Rockwool (ROCK) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 increased 1% year-over-year to €2,910 million, with Q3 revenue up 2% in local currencies and 1% in reported figures, aided by 2024 acquisitions.

• Q3 2025 EBIT was €150 million, down 14% year-over-year, with an EBIT margin of 15.5%, a decrease of 2.6 percentage points.

• Profitability declined due to unfavorable country mix, lower operational efficiency, and reduced cost leverage, with net profit for Q3 at €122 million, down €33 million year-over-year.

• Challenging market conditions, especially in the UK and Canada, led to postponed projects and lower sales, while Eastern and Southern Europe and the US showed growth.

• Free cash flow in Q3 was €105 million, down €92 million year-over-year, mainly due to lower earnings, higher investments, and increased inventory.

Financial highlights

• EBITDA for Q3 was €215 million (22.3% margin), down 11%, with a 2.9 percentage point lower margin year-over-year.

• EBIT for the first nine months was €457 million (15.7% margin), down 11% year-over-year.

• Net profit for the first nine months was €360 million, €53 million lower than last year.

• Free cash flow for the first nine months was €142 million, down €216 million year-over-year.

• Equity ratio at the end of Q3 was 75.8%-76%, down 3.4 percentage points year-over-year.

Outlook and guidance

• Full-year 2025 revenue is expected to be flat in local currencies, with EBIT margin guidance at 14%-15%.

• Investment guidance maintained at around €450 million, excluding acquisitions.

• Q4 earnings expected to be negatively impacted by a production incident in Switzerland and continued market slowdowns in Canada, Russia, and the UK.

• Price increases of 1%-3% are planned for 2026, with input costs expected to remain flat.