Wienerberger AG ((AT:WIE)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Wienerberger AG’s recent earnings call presented a balanced sentiment, reflecting both positive developments and ongoing challenges. The company reported revenue growth and successful acquisitions, yet faced difficulties in the North American market and cost inflation pressures. Overall, the sentiment was neutral, with highlights and lowlights in equilibrium.
Revenue Growth
Wienerberger achieved a 6% increase in turnover for the first half of 2025, reaching EUR 2.3 billion. This growth was primarily driven by improvements in the infrastructure and renovation sectors across various geographies, showcasing the company’s ability to capitalize on market opportunities.
Profit After Tax and EPS
The company reported an improvement in profit after tax, which rose to slightly above EUR 100 million. This was accompanied by an increase in earnings per share to approximately EUR 1, indicating a satisfactory financial performance for the period.
Successful Acquisitions
Wienerberger successfully integrated new acquisitions, including a competitor in Ireland and a solar supplier in France. These strategic moves have contributed to the company’s growth, expanding its market presence and enhancing its product offerings.
Robust EBITDA Margin
Despite a 4% year-on-year decline in operating EBITDA to EUR 383 million, Wienerberger maintained a robust margin of 16.3%. This resilience is noteworthy given the challenging macroeconomic environment the company operates in.
Positive Trends in Certain European Markets
The company experienced strong performance in European markets such as the UK, Ireland, and the Netherlands. Improvements in the pipes and roofing sectors, along with successful integration in France with Terreal, have bolstered Wienerberger’s market position.
Challenges in North America
The North American market posed significant challenges, with high mortgage rates over 7% and adverse weather conditions affecting the new residential housing segment. These factors led to a 6% decline in revenues from this region.
Cost Inflation Pressures
Wienerberger faced higher-than-expected cost inflation, particularly in energy and personnel costs. Energy costs increased by 15% year-on-year, while personnel costs rose by 5%, impacting the company’s margins.
Weakness in Germanic Markets
Germany and Austria have not yet shown recovery in the new residential housing market. This ongoing weakness has affected volumes and prices, with no immediate positive changes anticipated.
Free Cash Flow Challenges
The company reported negative free cash flow of minus EUR 51 million for the first half of the year. This was attributed to typical seasonality and working capital buildup, presenting a challenge for Wienerberger’s financial management.
Forward-Looking Guidance
Looking ahead, Wienerberger remains confident in achieving its EUR 800 million EBITDA target for the year. The company plans to focus on cost efficiencies and explore further M&A opportunities to drive growth. Despite the challenges, Wienerberger’s strategic initiatives and market presence provide a solid foundation for future performance.
In conclusion, Wienerberger AG’s earnings call highlighted a mix of achievements and hurdles. While the company has demonstrated strong revenue growth and successful acquisitions, it continues to navigate challenges in the North American market and cost inflation pressures. The overall sentiment remains neutral, with a focus on strategic growth and operational efficiencies.