NORDWEST is investing in the future of the industrial business-to-business sector
Dortmund, 12.05.26 - Following a 2025 financial year shaped by structural and economic challenges, NORDWEST Handel AG is looking ahead to 2026 with cautious confidence. The Management Board expects the NORDWEST Group’s business volume in the 2026 financial year to exceed the previous year’s level, largely due to the acquisition activities that were already initiated in the previous financial year. Accordingly, a positive business performance is also anticipated at the earnings level.
From a market perspective, the German economy is expected to recover very moderately. Falling financing costs, more predictable framework conditions and continued demand for housing, renovation and infrastructure point to a marginal recovery, albeit without any sudden momentum. At the same time, structural obstacles to growth remain, such as high energy and location costs, weak investment momentum in industry and increasing regulatory requirements. Against this backdrop, NORDWEST expects the market environment in 2026 to remain challenging overall, albeit with slight improvement.
Taking these factors into account, the Management Board expects the NORDWEST Group to generate business volume of around €4.9 billion in the 2026 financial year, with a fluctuation range of ±0.9%. At Group level, earnings before interest and taxes (EBIT) are expected to amount to €11.8 million, with a range of ±€0.9 million. Due to increased financing costs – particularly in connection with financing the realignment of NORDWEST’s own warehouse business in Alsfeld – earnings after income taxes will be significantly below the EBIT development.
Development in the first quarter of 2026
In the first three months of the current financial year, the NORDWEST Group generated business volume of €1,201.3 million. At −0.8%, this development was slightly below the previous year’s figure. In the central payment and drop shipment business, total volume of €1,144.0 million was achieved in the first quarter, only marginally below the previous year (−0.2%), while the warehouse business fell significantly short of the previous year’s figure at −11.2%.
Development of business volume in individual areas
With business volume of €419.2 million, the Steel division exceeded the previous year by +6.5% due to higher tonnage sold. The TeamFaktor/Services division also exceeded the previous year’s figure as at March, with business volume of €317.0 million and an increase of +3.3%. The Construction division completed the first quarter with business volume of €91.1 million and a decline of −22.0%. This was due to the persistently strained economic situation and the loss of a major specialist trade partner in the central payment business in the second half of 2025. The Trades & Industry division generated total business volume of €281.8 million, putting it −6.2% below the previous year. Here too, the decline was primarily due to the loss of a major specialist trade partner. The warehouse business continued to be shaped by the broader economic climate in the first quarter. This trend is set to continue throughout the current year, meaning that the primary focus will be on acquiring new partners. The Building Services division missed the previous year’s figure marginally overall, with business volume of €92.3 million (−0.3%).
Forecast for the 2026 financial year
NORDWEST’s business development in the coming year will again be closely linked to the economic situation, particularly in construction-related segments. Growth impetus is expected above all from the acquisition of new specialist trade partners, the expansion of existing customer business and the intensification of cooperation with industrial and trade partners. NORDWEST continues to focus on providing all partners with the best possible support through high-performance services and tailor-made solutions.
NORDWEST’s consistently forward-looking strategy is always aimed at ensuring stability, investment capability and future viability, even in a challenging market environment. The trade association is continuing to systematically implement the major projects already initiated in order to be optimally prepared for a sustainable economic recovery. Key elements of this future agenda include the further development of the exclusive brand TECWERK, which is being systematically positioned in the market through a wide range of marketing and sales initiatives, the expansion of the exclusive brand delphis in the Building Services division and the ongoing expansion of financial services in factoring and central payment – both nationally and internationally. In addition, NORDWEST remains permanently committed to driving forward the targeted digitalisation of business processes and thereby increasing efficiency within the trade association and among its affiliated partners.
Focus on the warehouse business
In the focus of these future investments is the new, state-of-the-art NORDWEST logistics centre in Alsfeld, Hesse. With the upcoming go-live of the new central warehouse, additional conditions will be created to further strengthen logistics performance and secure long-term growth. Short delivery times and the option of direct delivery to end customers help specialist trade partners reduce their capital commitment through lower inventories at the point of sale. The go-live of the new mega-warehouse will begin in the middle of the year and will be completed by the end of the first quarter of 2027 with the full commissioning of the automated small parts warehouse (ASPW). By then, the numerous benefits for specialist retail partners and their customers will be fully realised.
Expansion of European activities
Following the successful start of cooperation with the Belgian Van Marcke Group and the French trading company SAS Richardson, international central payment in the Building Services division is to be expanded further this year. At the same time, international offerings and services are to be extended to the product areas of Construction and Trades & Industry.
With its extensive expertise, the NORDWEST subsidiary TeamFaktor NW GmbH acts as a service provider supporting the processes involved in international central payment, which is handled by a partner credit institution.
In general, NORDWEST has accelerated the expansion of its European business through new suppliers, collaborations and dealers over the past year and will continue to do so in the current financial year.
Expected development of the individual divisions
A continued challenging market is expected in the construction-related segments in 2026. At the same time, initial positive signs are emerging in residential and commercial construction, as well as through announced government investment programmes. At the same time, revenue losses resulting from insolvencies that have already occurred must be taken into account, meaning that the Construction division as a whole is still expected to remain volatile.
For 2026, NORDWEST expects business activity in the Trades & Industry division to pick up. Growth is expected to be driven in particular by the expansion of activities in neighbouring European countries and the onboarding of further specialist trade partners – especially in the warehouse business, with its processes geared to the needs of specialist dealers.
In the Steel division, the forecast for 2026 remains subject to uncertainty due to volatile price and volume developments, global uncertainties and new regulatory requirements – particularly the introduction of the Carbon Border Adjustment Mechanism (CBAM).
In the Building Services division, if at all, a minimal economic improvement is expected in 2026, driven primarily by momentum in residential construction and renovation. The focus is on the further expansion of international specialist trade partner structures. At the same time, departures of specialist trade partners must be offset by new business.
For the TeamFaktor/Services division, business development is expected to remain broadly balanced overall, taking customer additions and departures into account.
