Sto Group achieves all forecast figures in the 2025 financial year despite persistently difficult general conditions

P R E S S  R E L E A S E
Sto SE & Co. KGaA, Stühlingen/Germany

Sto Group achieves all forecast figures in the 2025 financial year despite persistently difficult general conditions

Consolidated turnover decreases by 1.3 % to EUR 1.591 billion

Declines in and outside of Germany due to lack of impetus in the construction industry

Consolidated earnings improve: EBIT rises by 9.5 % to EUR 64.4 million and EBT by 7.2 % to EUR 65.3 million; return on sales increases to 4.1 %

Group earnings after taxes rose by 4.3 % to EUR 39.2 million compared to the previous year

Executive Board of the personally liable partner STO Management SE proposes an unaltered dividend distribution of EUR 0.31 per limited preference share and of EUR 0.25 per limited ordinary share plus a bonus of EUR 3.00 per preference and per ordinary share

Outlook for 2026: Sto anticipates a Group turnover of EUR 1.62 billion and an EBIT of between EUR 56 million and EUR 76 million

Supervisory Board of STO Management SE resolves to extend the appointment of Rainer Hüttenberger as Chief Executive Officer and reappointment of Désirée Konrad as a member of the Executive Board

Stühlingen/Germany, 30 April 2026 – The business development of Sto SE & Co. KGaA, a significant international manufacturer of products and systems for building coatings, was characterised by a challenging market environment in 2025. In addition to the great uncertainties caused by the global crises and unpredictable customs and trade regulations, the Sto Group was confronted with continued weak construction activity in many core markets. Despite slowly rising approval numbers in Germany, investment was again restrained in 2025. The high cost level and bureaucratic hurdles as well as an unstable funding policy are among the factors hindering a thorough revitalisation of the industry.

Despite the difficult general conditions, consolidated turnover of EUR 1.591 billion in the year under review slightly exceeded the forecast level of EUR 1.57 billion, which was due to the surprisingly good weather-related business in December, while activities on construction sites in many regions were limited in November due to the weather. Compared to 2024, turnover decreased by 1.3 % (previous year: EUR 1.612 billion). Adjusted for all overall negative currency translation and consolidation effects, there was a slight growth in turnover of 0.5 % in comparison to the previous year.

Despite the obstacles, consolidated earnings improved in 2025 and fully met the forecast figures: EBIT rose by 9.5 % year-on-year to EUR 64.4 million (forecast: EUR 51 million to EUR 71 million; previous year: EUR 58.8 million) and earnings before taxes (EBT) increased by 7.2 % to EUR 65.3 million (forecast: EUR 50 million to EUR 70 million; previous year: EUR 60.9 million). The resulting return on sales was 4.1 % (forecast: 3.1 % to 4.5 %; previous year: 3.8 %). The return on capital employed (ROCE) totalled 8.7 % (previous year: 7.8 %); a figure of 6.8 % to 9.6 % had been forecast.

The increase in earnings was mainly due to cost-saving measures with which Sto reacted to the sales-related decline in capacity utilisation at an early stage. They were particularly effective in the fourth quarter, accompanied by a slight improvement in turnover. This compensated for the lower business volume and the continued tense situation on the sales price side and slightly increased the gross profit margin – supported by a changed product mix and in some cases more favourable purchasing prices. In terms of personnel, the agreed pact for the future with cost-saving measures at the German companies Sto SE & Co. KGaA and StoCretec GmbH had a particularly positive impact.

On 31 December 2025, the Sto Group employed 5,482 employees worldwide, 117 fewer than on the reference date of the previous year (31 December 2024: 5,599).

The Sto Group's financial situation and assets and liabilities situation remained very solid in the year under review. The equity ratio improved from 64.2 % on the same day of the previous year to 65.5 %. Cash and cash equivalents increased from EUR 110.9 million to EUR 114.7 million, while net financial assets amounted to EUR 113.0 million at the end of December 2025 (31 December 2024: EUR 109.2 million). The cash flow from operating activities increased to EUR 94.5 million (previous year: EUR 90.5 million).

