European I-joist, LVL and wood fibre insulation manufacturer Steico AG says the construction industry is “continuing to stabilise”.
The German based company reported the beginning of a growth trend, with sales expected to be up 3-6% for the full year 2025 to €388m – 399m and an operating profit (EBIT) of €29m-35m.
Steico cited an assessment by market research organisation Euroconstruct, saying the construction industry is likely to have bottomed out, with an increase in construction activity of 0.3% expected for 2025.
“The downward trend in long-term indicators also appears to have been halted in the core market of Germany,” added Steico.
As well as stabilisation, Steico points to long-term indicators developing positively in Germany.
“According to the latest figures from the Federal Statistical Office, an upward trend in building permits can be seen for the first time since 2022. From January to April 2025, for example, the number of building permits for single-family homes rose by 15.4% compared to the same period last year.”
Timber construction also continues to gain market share. According to the German Timber Construction Industry Association in its 2024 annual report, the proportion of residential buildings made of timber is now 24.1% (previous year: 22.0%).
Steico’s H1, 2025 results showed revenue rose by 4.4% to €199.1m (2024 H1: €190.8m), while EBIT amounted to €21.2m, down 34% on a year ago. However, operating profitability continued to improve in the second quarter, with EBIT amounting to €12.2m (Q1 2025: €8.9m).
Sales of wood fibre insulation materials and air-injected insulation for building insulation and flooring are Steico’s core business and increased by 6.6% year-on-year in the first half of 2025.
Sales of I-joists remained largely stable in the period under review, increasing by 0.5%. Sales of LVL declined by 11.2% in the first half.
Steico said an incident occurred on 26 June 2025 at the Czarnków plant, Poland in which components of the production line for wood fibre insulation materials (dry process) were damaged – resulting in a loss of production. The company was expecting production on the line to be resumed by the end of July.
