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1. Company Snapshot

1.a. Company Description

Rockwool A/S manufactures and sells stone wool insulations in Western Europe, Eastern Europe, North America, Asia, and internationally.The company operates through two segments, Insulation and Systems segments.It offers fire-safe stone wool insulation under the ROCKWOOL brand name; acoustic solutions for ceilings and walls under the Rockfon brand name; board materials that are applied in ventilated constructions for facade cladding, roof detailing, soffits, and fascia under the Rockpanel brand name; stone wool growing media and technology solutions for the horticulture industry under the Grodan brand name; and stone wool-based products used in automotive, urban acoustics, residential prefab construction, OEM, and urban climate adaptation applications under the Lapinus brand name.


In addition, its products are used in roof, floor, ceiling, internal and external wall, HVAC, acoustic, industrial, marine and offshore, basement, chimney, shed, garage, and OEM insulation, as well as passive fire protection, and other applications.Rockwool A/S was founded in 1909 and is based in Hedehusene, Denmark.

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1.b. Last Insights on ROCK

ROCKWOOL A/S faces challenges, as reflected in its revised outlook for 2025. Revenue is expected to remain flat in local currencies, down from a low single-digit percent growth projection. EBIT margin is anticipated to be below 16%, indicating a tougher market environment. Despite this, the company continues to invest for long-term value creation. ROCKWOOL's share buy-back program, initiated in February 2025, aims to repurchase up to 150 MEUR of shares, potentially benefiting shareholders. Recent executive transactions and related party share deals have also been disclosed.

1.c. Company Highlights

2. ROCKWOOL Delivers Resilient Q1 Performance Amid Macro Uncertainty

ROCKWOOL reported a solid start to 2025, with Q1 revenue reaching EUR959 million, a 4% year-over-year increase, driven by 2% volume growth and 2% from acquisitions. EBIT came in at EUR154 million, maintaining a 16% margin, supported by stable pricing and input costs. The Insulation segment grew 5%, led by strong performance in North America, while the Systems division saw a revenue decline due to lower horticulture sales in Grodan. Profitability remained robust, with EBITDA increasing to EUR223 million. The company invested EUR93 million in capacity expansion, including new factories in Romania, the Netherlands, and the US, resulting in a free cash flow of -EUR47 million and a net cash position of EUR231 million. Despite macroeconomic uncertainty, ROCKWOOL maintained its full-year outlook for low single-digit revenue growth and a 16% EBIT margin. Actual EPS came in at 4.03, aligning with estimates of 4.03.

Publication Date: May -20

📋 Highlights
  • Revenue Growth: Q1 revenue reached EUR959 million, a 4% year-over-year increase, driven by 2% volume growth and 2% from acquisitions.
  • Profitability: EBIT remained stable at EUR154 million, maintaining a 16% margin, supported by stable pricing and input costs.
  • Segment Performance: Insulation segment grew 5%, while Systems revenue declined due to lower horticulture sales in Grodan.
  • North America Growth: North America delivered 15% revenue growth, despite some project delays due to macroeconomic uncertainty.
  • Capacity Expansion: ROCKWOOL invested EUR93 million in capacity expansion, with free cash flow at -EUR47 million and a net cash position of EUR231 million.

Regional Performance and Market Expansion

Western Europe showed mixed performance, with growth in Germany, Switzerland, Spain, and the UK, but pricing pressure in France. North America delivered 15% growth, driven by strong demand for fire safety solutions and expansion into new customers and channels. Management highlighted plans to improve Systems division profitability through supply chain and pricing initiatives. The US market, particularly the investment in Washington state, was emphasized as a long-term growth opportunity, given strong interest in insulation and other products. Volume growth in Q2 is challenging due to high prior-year comparisons, but the company is optimizing production and shifting volumes to high-value areas.

Profitability and Cash Flow Management

ROCKWOOL's profitability remained strong, with EBITDA increasing to EUR223 million. The company invested EUR93 million in capacity expansion, including new factories in Romania, the Netherlands, and the US, with free cash flow at -EUR47 million and a net cash position of EUR231 million. Despite macroeconomic uncertainty, ROCKWOOL maintained its full-year outlook for low single-digit revenue growth and a 16% EBIT margin.

