Iran War Clouds Outlook for Villeroy & Boch - Villeroy & Boch slashes 2026 outlook as Gulf conflict disrupts trade
Villeroy & Boch has cut its financial outlook for 2026, blaming the escalating conflict in the Gulf region. The ceramics manufacturer had previously reported strong growth in 2025, with revenue rising 1.8% to €1.45 billion. Now, the war's economic fallout is forcing the company to prepare for lower earnings and sales.
The company's troubles follow a sharp deterioration in Middle East stability. Since March 2024, tensions have surged: a fragile Gaza ceasefire in late 2024 collapsed, and by early 2026, Israel and the US entered direct war with Iran. Israeli and US airstrikes killed Iran's leader in February, while over 7,600 Israeli attacks struck targets by mid-March. The chaos has disrupted trade, with Villeroy & Boch now reporting zero revenue from Israel and the Gulf. April sales in the region are expected to drop to just 30% of last year's figures.
In 2025, the firm had still managed solid results. Net profit more than doubled to €14.7 million, up from €6.6 million in 2024. It also invested €45.8 million in upgrades, including a new storage system in Merzig and advanced firing technology in Torgau. Plans to close its Belgian plant in Roeselare were part of wider efforts to streamline production. For 2026, the picture is far bleaker. Revenue is forecast to fall by a mid to high single-digit percentage. Adjusted EBIT is projected at €75–85 million, down from €97.8 million in 2025. Despite the downturn, the company still plans to invest up to €50 million this year.
The war's impact on trade routes and regional markets has forced Villeroy & Boch to lower expectations. With no immediate end to the conflict in sight, the company's earnings and sales in key areas will remain under pressure. The revised outlook reflects both the geopolitical instability and its direct effect on business operations.
