Rockwool’s shares fell more than 6% on Wednesday after the Danish mineral wool manufacturer raised its long-term revenue growth outlook but left its EBIT margin target unchanged, disappointing investors who had expected a margin upgrade.
The company now expects revenue to grow 5%-7% annually through 2026, up from its prior guidance of 3%-6%, citing volume growth and market share gains. Capital expenditure plans were also increased to around €750 million from roughly €700 million previously.
However, Rockwool maintained its EBIT margin guidance of 13%-14%, a level that fell short of market expectations. JPMorgan analysts noted that the absence of a margin upgrade was a disappointment, given investor anticipation of an improvement.
Second-quarter results showed revenue rose 10% in local currencies to a record high, driven by higher volumes and market share gains. EBIT increased 3% to €129 million, though the EBIT margin edged down to 12.9% from 13.1% in the same period last year.
The stock, which had been trading at 210.00 DKK, fell 5.90%-5.99% during the session.
