News Markets & Companies
Sto reports 4.6 % revenue decline in Q1 2025
In the first quarter of 2025, Sto recorded a 4.6 % drop in group revenue to EUR 324.8 million. The development was mainly shaped by weak construction activity in Germany and seasonal weather-related constraints.
In Q1 2025, Sto generated consolidated revenues of EUR 324.8 million, compared to EUR 340.5 million in the same quarter of the previous year. The decline was largely due to continued investment reluctance in the construction sector and seasonally adverse weather. Adjusted for currency and consolidation effects, revenue declined by 3.8 %.
Revenue in Germany dropped by 9.5 % to EUR 123.4 million. In addition to weather-related construction delays, reduced demand in the industrial coatings business contributed to the decline. Some customers implemented short-time work in response to lower capacity utilisation. International revenues amounted to EUR 201.4 million, a 1.4 % decrease, though stable year-on-year when adjusted. The international share of total revenue rose from 60.0 % to 62.0 %.
Regional performance and personnel developments
In Western Europe, revenues fell by 7.3 % to EUR 248.5 million, with noticeable impacts in France and Italy following changes to funding schemes for energy-efficient building renovations. In Northern and Eastern Europe, sales rose by 2.5 % to EUR 28.6 million, driven by growth in Denmark and Norway. In the Americas/Asia-Pacific region, revenue increased by 7.4 % to EUR 47.7 million, supported by higher business volumes in the US and the initial consolidation of New Zealand-based Stoanz Ltd.
As of 31 March 2025, Sto employed 5,587 people worldwide – 217 fewer than the previous year. In Germany, the workforce decreased by 81 to 3,067, partly due to temporary short-time work. A future agreement covering 2025 and 2026 was reached with the central works council to implement cost-saving measures while safeguarding jobs. Additional cost optimisation programmes continue across the Group.
Outlook for 2025 remains unchanged
Despite the seasonal operating loss being larger than in the previous year, Sto has reaffirmed its guidance for 2025. The company continues to expect group revenue of EUR 1.57 billion (2024: EUR 1.61 billion), with EBIT projected between EUR 51 million and EUR 71 million. Pre-tax profit (EBT) is expected to range from EUR 50 million to EUR 70 million. This translates into an EBIT margin of 3.1 % to 4.5 % and a return on capital employed (ROCE) between 6.8 % and 9.6 %.
