Rockwool International A/S reported second-quarter revenue of $1.0 billion, exceeding analyst expectations, but posted earnings per share below forecasts as shares fell 3.9%.
The Danish insulation manufacturer posted record quarterly sales of just over $1.0 billion, beating the consensus estimate of $944.45 million by 5.88%. Earnings per share came in at $0.40, missing the analyst projection of $0.4698 by 14.86%. The stock declined 3.86% to 210.00 Danish kroner ($204) from the prior close of $212, extending losses from the session.
EBIT margins for the quarter reached 12.9%, up from 12.6% in the same period last year, while EBIT rose 3% year-over-year and EBITDA increased 6%. Free cash flow turned negative at EUR 32 million due to capacity expansion and decarbonization investments, though operating cash flow improved by EUR 31 million compared with Q2 2025.
Capital expenditures totaled around EUR 200 million in the quarter, with full-year 2026 guidance raised to approximately EUR 750 million from EUR 700 million previously. Net debt stood at EUR 461 million at the end of June, with a leverage ratio of 0.6x, below the company’s internal policy threshold of 1.0x.
Revenue growth in local currencies accelerated 10% in Q2, driven primarily by volume, while pricing contributed 1%-2% of growth. The insulation segment reported revenue growth of 10% with an EBIT margin just below 12%, while the system segment grew 9% with an EBIT margin of 12.6%, including a EUR 6 million claim settlement gain.
Guidance for full-year 2026 was upgraded to 5%-7% local currency revenue growth, with H2 growth projected at around 6% on a 1%-2% volume increase and the remainder from pricing. EBIT margin guidance remained unchanged at 13%-14%.
Regional performance showed double-digit growth in the U.S. and Eastern Europe, while Asia expanded 17% excluding flat performance in China. Western Europe improved, offset by weakness in the U.K. and Switzerland. Canada continued to decline amid a contracting economy.
CEO Jes Munk Hansen highlighted volume-driven growth and a shift toward non-combustible stone wool insulation. CFO Kim Junge Andersen noted that price increases implemented in July were aimed at defending full-year EBIT margins despite lower-margin imports used to bridge capacity gaps ahead of new facility openings.
The company also reported a 25% reduction in scope 1 and 2 emission intensity compared with 2019, though absolute emissions rose 1% due to higher production. Safety metrics improved, with a lost time incident frequency rate of 1.6, a near 40% improvement from H1 2025.
