Good morning, welcome to the teleconference for the preliminary results of 2025 and the budget for this year. It's a pleasure to be here together. I'm hosting this conference with our CFO, Bogdan Crăciunaș, and our Marketing Director, who's also in charge of the investor relations, Alexandra Herișanu . Since most of the attendees have already joined, I suggest that we start. First of all, as we announced last year, we took the time to, let's say, reorganize a little bit the business portfolio of Teraplast Group.
Meaning that, starting with 2026, all businesses producing pipes and related products for water, sewage, gas, energy and telecommunication infrastructure, as well as compounds, are going to function under the Teraplast brand, no matter the geography where they are located. This means that we are already having Teraplast companies in Republic of Moldova, Romania, Hungary, and Austria. Teraplast business is supported by two other companies in the group, namely Teraplast Recycling, which for the purpose of Teraplast, is a raw material supplier, being one of the largest rigid PVC recyclers in Europe, operating out of Romania.
Also Aquatice Experience, which supports Teraplast business through engineering and construction works for water treatment, purification, even desalinization as of recently, and everything that has to do with water management, operating out of Romania. Also for simplicity, all packaging business of Teraplast Group is going to function starting this year under the Optiplast brand, which is the brand of our Croatian colleagues, which is very well established in the market. Due to its high notoriety and market penetration, we decided to use this brand for everything that has to do with our flexible packaging business. This includes blow molding business of...
In Croatia and in Romania, let's say, former TeraBio Pack, both in polyethylene and biodegradable materials, as well as the stretching business with the brand Opal. Again, they are all going to be managed under the Optiplast brand. To our smaller businesses, Teraplast, which you know, the window and door producers of Teraplast Group. Promolding, an injection molding business, which has joined Teraplast Group as part of the Wolfgang Freiler transaction. It was one of the companies under the Wolfgang Freiler Group, they are going to be managed under the Promolding, under the Promolding brand. This is the new layout for the group.
Also, you will notice that we had a significant improvement in the visual presentation of the Teraplast brand, with a refreshed look, that it's more in line with our current standing in the market, our current ethos, and somehow better denotes the spirit of the company. We are the largest processor in South-Eastern Europe, with factories spanning from the Republic of Moldova all the way to Croatia, and trading companies all the way to Austria. We operate 15 production facilities spread out throughout these geographies. Of course, most of them in Romania, but also three of them in Hungary, one of them in Croatia, one of them in Republic of Moldova.
With a processing capacity of 200,000 tons and an ever-increasing regional presence as opposed to a more national presence as we were a few years ago. With this in mind, we have had a 2025, which was a year in which we broke several milestones. We went again over the RON 1 billion threshold for the turnover after a 21% increase versus 2024, which was somehow driven by a 12% increase in the production from 110,000 tons to close to 135,000 tons last year.
I think, which is the best news, is the increase in EBITDA, which has reached 86.7 million lei, after a 75% increase versus 2024. The EBITDA margin has reached 8% of the turnover, as opposed to something below 5% a couple of years ago. Another good news, we're happy to see this trend continuing, is the accelerated increase of sales outside Romania, which have increased to 34% of the total turnover after a close to 60% increase, representing 372 million lei last year.
This strategy of reducing dependency on the domestic market and increasing the sales in the common market and beyond is a strategy that we have had in the past few years and it has been also, let's say, supplemented or complemented by the acquiring the companies that we acquired throughout Europe, and we are happy to see that it's starting to show good results.
These financial figures were realized in a complex, in a complex environment, which has benefited from fairly large investments in water, gas, and sewage infrastructure in Romania, also telecom and energy infrastructure, and also solid increase from the Hungarian market, which has its complexities, considering the fact that due to political reasons, they do not have access to EU funds. They are working a lot in irrigation sector in Hungary, and we somehow benefited from this demand in the irrigation market. We have already reached second position in Hungary, and we are quite confident that in a very short timeframe, we are going to become market leaders in Hungary as well in our product groups. This high level of investments was especially visible during the first three quarters.
The fourth quarter of last year was somehow underwhelming in terms of demand due to the Romanian government's efforts to reduce the deficit, the budget deficit, therefore, investments were severely reduced in the last quarter. The good news is that the Romanian government managed to remain with debt towards the construction companies that realized this public works. Most of the payments were realized by the end of last year. The delayed payment that we saw let's say at the end of the third quarter, was to a large extent, resolved by the end of the year. Proving again that in spite any shortcomings of the public works, at the end of the day, the construction companies get paid, and therefore, we also get paid.
We saw somehow a similar trend in the orders of our customers in the compound division, with a very strong demand in the first half of the year and somehow a weaker demand in the later part of the year. All in all, the performance was decent for last year. The compounds had a very, very positive effect, impact in both our top line and bottom line. Somehow we start to see the light at the end of the tunnel for the packaging division, which has improved profitability. To be more exact, they have dramatically decreased their negative EBITDA. We are not out of the woods yet.
EBITDA is still negative, but with a significant improvement, which makes us very optimistic regarding this year's results, for this division. Last but not least, the window division had a tough year last year, with a slight decrease in volumes, and which impacted, negatively the bottom line. The impact of this division in the economy of the Group is minimal due to its, fairly small size. We had a year in which, raw material prices continued to go down, which, made us also decrease, the prices of our products. The impact is, on average, minus, 0.6%.
