Still underwater

After the massive slump in 2023, which reflected the downturn following the hype year of 2022, the balance sheets showed only a slight stabilization in 2024 and remain below the zero line. With cumulative losses of €89.1 million, compared to €144 million in the previous year, the sector remains far from a real recovery. And the forecasts for the current fiscal year 2025 give little hope for a rapid turnaround. On the contrary, another year in the red seems likely.

Solid foundations ...

The average equity ratio of the analyzed companies was 60%, which shows that they are actually sound at their core. The companies are still able to adapt to financial fluctuations. Overall, the sector appears to rest on solid foundations.

… but only single-digit EBITDA margins

However, manufacturing companies should achieve a double-digit EBITDA margin. In 2024, Binderholz, whose margin remained at 11%, and Holzindustrie Offner, with an EBITDA margin of 10%, were the only companies to accomplish this. All others fell short. Gone are the years 2021 with an average EBITDA margin of 28% and 2022 with an average of 23%.

The highest margins ever reported on by the Holzkurier were achieved in 2021 by Binderholz (36.6%) and Pfeifer Holding (35%). By 2024, the situation was quite different for both (Binderholz: 11%; Pfeifer Holding: 7%). The desired margin lies somewhere in between. Talking to the Holzkurier, Reinhard Binder, CEO of Binderholz, put it as follows: “15% constitutes a sustainable EBITDA margin. This is the only way companies can cope with the higher financing costs and increased investment costs compared to the pre-Covid-19 era. The panel and paper industries are already showing us how it’s done.”

Only two companies with positive results

The cumulative EBIT/EBT of all companies included in the analysis was -€57 million, and thus a halving of the losses accumulated in 2023 (-€124 million).

In 2024, only Binderholz and Johann Offner Holzindustrie achieved positive results. All others slipped into the red: For the first time ever (since surveys began in 2011), Hasslacher Holding (-€6.9 million) and Holzindustrie Maresch (-€660,000) posted losses.

FMMS (i.e. Mayr-Melnhof Holz) again recorded negative EBIT of €16.2 million in 2024, as did Pfeifer Holding with -€56 million. Nevertheless, both companies managed to significantly reduce their losses: Mayr-Melnhof Holz’s losses decreased by around €30 million in 2024, while Tyrolean family business Pfeifer reduced their losses by approximately €81 million.

Higher sales impacted by costs

Despite adverse market conditions, Pfeifer Holding was able to increase their sales (among other things, the acquisition of Pölkky***) and achieve positive operating cash flows. However, the company remains in the red due to high costs and financing expenses.

Alarming: EBITDA not yet at pre-Covid levels

Cumulative EBITDA of the six analyzed companies rose to €404 million (+4%) in 2024. This is only a third of what was achieved in the hype years of 2021 and 2022. And it is still below the levels of the pre-Covid years of 2018, 2019, and 2020. At least, though, EBITDA are higher than in 2017. At €4.6 billion, sales generated by the analyzed companies remained at the 2023 level. In terms of sales trend, Pfeifer Holding stands out with +11% (among other things, the Pölkky acquisition***). Conversely, Holzindustrie Maresch, which processes softwood only, saw its sales decrease by a massive 17% within a single year, falling to €148 million.

Sales 50% higher than in pre-Covid years

However, a multi-year comparison shows that sales in 2023 and 2024 were around 50% higher than in the pre-Covid years (2018 to 2020). This clearly reflects the higher prices for lumber and further processed products, as well as the investments made.

No to high liabilities

At €0, Offner Holzindustrie and Holzindustrie Maresch have no liabilities at all (over a one-year term), while Binderholz’s liabilities are the highest at €1.06 billion. In 2024, they were slightly lower (€4 million) than in 2023.

Pfeifer Holding had accumulated net debts of approximately €300 million in 2024 (2023: €264 million). Debt also rose sharply at Hasslacher Holding, reaching almost €300 million in 2024, compared to €230 million in 2023.

Notably, Hasslacher Holding increased its in-house use of lumber to an impressive 72% in 2024, up from 66% in 2023.

*** According to Pfeifer’s balance sheet, the purchase price for Pölkky Oy has not yet been finalized, as earn-out clauses based on the 2024 and 2025 financial years must be fulfilled. Furthermore, there is a legal dispute in connection with the acquisition of the shares.