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After three years of declining revenues, Spanish company Transmesa, part of ŽP Group, is returning to growth. In 2026, the company expects a year-on-year revenue increase of approximately 11%. This positive development is driven by the acquisition of new customers, a recovery in demand, and investments in modern production technologies that are strengthening its competitiveness in international markets.

Recovery After a Challenging Period

The past three years have tested the ability of Transmesa and its subsidiaries to respond to changing global market conditions. Weaker demand in Europe, trade barriers, and the loss of a major customer from the automotive industry negatively affected financial performance. In 2025, consolidated turnover reached €41.9 million, representing a year-on-year decline of 3%.

However, 2026 has brought a positive turnaround. The company successfully expanded its customer portfolio by 27 new customers, primarily from the United States, Spain, Portugal, France, and Scandinavian countries. These new business partnerships, together with growing demand from existing customers, have helped offset previous losses and created opportunities for renewed growth.

Positive developments are also reflected in production and financial indicators. During the first nine months of the year, the combined production of Transmesa and TAP reached 12.5 million metres of tubes and profiles, representing a year-on-year increase of approximately 18%. In terms of weight, however, production declined slightly from 4,225 to 4,147 tonnes.

Consolidated turnover for the same period reached €35.6 million. Another positive indicator is that, after just eight months, the combined financial result of all three companies had already exceeded the level achieved during the entire previous year.

€5 Million Investment in the Future of Production

Alongside acquiring new customers, Transmesa is focusing on modernising its production technologies. In 2025 alone, the company invested a total of €5 million. These investments aim to increase competitiveness, expand production capabilities, and strengthen the share of higher-value-added products.

One of the key projects involved introducing the production of thick-walled cut-to-length tubes using a six-spindle deep-hole drilling machine. Equipment supplied by renowned German manufacturers TBT, Kadia, and Emag enables the company to enter new market segments and offer specialised products to customers.

The first results were not long in coming. Initial deliveries to customers in Spain and Slovakia took place as early as February 2026. A more significant increase in production and sales in this segment is expected in 2027.

New Technology Brings Greater Flexibility

Another major investment was the acquisition of a Pilger rolling mill, which was commissioned in July 2026. The new technology enables more efficient processing of shorter input materials in the production of small-diameter precision tubes, further expanding the company’s manufacturing capabilities.

It also allows Transmesa to source materials from a wider range of suppliers, increase the share of value added through its own production processes, and gradually reduce its dependence on steel imports from countries outside the European Union.

For Transmesa, this represents an important step towards greater production flexibility, a more stable supply chain, and stronger competitiveness in international markets.

The US Market Remains a Major Challenge

Despite its positive results, Transmesa continues to face several challenges. One of the most significant is the situation in the US market, which accounts for approximately 20% of the company’s annual turnover.

High import tariffs on steel, reaching up to 50%, are putting pressure on product prices and competitiveness. As a result, the company has increased prices for its US customers by 25%. Nevertheless, even under these challenging conditions, Transmesa has managed to maintain business relationships and acquire new customers.

Uncertainty also persists in European markets, where businesses are facing weaker demand and rising costs. This makes investments in more efficient production, expansion of the product portfolio, and the pursuit of new business opportunities all the more important.

2027: A Year of New Opportunities

Despite ongoing challenges, Transmesa is approaching the end of 2026 with cautious optimism. According to the company’s Chief Financial Officer, Drahomír Ďurčenka, consolidated revenues for the full year are expected to increase by approximately 11% year-on-year. After three years of decline, the company could therefore return to growth.

Key priorities remain expanding the customer portfolio, improving production efficiency, and consistently optimising costs. New technologies will also play a significant role, with their full potential expected to become more evident in the coming period.

After three challenging years, Transmesa is once again finding its path to growth. The acquisition of new customers, a recovery in production, and investments in modern technologies are beginning to deliver results. At the same time, the company is preparing for 2027, when it expects to see a more substantial contribution from its new production equipment and further expansion of business opportunities.

Author (source): Podbrezovan