ROCKWOOL Reevaluates 2025 Earnings Expectations Amid Challenges
Company announcement for ROCKWOOL A/S to Nasdaq Copenhagen.
ROCKWOOL has recently announced modifications to its earnings outlook for the year 2025, primarily due to an unplanned factory closure in Switzerland and a particularly tough market environment impacting sectors in various countries. These developments have compelled the company to revise its expected EBIT margin.
Details of the Earnings Adjustment
The EBIT margin is now projected to be between 14 and 15 percent, a decrease from previous estimations of below 16 percent. This shift reflects the challenges and unexpected disruptions the company has faced.
Main Highlights for Q3 and 2025 Year-to-Date
During the first nine months of 2025, ROCKWOOL reported revenue of 2,910 MEUR, reflecting a growth of one percent compared to the previous year. This slight increase can be attributed to acquisitions made in 2024, contributing positively to the figures.
Quarterly Performance
For Q3 2025, the revenue stood at 963 MEUR, marking a two percent growth in local currencies and one percent in reported figures. The challenges were felt in the first nine months, where the EBIT decreased by 11 percent to 457 MEUR, resulting in an EBIT margin of 15.7 percent, a decline from last year's figures. Similarly, for Q3, EBIT fell by 14 percent to 150 MEUR with a corresponding EBIT margin of 15.5 percent.
Current Market Conditions
In October 2025, ROCKWOOL encountered a production-related incident at its factory in Flums, Switzerland, involving molten rock flowing onto the factory floor, resulting in a production halt. The factory is undergoing repairs as the company works to address the incident and investigate the root causes. During this downtime, products destined for the Swiss market are being sourced from alternative ROCKWOOL facilities. Financial repercussions from repair necessities and import expenses may negatively influence earnings in Q4 2025, and negotiations with insurance providers are in progress, but resolutions are not anticipated until the start of 2026.
The global markets continue to exhibit volatility, compounded by trade policy uncertainties and geopolitical tensions. Notably, the UK insulation sector has faced multiple unexpected hurdles in Q3 2025, including the cancellation or postponement of substantial flat roof projects, which has temporarily hampered sales and earnings. Fortunately, by early Q4, UK sales have normalized. However, the construction market in Canada remains challenged by rising inflation and trade tensions, significantly affecting demand. A similar downturn is being observed in Russia, with pricing declines and heightened inflation adversely impacting the Group's earnings.
Future Expectations
ROCKWOOL anticipates that the EBIT margin for the entirety of 2025 will be situated between 14 and 15 percent, correcting earlier predictions of an EBIT margin below 16 percent. Despite these conditions, the company expects revenue to match last year's figures, while maintaining a commitment to approximately 450 MEUR in investments, excluding acquisitions.
ROCKWOOL Group is scheduled to provide its comprehensive Q3 results along with the first nine months of 2025 on November 26.
For additional inquiries, interested parties can contact:
Kim Junge Andersen
Chief Financial Officer
ROCKWOOL A/S
+45 46 56 03 00
Frequently Asked Questions
What caused ROCKWOOL to adjust its earnings outlook for 2025?
The adjustment was primarily due to an unplanned closure of their factory in Switzerland and challenging market conditions.
What is the revised EBIT margin forecast for ROCKWOOL?
The EBIT margin is now expected to be between 14 and 15 percent, lowered from below 16 percent.
How has the market environment affected ROCKWOOL's operations?
ROCKWOOL faces volatility and uncertainty in global markets, impacting their sales, particularly in the UK, Canada, and Russia.
When will ROCKWOOL release its Q3 results?
ROCKWOOL is set to publish its full Q3 results and the first nine months of 2025 on November 26.
Who can be contacted for more information on ROCKWOOL's financial updates?
Kim Junge Andersen, Chief Financial Officer, can be reached for further information.
