Rockwool A/S reported a record €1 billion in second-quarter revenue, up 10.2% in local currencies, as demand for non-combustible insulation products supported growth. The Danish manufacturer’s Q2 sales growth outpaced its full-year guidance range, though profitability came under pressure from rising costs.
Net profit from continuing operations fell €2 million year-over-year to €93 million, while EBIT declined 3% to €129 million. EBIT margins contracted 0.9 percentage points to 12.9%, reflecting higher energy and input costs that offset pricing adjustments. Free cash flow turned negative at €32 million, down €91 million from the prior year, as working capital needs expanded.
The insulation segment, which accounts for 83% of group revenue, grew 10.4% to €829 million, though its EBIT margin slipped 1.0 percentage point to 11.9%. The systems segment, representing 17% of sales, rose 9.3% to €171 million with a 12.6% EBIT margin, down 0.3 percentage points. Geographic performance varied, with Eastern Europe leading growth at 30.5%, while Western Europe contributed 60% of total revenue.
Chief Financial Officer Kim Junge Andersen said the company’s July 1 price increases were aimed at defending full-year EBIT margins rather than expanding them. Chief Executive Jes Munk Hansen highlighted structural demand shifts toward stone wool due to fire safety and energy efficiency regulations, particularly in North America and Europe.
Rockwool raised its full-year revenue growth guidance to 5-7% from 3-6%, citing strong order intake and pricing discipline. EBIT margin guidance was maintained at 13-14%, despite margin pressure in the first half. Capital expenditures rose 130% year-over-year to €206 million in Q2, with full-year guidance increased to €750 million.
The company hedged 75% of Q4 2026 energy costs and initiated hedging for Q1 and Q2 2027. Net debt stood at €461 million, keeping leverage at 0.6x, below its 1.0x policy ceiling. Shares fell 3.86% to $204 after the results, extending declines from a 2026 peak of $251.
