This article first appeared on GuruFocus.
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Revenue (First 9 Months): Increased 1% in local currencies; excluding acquisitions, group revenue decreased slightly.
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Revenue (Q3): Increased 2% in local currencies; excluding acquisitions, group revenue growth was flat.
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EBIT Margin (First 9 Months): Declined 2.1 percentage points.
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EBIT Margin (Q3): Down 2.9 percentage points due to unfavorable country and product mix, reduced efficiency, and decline in operating cost leverage.
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Insulation Segment Revenue (Q3): Increased 3% in local currency; excluding Russia, increased 5%.
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Systems Segment Revenue (Q3): Decreased 1% due to challenges in the rod business.
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Net Cash Position: 100 million, with 230 million restricted cash in Russia.
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Free Cash Flow: Decreased by 92 million compared to the same quarter last year.
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Investment Activities: Major investments in electrification of production lines in the Netherlands and France, capacity expansion in Romania, and a large factory project in the United States.
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Full Year Revenue Outlook: Expected to be at the same level as last year in local currencies.
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EBIT Margin Forecast: Between 14% and 15% for the full year.
Release Date: November 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Revenue in the first nine months increased by 1% in local currencies, with acquisitions contributing an additional 2% increase.
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The insulation segment saw a 3% revenue increase in local currency, with strong sales performance in Poland, Romania, Spain, Italy, and France.
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Western Europe experienced double-digit growth in Italy and Spain, and France returned to growth after several quarters of decline.
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The US market is back to growth levels, with capacity available in Canadian factories to support US demand.
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Rockwool AS (RKWBF) is optimistic about long-term demand for its products, driven by energy efficiency agendas in Europe and expansion in the United States.
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The EBIT margin declined by 2.1 percentage points due to unfavorable country and product mix, reduced efficiency in factories, and a decline in operating cost leverage.
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Q3 sales and earnings were negatively affected by a sales decrease in the UK, where large flat roof projects were canceled or postponed.
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The Canadian market is facing challenges due to trade tensions, with no quick recovery expected.
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Russia continues to experience a double-digit revenue decrease, impacting overall group performance.
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Free cash flow decreased by 92 million compared to the same quarter last year, mainly due to lower earnings, less favorable working capital development, and higher investments.
