Rockwool (ROCK) Q4 2025 earnings summary

Executive summary

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

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

• Russian authorities took control of four factories, resulting in a EUR 392 million write-down of Russian net assets to zero and net profit including Russia at 28 MEUR.

• Major one-offs included two factory closures and the Flumroc incident, impacting margins.

• 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 Q4, driven by North America, South Europe, and OEM business.

• Q4 EBIT margin was 11.8% (excluding Russian adjustment), negatively impacted by Flumroc (EUR 4 million) and China factory closure (EUR 15 million).

• Free cash flow for FY 2025 was 135 MEUR, down 229 MEUR year-over-year; Q4 free cash flow was -7 MEUR, down 13 MEUR.

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

• EBITDA for Q4 2025 was 199 MEUR, down 14% year-over-year; EBITDA margin was 20.5%.

Outlook and guidance

• 2026 revenue expected to grow 2%-4% in local currencies, with EBIT margin guided between 13%-14%.

• Major investments planned for capacity expansion in India, Romania, and the US, with total 2026 investments around EUR 650 million (excluding acquisitions).

• Price increases expected to be in line with inflation, supporting ongoing investments.