impact of the Pagiriai operation in Lithuania. Excluding start-up losses associated with the new plant, Homann said first-half adjusted EBITDA would have amounted to \u20ac13.9 million. This implies a negative impact of more than \u20ac15 million from the ramp-up during the first six months alone.<\/p>\n
The Lithuanian plant has already prompted Homann to take more extensive action on capacity. MDF\/HDF production at Pagiriai is scheduled to stop from January 2027 for at least 12 months and potentially as long as 21 months, depending primarily on the recovery of demand from the furniture industry.<\/p>\n
Weak demand combines with steep cost increases<\/strong><\/p>\n The problems in Lithuania were not the only factor behind the weaker result. Homann pointed to subdued orders from furniture manufacturers and a significant increase in its cost base during the first half.<\/p>\n Chemicals, timber, energy and transport all became more expensive following the Middle East conflict, with increases for some inputs exceeding 50%. Homann said most of the higher costs have been incorporated into customer prices since June, while demand has recently shown initial signs of improvement.<\/p>\n The pressure follows an already difficult 2025 for the group. Homann's adjusted EBITDA declined to \u20ac38.2 million last year from \u20ac56.3 million in 2024, with the Pagiriai start-up already accounting for a substantial part of the decrease.<\/p>\n EBITDA forecast drops to \u20ac10\u201315 million<\/strong><\/p>\n The first-half deterioration has now led to a major revision of the 2026 outlook.<\/p>\n Homann expects annual revenue to remain close to the \u20ac383 million recorded in 2025, abandoning its previous expectation of moderate growth. The change in earnings guidance is considerably larger.<\/p>\n Full-year currency-adjusted EBITDA is now forecast at just \u20ac10\u201315 million. At the start of the year, Homann had expected a moderate increase from the \u20ac38.2 million achieved in 2025.<\/p>\n Even without the Lithuanian start-up losses, earnings are expected to remain below last year's level. Homann forecasts adjusted EBITDA before these costs at \u20ac34\u201339 million, compared with \u20ac54 million in 2025.<\/p>\n The group expects some recovery during the second half as higher selling prices take effect and losses in Lithuania are reduced. Measures at Pagiriai are expected to improve the plant's operating result by \u20ac5\u20136 million in H2 compared with the first half.<\/p>\n Homann will publish its full first-half report on September 11, 2026.<\/p>","protected":false},"excerpt":{"rendered":" Homann Holzwerkstoffe has sharply reduced its earnings expectations for 2026 after preliminary first-half figures showed EBITDA falling into negative territory. High start-up losses at the group\u2019s new Lithuanian MDF\/HDF plant remained the main burden, while weak furniture demand and rising … Continue reading