The personally liable partner of the Company, STO Management SE, will propose to the Annual General Meeting on 18 June 2026 through its Executive Board an unaltered dividend payout totalling EUR 21,036,780.00. Accordingly, the limited preference shareholders are again to receive an ordinary dividend of EUR 0.31 and a bonus of EUR 3.00, i.e. a total of EUR 3.31 per share (previous year: EUR 3.31). An ordinary dividend of EUR 0.25 and a bonus of EUR 3.00, i.e. a total of EUR 3.25 per share, will again be paid out to the limited ordinary shareholders (previous year: EUR 3.25).

The general conditions will remain very challenging in the 2026 financial year. The consequences of international wars, conflicts and trade disputes, as well as the intensity with which political decision-makers pursue climate policy targets, promote energy-related measures and support residential construction, are almost impossible to predict. This results in risks, but also opportunities for Sto.

In the first three months of 2026, turnover in the Sto Group remained below the previous year's level and below expectations, particularly due to unfavourable weather conditions in the early months of January and February. The deficit usually achieved in the first quarter due to the seasonal nature of business development caused by the weather is likely to have increased compared to the previous year, which is mainly due to lower turnover.

For the year 2026 as a whole, Sto SE & Co. KGaA is forecasting only slight growth in turnover to EUR 1.62 billion for the Group due to the current increase in uncertainties. EBIT is expected to be in the range of EUR 56 million to EUR 76 million and earnings before taxes (EBT) between EUR 55 million and EUR 75 million. The resulting return on sales is expected to be between 3.3 % and 4.7 %. The return on capital employed (ROCE) is expected to be between 7.4 % and 10.2 %.

Negative impacts that may result from the war between Iran, Israel and the USA described in the annual report, that at the time of compiling the management report was still ongoing, are becoming more likely as the conflict continues and expands. The magnitude of the consequences cannot be reliably quantified. At present, it must be expected that the war will lead to price increases in purchasing. No adverse effects on demand in the markets relevant to Sto or restrictions in the execution of business activities or the supply of raw materials, bought-in products and energy are currently expected.

Personnel-related matters

At its meeting on 23 April 2026, the Supervisory Board of STO Management SE, as the personally liable partner of Sto SE & Co. KGaA, resolved the renewal of the Executive Board contract of Rainer Hüttenberger until 30 June 2029 and, at the same time, the extension of his appointment as Chief Executive Officer of the Company. The extension was thus in line with Sto's principles, which stipulate a standard age limit of 65 for members of the Executive Board. The Supervisory Board's decision emphasises the continuity of the Sto Group's strategy process. Rainer Hüttenberger has been a member of the Board since 1 April 2011 and Chief Executive Officer since 1 January 2024.

At its meeting on 23 April 2026, the Supervisory Board also resolved to reappoint Désirée Konrad as Executive Board member of STO Management SE with effect from 1 May 2026, following its assurance in accordance with Section 84 (3) German Stock Corporation Act. The reappointment took place after Ms Konrad was on maternity and parental leave from 1 January 2026 to 30 April 2026. Prior to her maternity leave, Ms Konrad had been a member of the Board since 1 September 2023 and is responsible in particular for Finance.

The 2025 Annual Report will be available for download at www.sto.de in the section 'Investor Relations' under 'Geschäfts- und Zwischenberichte' (Annual and interim reports).
 

Sto SE & Co. KGaA is a major international manufacturer of products and systems for building coatings. The company is a leader in the business field of external wall insulation systems. Sto's core product range also includes high-quality facade elements, as well as renders, plasters, and paints for building exteriors and interiors alike. Another focus is placed on concrete repair, floor coatings, acoustic systems, and rainscreen cladding systems.

Sto SE & Co. KGaA contact person:

Rainer Hüttenberger, Chief Executive Officer of STO Management SE,

Contact via: Tel.: +49 7744 57-1516, e-mail: s.ebi@sto.com

Contact to the media:
Claudia Wieland, Redaktionsbüro tik, tel.: +49 911 98817071, e-mail: cw@tik-online.de