Rockwool (ROCK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached EUR 959 million, up 4% year-over-year, with acquisitions and organic volume each contributing 2 percentage points; pricing impact was neutral.

• EBIT was EUR 154 million, up 1% year-over-year, with a margin of 16.0%; EBITDA increased to EUR 223 million (23.2% margin).

• Net profit remained stable at EUR 116 million compared to Q1 2024.

• Free cash flow was EUR -47 million, mainly due to tax settlement timing and working capital development.

• Strong North American and technical insulation performance offset declines in Eastern Europe and Russia.

Financial highlights

• Revenue grew 4% year-over-year to EUR 959 million; EBITDA rose 3% to EUR 223 million; EBIT increased 1% to EUR 154 million.

• EBITDA margin was 23.2%, down 0.3 percentage points; EBIT margin was 16.0%, down 0.5 percentage points.

• Free cash flow was EUR -47 million, with net cash position at EUR 231 million and equity ratio at 76.6%-77%.

• Net working capital was 12.0% of revenue, totaling EUR 466 million.

• Main investments totaled EUR 93 million in Q1, focused on capacity expansion and electrification projects.

Outlook and guidance

• Full-year 2025 guidance maintained for low single-digit revenue growth in local currencies and EBIT margin around 16%.

• Investment level for 2025 expected at around EUR 450 million, excluding acquisitions.

• No expectation of large volume growth for the remainder of the year due to market slowdown, especially in Eastern Europe and Russia.