Iran War Clouds Outlook for Villeroy & Boch - Villeroy & Boch cuts 2026 revenue forecast as Gulf conflict cripples trade

Villeroy & Boch has slashed its revenue forecasts for 2026, blaming the escalating conflict in the Persian Gulf. The ceramics manufacturer now expects earnings to fall sharply after a modest rise in profits last year. Markets in Israel and the Gulf have already ground to a halt, with April sales plunging to just 30% of previous levels.

The company had reported steady growth in 2025, with revenue climbing 1.8% to around €1.45 billion. Net profit also doubled, rising from €6.6 million in 2024 to €14.7 million. Efforts to streamline operations included plans to close its plant in Roeselare, Belgium, as part of a wider production network overhaul.

But the war in the Gulf has disrupted trade since early 2026. The Strait of Hormuz now faces potential blockades, energy prices have soared—crude oil jumping from $72 to over $82 per barrel—and regional instability has worsened. Israel's simultaneous conflicts with Hamas, negotiations with Syria, and demands for Hezbollah's disarmament have added to the turmoil.

Villeroy & Boch now predicts a revenue drop in the 'mid to high single-digit percentage range' for 2026. Adjusted EBIT is forecast at just €75–85 million, down from earlier expectations. The firm employs nearly 12,000 people worldwide, including 1,700 in its Saarland base, but its Gulf and Israeli markets currently generate no income at all.

The revised outlook reflects the severe impact of the Gulf conflict on trade and operations. With no revenue in key markets and April sales collapsing, the company faces a sharp decline in earnings. The situation underscores how regional instability can disrupt even well-established global businesses.