Rockwool (ROCK) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue increased 1% to 1,947 MEUR, with acquisitions contributing 2% growth; organic growth was flat excluding Russia, and net profit declined by 20 MEUR year-over-year to 238 MEUR.

• Q2 2025 revenue was 988 MEUR, down 2% year-over-year; EBIT fell 19% to 153 MEUR, and net profit declined by 20 MEUR.

• Profitability declined due to unfavorable mix, lower factory efficiency, production stoppages, and higher depreciation from investments.

• Macroeconomic and geopolitical uncertainties, especially in construction, continue to challenge performance, with significant project delays in North America.

• Technical insulation and several European markets performed well, while the Nordics and Russia saw double-digit sales declines.

Financial highlights

• H1 2025 EBITDA was 450 MEUR (23.1% margin), down 4% year-over-year; Q2 EBITDA was 227 MEUR (23.0% margin), down 10%.

• H1 2025 EBIT fell 10% to 307 MEUR (15.8% margin); Q2 EBIT dropped 19% to 153 MEUR (15.5% margin).

• Free cash flow in H1 2025 was 37 MEUR, a decrease of 124 MEUR year-over-year; Q2 free cash flow was 84 MEUR.

• Net cash position at end of Q2 was 86 MEUR, with 450 MEUR in unused credit facilities.

• Restructuring provisions and write-downs related to the Trondheim factory closure totaled around 5 MEUR.

Outlook and guidance

• Full-year 2025 revenue is expected to be flat year-over-year in local currencies, revised from previous low single-digit growth guidance.

• EBIT margin guidance adjusted to below 16%, clarified to be closer to 16% than 15%.

• Investment level target of around 450 MEUR (excluding acquisitions) is maintained.