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1. Company Snapshot

1.a. Company Description

Wienerberger AG produces and sells bricks, roof tiles, concrete pavers, and pipe systems in Europe.It operates through Wienerberger Building Solutions, Wienerberger Piping Solutions, and North America segments.The company offers clay blocks for exterior walls, load and non-load-bearing interior walls, and partition walls, as well as for infill and separating walls under the Porotherm and POROTON brand names; facing bricks for façades under the Terca brand, and ceramic façade tiles under the Argeton brand for hospitals, schools, factories, and offices; clay roof tiles under the Koramic, Sandtoft, and Tondach brands; vitrified clay pipes and fittings, shafts, and accessories for sewage systems; and concrete and clay pavements for various applications that include pedestrian zones, public spaces in train stations or airports, and private terraces or gardens under the Semmelrock brand name, as well as paving bricks and terrace tiles under the Penter brand.


It also provides plastic pipes, pipe systems, and pipe fittings for sewage disposal and rainwater drainage; sanitation and heating technology; and supplying energy, gas, and drinking water under the Pipelife brand.Wienerberger AG was founded in 1819 and is headquartered in Vienna, Austria.

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1.b. Last Insights on WIE

Wienerberger AG faces challenges due to cost pressures and market headwinds. Despite steady revenue growth and strategic expansions, the company's recent performance has been impacted. The Q3 2025 earnings call highlights the company's efforts to navigate these challenges. With no recent share buyback announcements, investors focus on the company's ability to manage costs and drive growth. According to recent reports, Wienerberger's long-term resilience remains intact. (Source: Evaluating Valuation Following Recent Share Price Weakness)

1.c. Company Highlights

2. Wienerberger's Q1 to Q3 2025 Results: Resilient Performance Amidst Challenging Market

Wienerberger's Q1 to Q3 2025 results show a revenue increase of 4% to EUR 3.5 billion, driven by the Terreal acquisition and strong roofing performance, despite a weak new build market. The operating EBITDA margin stood at 16.6%, with an operating EBITDA of EUR 584 million. Earnings per share (EPS) came in at EUR 0.4392, in line with estimates. The company's revenue growth was driven by scope, with a strong roofing performance, while organically, revenue grew by 1%. The Western Europe segment saw an 8% revenue increase, driven by strong renovation activities.

Publication Date: Nov -16

📋 Highlights
  • Operating EBITDA Margin Expansion:: EBITDA reached EUR 584 million (16.6% margin) despite weak new build markets, driven by higher utilization and cost discipline.
  • Revenue Growth from Acquisitions:: Revenue rose 4% to EUR 3.5 billion, with 8% growth in Western Europe (renovation-driven) and 1% organic growth globally.
  • Cost Inflation Challenges:: Operating EBITDA declined 4% organically due to 4-4.5% cost inflation, particularly in energy (10% of costs) and labor (30% of costs).
  • Fit for Growth Savings:: New efficiency program targets EUR 15-20 million annual savings, alongside existing programs, to offset inflation and improve margins.
  • Midterm EBITDA Target:: EUR 1.2 billion operating EBITDA goal remains, contingent on interest rate cuts, European social housing plans, and market recovery in Ukraine/U.S.

Segmental Performance

The company's segmental performance was mixed, with Western Europe being a standout, driven by strong renovation activities, with Belgium, Netherlands, and France as top performers. In Eastern Europe, revenue grew by 2%, mainly supported by higher clay block volumes, while operating EBITDA was down 7% due to high cost inflation, especially on energy. In North America, external revenues decreased by 8% due to weaker brick demand, but operating EBITDA remained healthy at 19%.

Strategic Progress

Wienerberger's strategy to migrate from a New Residential Housing business to a more resilient business based on infrastructure and renovation has shown positive results. Acquisitions, such as Terreal, have been value-enhancing, with synergies coming in better than expected. The company has focused on water management, acquiring a framing business for solar panels, and consolidating the market in Ireland.

Outlook and Valuation

The company expects a strong increase in profit after tax and earnings per share due to the normalization of its business after the sale of the Russian business last year. Wienerberger's focus areas for growth include infrastructure, renovation, and the expansion of its piping operations and water management business. With a P/E Ratio of 15.4 and an EV/EBITDA of 6.69, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 3.5%. The company's "Fit for Growth" program is expected to bring EUR 15 million to EUR 20 million in efficiency gains.

