Rockwool (ROCK) Q3 2024 earnings summary

Executive summary

• Sales grew 7% year-to-date to €2,885M, driven by volume growth and stable prices, with strong performance in North America and Central Europe.

• Q3 2024 sales reached €957M, up 6% year-over-year; Q3 EBIT was €173M, up 18% year-over-year.

• EBIT margin expanded by 3.5 percentage points to 17.8% for the first nine months; Q3 EBIT margin was 18.1%.

• Net profit for the first nine months reached €413M, up €124M year-over-year.

• Free cash flow in Q3 was €197M, with YTD free cash flow at €358M, up €73M year-over-year.

Financial highlights

• Q3 EBITDA was €241M, up 10% year-over-year, with a margin of 25.2%.

• Net working capital was 9.9% of net sales, down from 11.5% a year ago.

• Net cash position at €339M with €600M in unused credit facilities.

• Return on invested capital (ROIC) at 24.7%, up 6.3 percentage points year-over-year.

• Earnings per share for the period at €19.3, up from €13.4 year-over-year.

Outlook and guidance

• Full-year 2024 sales growth expected at mid-single-digit percent in local currencies.

• EBIT margin guidance for 2024 is around 17%; investment level around €375M excluding acquisitions.

• Q4 expected to see typical seasonal slowdown, especially in December due to holidays and weather.

• Price increases of 2-3% are planned for 2025, differentiated by market.