Rockwool (ROCK) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached €906 million, up 2.3% in local currencies but flat in reported figures due to currency effects and global uncertainty, with growth driven by Eastern Europe, the U.S., and parts of Europe despite adverse weather and challenging construction markets.

• EBIT margin was 13.2%, down 2.2 percentage points year-over-year, with EBIT at €120 million, impacted by weak markets in Canada and the UK, higher logistics, and increased costs.

• Net profit from continuing operations declined by €24 million to €85 million year-over-year.

• The Russian business was deconsolidated in January 2026, resulting in a €170 million currency translation loss.

• Share buy-back of 238,060 B shares completed for €7 million.

Financial highlights

• EBITDA was €187 million (margin 20.7%), down 9% year-over-year; EBIT margin fell 2.2 percentage points to 13.2%.

• Free cash flow was -€119 million, down €68 million from Q1 2025, mainly due to higher investments.

• Net interest-bearing debt stood at €306 million, with a leverage ratio of 0.4.

• Equity ratio decreased to 70.1% from 74.9% a year ago.

• Net working capital at 14.3% of revenue, up nearly 1 percentage point year-over-year due to inventory build and higher receivables.

Outlook and guidance

• Revenue growth for 2026 expected between 3% and 6% in local currencies, supported by increased activity and midyear price increases.

• EBIT margin guidance maintained at 13%-14% for 2026, with price increases of 6–8% expected to offset input and logistics cost inflation.

• Total investments projected at around €700 million in 2026, including expansions in India, Romania, U.S., France, and land acquisitions, excluding acquisitions.