Cost Management and Guidance

The company's cost structure is dominated by personnel expenses (around 30%) and energy costs (around 10%). Cost inflation is mainly driven by personnel expenses and energy costs. For 2026, cost inflation is expected to be lower, but it's too early to provide a specific number. The company has fixed around 50-60% of its energy costs for 2026. Regarding Q4 guidance, EBITDA could be up year-on-year, driven by cost management and the Fit for Growth program.

3. NewsRoom

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Wienerberger AG (WBRBF) Q3 2025 Earnings Call Highlights: Navigating Market Challenges with ...

Nov -19

Source:

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Wienerberger (WBAG:WIE): Evaluating Valuation Following Recent Share Price Weakness

Oct -15

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Bricks and Blocks Industry Outlook Report 2025-2030: Key Opportunities Lie in Emerging Markets Like India and Africa, Eco-friendly Product Innovations Using Recycled Materials

Oct -13

Source:

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

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Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

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Is Vaisala (HLSE:VAIAS) Undervalued? A Fresh Look at Its Current Valuation

Sep -09

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Has Evotec’s 29.5% Price Drop Created a New Opportunity for 2025?

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.28%)

6. Segments

Europe West

Expected Growth: 8.5%

Wienerberger AG's 8.5% growth in Europe West is driven by increasing demand for sustainable building solutions, government initiatives promoting energy-efficient construction, and rising infrastructure investments in countries like Germany and the Netherlands. Additionally, the company's strategic expansion into new markets and product innovations have contributed to its growth momentum.

Europe East

Expected Growth: 7.5%

Wienerberger AG's Europe East segment growth of 7.5% is driven by increasing infrastructure investments, rising residential construction, and growing demand for sustainable building solutions. Additionally, the region's economic growth, urbanization, and government initiatives to develop affordable housing also contribute to the segment's growth.

North America

Expected Growth: 9.5%

Wienerberger AG's 9.5% growth in North America is driven by increasing demand for sustainable and energy-efficient building solutions, fueled by government incentives and rising environmental awareness. Additionally, the region's growing residential construction market, driven by low interest rates and urbanization, contributes to the company's strong performance.

Group Eliminations

Expected Growth: 0.0%

Wienerberger AG's Group Eliminations segment exhibits 0.0% growth, driven by stagnant demand in the European construction market, offsetting effects of cost savings initiatives and stable raw material prices. The lack of growth is also attributed to the company's focus on consolidating its operations and optimizing its production capacity, rather than pursuing aggressive expansion strategies.

7. Detailed Products

Clay Blocks

High-quality, sustainable, and durable building materials for walls, partitions, and facades

Facing Bricks

Aesthetic and durable exterior wall cladding solutions for buildings

Roof Tiles

Waterproof and durable roofing solutions for pitched roofs

Pavers

Durable and versatile outdoor paving solutions for pedestrian and vehicular traffic

Porotherm

Innovative, sustainable, and energy-efficient wall systems for building envelopes

Semmelrock

High-quality, durable, and sustainable concrete pavers and slabs for outdoor spaces

Koramic

High-quality, durable, and sustainable roofing solutions for flat roofs

8. Wienerberger AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Wienerberger AG faces moderate threat from substitutes, as customers have limited alternatives to its clay building materials and pipes. However, the company's focus on sustainability and innovative products helps to mitigate this threat.

Bargaining Power Of Customers

Wienerberger AG's customers have limited bargaining power due to the company's strong market position and diversified customer base. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Wienerberger AG's suppliers have moderate bargaining power due to the company's dependence on raw materials such as clay and energy. However, the company's long-term contracts and diversified supplier base help to mitigate this risk.

Threat Of New Entrants

Wienerberger AG faces low threat from new entrants due to the high barriers to entry in the clay building materials and pipes industry. The company's established brand, extensive distribution network, and significant capital requirements for new entrants make it difficult for new companies to enter the market.

Intensity Of Rivalry

Wienerberger AG operates in a highly competitive industry, with several established players competing for market share. The company's focus on innovation, quality, and customer service helps to differentiate it from its competitors, but the rivalry remains intense.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.07%
Debt Cost 5.68%
Equity Weight 63.93%
Equity Cost 11.17%
WACC 9.19%
Leverage 56.43%

11. Quality Control: Wienerberger AG passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Titan Cement

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Value: 7.2

Growth: 8.2

Quality: 6.3

Yield: 8.1

Momentum: 5.5

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Wienerberger

A-Score: 5.2/10

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Yield: 5.6

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Imerys

A-Score: 4.4/10

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Yield: 8.8

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A-Score: 4.4/10

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Growth: 4.0

Quality: 7.2

Yield: 7.5

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.42$

Current Price

29.42$

Potential

-0.00%

Expected Cash-Flows