First-Half 2025 Results Reflect Mixed Regional Performance

Belgian building solutions group Deceuninck has reported steady performance for the first half of 2025, maintaining profitability despite subdued demand in key markets and geopolitical headwinds.

Sales fell by 9% year-on-year to €383.6 million, while adjusted EBITDA declined 16.4% to €54.6 million, resulting in a margin of 14.2% compared with 15.5% a year earlier.

However, net profit increased 39% to €11.5 million, supported by lower financial expenses and improved cost control.

Market Dynamics: Caution and Contrast

CEO ad interim Francis Van Eeckhout described the period as “challenging, yet stable,” noting significant regional contrasts.

In Europe, demand remained weak across the construction sector, though some countries showed early signs of stabilisation.

In Türkiye, high interest rates and inflation continued to weigh on consumer confidence and investment activity, reducing profitability.

In contrast, North America offered a more encouraging picture, with modest growth of 1.6% in external sales to €82.8 million, driven by improved market sentiment and a favourable product mix.

Cost Management and Strong Balance Sheet

The company benefited from the structural cost savings following the closure of its German plant in 2024. Capital expenditure was reduced to €10.5 million from €19.7 million last year, focusing on efficiency upgrades across European sites.

Net debt decreased 20% to €113.5 million, with leverage down to 1.1x adjusted EBITDA. Working capital improvements, primarily through lower inventory levels, contributed to stronger cash generation and a more resilient balance sheet.

Outlook: Stability with Selective Optimism

Deceuninck expects the remainder of 2025 to remain challenging, with uneven recovery across regions.

In Europe, markets remain fragmented, while North America may see gradual improvement. Türkiye is likely to face continued macroeconomic pressure.

“We remain focused on operational and commercial excellence while delivering value through innovation and sustainable product offerings,” said Van Eeckhout. “Our long-term strategy remains unchanged, and we are well-positioned to capture profitable growth as market conditions improve.”

About Deceuninck

Founded in 1937, Deceuninck ranks among the top three independent global manufacturers of PVC, aluminium and composite window and door solutions. Headquartered in Hooglede-Gits, Belgium, the company operates 17 manufacturing facilities and 21 distribution sites across Europe, North America and Turkey. Listed on Euronext Brussels (DECB), Deceuninck continues to focus on reliability, innovation and sustainability in the building materials sector.