Wienerberger (WIE) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 increased by 3% year-over-year to €3,392 million, but profitability declined due to lower capacity utilization, standstill costs, and market headwinds.

• Successfully integrated Terreal, the largest acquisition in company history, ahead of schedule, with ongoing bolt-on M&A in Northern and Central Eastern Europe expanding the water management business.

• Significant modernization and decarbonization of plant network, including a world-first industrial kiln in Austria and new facilities in Romania.

• Navigated a challenging year marked by political instability, low residential construction activity, and volatile markets, maintaining strong cost discipline and cash flow.

• Stable demand in renovation and infrastructure markets supported results, while new residential housing showed sequential improvement in UK/Ireland and Eastern Europe.

Financial highlights

• Q3 2024 revenue increased 9% year-over-year to €1,179 million; first nine months revenue was €3,392 million, up 3% year-over-year.

• Operating EBITDA for Q1–Q3 2024 declined 9% to €602 million, with margin down to 17.7% from 20.2%; Q3 EBITDA margin at 17%.

• Net result for Q3 2024 was €47 million, down 47% from Q3 2023; profit after tax for nine months fell 84–85% to €46–49 million.

• Free cash flow improved to €174.2 million from negative €8.5 million in the prior year, driven by inventory and working capital management.

• Net debt increased 55% year-over-year to €1,880 million, but is expected to decrease to ~€1.7 billion by year-end 2024.

Outlook and guidance

• Operating EBITDA for 2024 expected in the range of €750–770 million, with potential weather-related variation.

• For 2025, anticipate EBITDA well above €800 million, supported by operational leverage, cost savings, and higher Terreal contribution (expected above €100 million).

• Pricing expected to increase 2–3% in 2025 to offset cost inflation of 3–3.5%.

• Net debt expected to decrease to ~€1.7 billion by year-end 2024, despite M&A investments.

• No further significant inventory reductions planned; working capital at targeted levels.