Rockwool (ROCK) Q3 2024 earnings summary

Executive summary

• Sales grew 7% year-over-year to €2,885M in the first nine months of 2024, with Q3 sales up 6% to €957M, driven by volume growth and stable pricing, including some tactical price reductions in select markets.

• EBIT for Q3 was €173M, up 18% year-over-year; YTD EBIT at €514M, up 34% year-over-year, with EBIT margin expanding by 3.5pp to 17.8% for the nine months and Q3 EBIT margin at 18.1%.

• Net profit for Q3 was €155M, up €46M; YTD net profit at €413M, up €124M.

• Strong performance in North America and Central Europe, with double-digit growth in North America and resilience in the renovation market offsetting subdued new building activity in Europe.

• Free cash flow in Q3 was €197M, up €19M; YTD free cash flow at €358M, up €73M.

Financial highlights

• Q3 EBITDA was €241M, up 10% year-over-year, with a margin of 25.2%; YTD EBITDA at €710M, up 23% (24.6% margin).

• EBIT margin for Q3 was 18.1%, up 1.9pp; YTD EBIT margin at 17.8%, up 3.5pp.

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

• Return on invested capital (ROIC) at 24.7%, up 6.3pp 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 outlook maintained: mid-single-digit sales growth, EBIT margin around 17%, and investments of approximately €375M excluding acquisitions.

• December expected to be seasonally weak due to holidays and weather, with Q4 growth expected to be modest.

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