STEICO Group (ISIN DE000A0LR936) released its Half-Year Report 2026 today, revealing a mixed performance as demand recovery in the second quarter offset a weaker start to the year, but cost pressures from geopolitical tensions weighed heavily on margins.
With the start of the construction season in the second quarter of 2026, demand for STEICO products rose significantly. At the end of the first half of 2026, the STEICO Group’s turnover stood at EUR 200.3 million, up 0.6% compared to EUR 199.1 million in the same period last year, thereby offsetting the weaker first quarter. However, the company was confronted with massive cost increases in the second quarter as a result of the US–Iran conflict and the related supply chain disruptions.
There are currently no signs of a sustained easing of the situation, and costs are continuing to rise in many areas. Price increases already implemented to offset the cost rises are taking effect with a time lag, which is having a strong impact on margins for the first half of the year. EBITDA after six months therefore stands at EUR 29.0 million, representing a decline of 22.1% compared with the same period last year (PY: EUR 37.2 million). EBIT, at EUR 14.7 million, is 30.8% below the previous year’s figure (PY: EUR 21.2 million). The EBIT margin (as a proportion of total operating revenue) stood at 7.5% at the end of the first half of the year.
The Executive Board expects that further growth can be achieved in the second half of the year and that profit margins will continue to improve. Accordingly, the management confirms the forecast for the full year 2026. Provided the economic outlook does not deteriorate further, the management expects revenue for the full year 2026 to grow by between -2% and +4% compared with the previous year. This would correspond to revenue of around EUR 375 million to EUR 398 million. EBIT is expected to be between EUR 30 million and EUR 38 million, implying an EBIT margin of 8.0% to 9.5%.
For leaders in business and technology, this report underscores how geopolitical events can rapidly disrupt supply chains and inflate costs, even for companies with strong demand. STEICO, as a global market leader in wood fibre insulation materials, demonstrates that while demand for sustainable building products remains resilient, margin compression from external shocks can significantly impact profitability. The company’s ability to pass on costs through price increases with a lag may offer a template for other firms facing similar pressures, but the uncertainty around the US-Iran conflict suggests that businesses should prepare for continued volatility. The complete financial report can be downloaded at STEICO investor relations.