Valuation and Outlook

Current valuation metrics indicate a P/E Ratio of 16.05, P/B Ratio of 2.86, and EV/EBITDA of 8.74, suggesting the market is pricing in cautious optimism about ROCKWOOL's growth prospects. Analysts estimate next year's revenue growth at 4.6%. Management's focus on optimizing production and expanding into high-value markets, combined with strong demand in North America, positions ROCKWOOL well to navigate macroeconomic uncertainty and deliver on its growth targets.

3. NewsRoom

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ROCKWOOL A/S – transactions in connection with share buy-back programme

Dec -03

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ROCKWOOL Group launches an inspiring new brand campaign under the tagline, “If it’s worth building”

Dec -01

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Is Rockwool Fairly Priced After 3.6% Share Price Rise and Sustainability Push?

Nov -29

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Rockwool AS (RKWBF) Q3 2025 Earnings Call Highlights: Navigating Growth and Challenges

Nov -28

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Difficult market conditions impact Q3 results

Nov -26

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ROCKWOOL A/S – transactions in connection with share buy-back programme

Nov -26

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ROCKWOOL A/S – transactions in connection with share buy-back programme

Nov -19

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ROCKWOOL A/S – transactions in connection with share buy-back programme

Nov -12

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.89%)

6. Segments

Insulation

Expected Growth: 1.8%

Rockwool A/S's 1.8% growth is driven by increasing demand for energy-efficient buildings, stringent government regulations on energy consumption, and rising adoption of sustainable construction materials. Additionally, the company's expanding product portfolio and strategic acquisitions have contributed to its growth momentum.

System

Expected Growth: 2.2%

Rockwool A/S's 2.2% growth is driven by increasing demand for energy-efficient buildings, rising adoption of sustainable insulation materials, and growing construction activities in Europe and North America. Additionally, the company's strategic expansion into emerging markets and continuous product innovation also contribute to its growth momentum.

7. Detailed Products

Stone Wool Insulation

Rockwool's stone wool insulation is a sustainable and energy-efficient solution for buildings, providing thermal insulation, fire safety, and acoustic comfort.

ROXUL Safe'n'Sound

A high-density, non-combustible stone wool insulation for interior walls and ceilings, providing acoustic comfort and fire safety.

ROXUL TOPROCK

A high-temperature, stone wool-based insulation for industrial applications, providing thermal insulation and fire protection.

Rockfon Acoustic Ceilings

A range of acoustic ceiling solutions, providing optimal sound absorption, durability, and design flexibility.

Grodan Horticultural Substrates

A range of stone wool-based growing media for horticulture, providing optimal water and nutrient management.

8. Rockwool A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

Rockwool A/S has a moderate threat of substitutes due to the availability of alternative insulation materials, such as fiberglass and cellulose. However, Rockwool's products have a strong reputation for quality and performance, which helps to mitigate this threat.

Bargaining Power Of Customers

Rockwool A/S has a large and diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often specified by architects and builders, which further reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Rockwool A/S has a moderate bargaining power of suppliers due to the availability of alternative suppliers of raw materials. However, the company's long-term relationships with suppliers and its large scale of operations help to mitigate this threat.

Threat Of New Entrants

Rockwool A/S has a low threat of new entrants due to the high barriers to entry in the insulation industry, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

Rockwool A/S operates in a highly competitive industry, with several established players competing for market share. The company's strong brand reputation and product offerings help to differentiate it from competitors, but the intensity of rivalry remains high.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.94%
Debt Cost 10.36%
Equity Weight 96.06%
Equity Cost 10.36%
WACC 10.36%
Leverage 4.10%

11. Quality Control: Rockwool A/S passed 8 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

Stock-Card
Logista

A-Score: 7.4/10

Value: 7.0

Growth: 5.9

Quality: 5.8

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Strabag

A-Score: 6.6/10

Value: 8.1

Growth: 4.7

Quality: 6.2

Yield: 8.1

Momentum: 10.0

Volatility: 2.7

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Wallenius Wilhelmsen

A-Score: 5.8/10

Value: 9.2

Growth: 8.2

Quality: 7.9

Yield: 6.2

Momentum: 1.0

Volatility: 2.3

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BELIMO

A-Score: 5.6/10

Value: 0.0

Growth: 5.4

Quality: 8.2

Yield: 5.6

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Rockwool

A-Score: 4.9/10

Value: 5.6

Growth: 7.0

Quality: 7.2

Yield: 5.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Travis Perkins

A-Score: 3.9/10

Value: 8.2

Growth: 1.3

Quality: 2.6

Yield: 5.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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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

218.45$

Current Price

218.45$

Potential

-0.00%

Expected Cash-Flows