Outlook

The economic outlook for 2026 is subject to a high level of uncertainty. Downside risks primarily arise from geopolitical tensions, volatile energy costs, potential further tightening of trade policies, disruptions of global supply chains, and financial market risks related to high valuations in individual sectors. On the positive side, there is upward potential if technology- and AI-driven investments have an effect on production faster and more broadly than currently assumed or if trade tensions continue to ease.In line with the outlook on global economic growth, packaging paper markets are currently recording a moderate increase in demand. At the same time, temporary overcapacities exist across the industry due to newly commissioned, converted machines. The economic situation therefore remains tense for manufacturers of packaging paper and pulp although supply and demand are expected to approximate again in the medium term. Aiming to strengthen its own market position in the current situation, Heinzel Group launched optimization programs at all production sites in 2025 in order to gradually achieve cost leadership. These measures safeguard the group’s competitiveness and financial stability in the future.In 2026, the companies in Steyrermühl will be spun off from the Laakirchen Papier AG subgroup and assigned to the Zellstoff Pöls AG subgroup in order to focus management capacities on the site in Laakirchen.Based on currently available information, the current crisis in Iran is not expected to have any material direct impact on the company’s business activities because no revenue is generated there at this time. However, indirect effects on the region and on international supply chains and transport routes cannot be ruled out. HEINZEL GROUP is monitoring the development of the situation continuously.In view of geopolitically challenging times, Heinzel Group expects moderate revenues and earnings in its outlook for 2026.Vorchdorf, March 23, 2026Sebastian HeinzelKarl AchleitnerDaniela Lorenzer