SigmaRoc (SRC) H1 2025 earnings summary

Executive summary

• Delivered strong first half results with underlying revenue up 13% year-over-year to £510.3m and EBITDA up 21% to £117.8m, with EBITDA margin rising 150bps to 23.1%, despite challenging market conditions and weak volumes.

• Record EPS of 4.7p, up over 50% year-over-year, and leverage reduced to 2.0x, with net zero roadmap and integration initiatives advancing.

• Synergy initiatives delivered £13m in H1, with a minimum £21m targeted for the year, and strategic investments in sustainable construction technology and digital platforms.

• Positioned for growth with 2.7bn tonnes of high-quality limestone reserves and readiness to capture structural tailwinds from European market recovery.

• Proactive volume management, cost control, and innovation investments mitigated market headwinds.

Financial highlights

• Underlying revenue reached £510.3m (+13% YoY); underlying EBITDA £117.8m (+21% YoY); EBITDA margin improved to 23.1% (+150bps YoY); EPS hit a record 4.7p, up 52% YoY.

• Free cash flow of £61.9m (+38% YoY), with free cash flow conversion at 53% (+640bps YoY).

• Net debt reduced to £498.4m (from £532.6m), leverage down to 2.0x, and ROIC increased by 100bps YoY to 5.9%.

• Finance costs decreased due to refinancing and ECB rate cuts.

• Proforma revenue declined 1% YoY due to volume reduction; proforma EBITDA up 2% YoY.

Outlook and guidance

• Full-year guidance unchanged; expectations for FY25: revenue of £1,072m and underlying EBITDA of £251m.

• H2 2025 expected to mirror H1, with no significant market improvement anticipated before year-end.

• Optimism for 2026–2028 driven by German infrastructure stimulus, European defence spending, and Ukraine reconstruction potential.

• Pricing expected to remain stable in the second half, with similar effects as the first half.