Rockwool (ROCK) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue increased by 1.1% in local currencies, reaching 3,877 MEUR, with acquisitions contributing 1.2% to growth; excluding Russia, revenue grew 2.7%.

• EBIT before Russian value adjustment was 570 MEUR, down 16% year-over-year; EBIT margin before Russian value adjustment was 14.7%, down 2.8 percentage points.

• Russian authorities took control of four factories in January 2025, leading to a EUR 392 million write-down of net assets and liabilities to zero and a significant negative impact on net profit.

• Major one-offs included two factory closures and the Flumroc incident, impacting EBIT margin by 0.6 percentage points.

• Q4 2025 revenue was 967 MEUR, up 0.8% in local currencies; EBIT before Russia adjustment was 113 MEUR, down 30%.

Financial highlights

• Group revenue excluding Russia increased 2% in 2025, driven by North America, South Europe, and OEM business.

• EBIT margin before Russia value adjustment was 14.7% for FY 2025; Q4 EBIT margin was 11.8%, down 4.9 percentage points.

• Free cash flow for FY 2025 was 135 MEUR, down 229 MEUR year-over-year, due to lower earnings, less favorable working capital, and higher investments.

• Net debt at year-end was EUR 168 million, mainly due to EUR 243 million cash loss in Russia.

• Price increases accounted for about half of the revenue growth.

Outlook and guidance

• 2026 revenue expected to grow 2%-4% in local currencies, excluding Russia.

• EBIT margin guidance for 2026 is 13%-14%, reflecting higher spending on capacity, electrification, and sales/marketing.

• Major investments in 2026 will focus on capacity expansion in India, Romania, and the US, with total CapEx expected around EUR 650 million.

• No material one-off items included in 2026 EBIT margin guidance.

• Investments planned around 650 MEUR, excluding acquisitions.