However, this decrease in prices was compensated by a more than 10% increase in volumes and another 11% increase generated by the newly acquired companies, which somehow led to a total increase of close to 21% of the sales last year compared to 2024. Again, we went over the RON 1 billion threshold. The demand was solid, which generated a 12% increase in quantities versus 2024. Again, somehow offset by the decrease in prices. These volumes or the distribution of the volume, this volume increase is not uniform throughout our business portfolio. Most of it comes from the installation division.
Packaging has actually had a decrease in turnover because we decided to give up some sales structures that were not providing a positive result, and therefore we actually decreased the volumes, but of course, with a very sharp decrease of the loss at the EBITDA level.
I think it becomes more and more obvious the positive impact of the M&As that we executed mostly throughout 2024 in the total economy of the group, both in terms of numbers, but also in terms of the reduced dependency on the Romanian market, which it is our intention to continue to reduce this dependency in order to better streamline our revenues and not to be impacted as much by fluctuations in any given market. I will hand over to Bogdan for some details regarding the numbers of last year and the numbers that we propose as a budget for this year. We, all of us remain at your disposal for the Q&A part.
Hello to everybody. We have on the screen the key figures for 2025 and the budget for 2026. These key figures are highlighting the efforts that the efforts for on one hand, for integration of the newly acquired entities, together with our efforts and focus for the cost control and the cost control for the Romanian entities. We are closing 2025 with a consolidated turnover of RON 1,083 million. This is impacted on one hand by the increase in volumes of the traditional business of the Romanian entities, together with the consolidation of the entities that we acquired in 2024.
In 2025, we have the impact for the entire period of the Freiler Group, which was purchased in April 2024. We have the impact of the new production facility in Sărățel, which started who started the production in April 2025. We have the impact of Optiplast Croatia, which was acquired in November 2024. The EBITDA for 2025 is reaching 87, close to 87 million lei, with an 8% EBITDA margin. The net profit is 1.2 million lei, compared to the significant loss that we incurred in 2024, of almost 20 million lei.
This positive result is proving our efforts to make the business more efficient from the cost perspective. For this year, for 2026, we are planning to reach a turnover of RON 1.26 billion, with an EBITDA over the threshold of RON 100 million. Will be RON 102 million. A slight increase in the EBITDA margin, 8.1%, and a net profit of RON 15 million. In terms of the budget split in quarters, for 2026, we are expecting to have the same seasonality.
Quarter one and quarter four, traditionally are quarters where we are incurring a negative net result. This is compensated by quarters two and three, where we basically generate the entire profitability. In respect of the results of the financial year 2025, split on activity segments, we can see that the installation segment, it's our core business generating RON 783 million, with an increase of 22% compared to 2024. This again is generated on one hand by the increase in volumes and the consolidation of Freiler Group, and the sales of the new production facility in Zsámbék.
The installation segment is our main segment also in terms of EBITDA. We generated almost RON 17, 70 million from this segment. The compounds had in 2025 a slight decrease in turnover, 7%. We reached RON 85 million. In terms of profitability, we are in line with the previous year, generating RON 9.4 million in EBITDA. The window segment had an increase in the turnover, almost RON 55 million.
Because of the increase in the production cost, especially the increase in raw material prices, like the glass, which was generated by the increase in energy costs, this generated a decrease in the profitability of this segment, where we only incurred a positive EBITDA of 300,000 lei. The packaging segment had a significant increase in the turnover, generated especially by the consolidation of Optiplast. The most important evolution is the decrease in the losses we have incurred in 2024.
You can see that, in terms of EBITDA, 2025 is closing with a negative EBITDA of only RON 1 million, compared to almost RON 14 million in the previous period. In 2025, we had also a one-off event. We have sold a land, which was classified as investment property in our financial statements. This generated a positive impact, a profit of RON 8.5 million. In terms of the balance sheet, you can see on the screen, the balance sheet elements for 2025 and the budget for 2026.
The most important impact is the working capital, which is increasing in terms of inventories, trade receivables, and trade payables in order to support the increase in the turnover. We are targeting to close 2026 with a leverage of 3.7, compared to 4, the leverage incurred for 2025. In 2025, we have paid for investments, for CapEx, RON 63 million. The major component here was the acquisition of Zsámbék production facility. In 2026, we are planning to invest almost RON 42 million. The most important component here is the investment in CapEx, in Optiplast, Croatia.
In 2025, we have received, we have collected subsidies of RON 7.5 million, and we are expecting RON 14.6 million to be collected in 2026. In terms of cash flow, you can see that the major impact in 2026 and in 2025 was the increase in working capital. Basically, we have used cash flow to support the significant increase in sales. You can see that in 2026, we will use cash flow for the increase in working capital of RON 120 million. This will be partially compensated by new finance products.
These were the key figures for 2025 and the budget for 2026. Now we are going to the Q&A sessions. Feel free to ask questions either via chat or directly here. Raise your hand, and we'll be glad to answer your questions. Okay, it seems like you're letting us off the hook quite easily today. I don't see any questions. In, in this case, thank you very much for taking the time for our, for our teleconference, and see you again in a couple of months for the results for the first quarter. Thank you again for taking the time to attend.