Wienerberger AG ((AT:WIE)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Wienerberger’s latest earnings call painted a cautiously confident picture as management framed the weak first quarter as largely weather-driven and in line with expectations. While revenues and EBITDA fell year on year and North America remained under heavy pressure, executives stressed a clear volume rebound from March onward, strong energy hedging, and reiterated full-year earnings targets.
Momentum Returns as Volumes Rebound in Spring
Volumes recovered strongly after the slow start to the year, with group volumes up mid single digits in March and Europe posting double-digit growth. Management said this rebound continued into April and early May, noting that March volumes returned to prior-year levels after the weather-related weakness in January and February.
Italcer and NEWS Group Expand Strategic Footprint
Wienerberger closed the Italcer acquisition at the end of April, marking a move into high-end tiles and facades with a multi-brand platform across Europe and North America. The company also acquired NEWS Group, a niche water-management and piping specialist with around EUR 20 million in annual turnover, reinforcing its infrastructure solutions portfolio.
Guidance Intact, Italcer EBITDA Already Baked In
Despite the soft first quarter, management reiterated full-year operating EBITDA guidance of EUR 810 million and described the period as transitional. Around EUR 50 million of operating EBITDA is expected from acquisitions this year, with Italcer’s contribution already included in the group guidance rather than treated as upside.
Strong Energy Hedging Cushions Cost Volatility
The group has hedged or contracted roughly 80% of its energy needs, including natural gas, which has eased from prior peaks. Q1 cost inflation was contained at about 2%, driven mainly by labor and energy, and management highlighted that the hedging position significantly limits exposure to sudden spot price spikes.
Fit For Growth Program Underpins Margin Discipline
Wienerberger continues to lean on its “Fit For Growth” program and strict margin management to protect profitability. The company reaffirmed a EUR 30 million cost-savings target for 2026, focusing on production optimization, site consolidation, and the sale of noncore properties to boost efficiency and earnings quality.
CapEx Controlled as Balance Sheet Remains in Focus
Management set full-year CapEx at about EUR 160 million for maintenance, roughly EUR 20 million for health and safety, and around EUR 100 million for growth and ESG projects. With Italcer costing about EUR 160 million for a 50% plus one share stake and no capital increase planned, the group underlined its commitment to balance-sheet discipline and a leverage target of roughly 2.2x.
Property Disposals to Support Cash and Deleveraging
Noncore property sales are expected to generate around EUR 20–30 million of proceeds during the year. These disposals are already embedded in the company’s guidance and are aimed at improving free cash flow and helping reduce leverage in the second half after acquisition-related outflows.
Q1 Revenue and EBITDA Slide in Transitional Quarter
Group revenues fell 7% year on year in the first quarter, with organic revenues down roughly 6%, and operating EBITDA dropped to EUR 97 million from a strong prior-year comparative. Management characterized the period as a transitional quarter, pointing to weather disruption and soft construction markets, but argued that the subsequent volume recovery supports the full-year outlook.
North America Hit Hard by Housing Slowdown
North America was the weakest region, with revenues down 21% and operating EBITDA down 37% compared with last year’s first quarter. Management cited subdued new residential construction, multifamily activity at multi-year lows, and persistently high mortgage rates, with Canada described as particularly challenging in the near term.
Middle East Conflict Drives Inflation and Raw Material Risks
Executives warned that rising geopolitical tensions are feeding through to higher plastics and resin prices, which are key inputs for piping products, along with broader material and logistics costs. The raw-material softness seen earlier has reversed, and higher cost inflation is expected from the second quarter onward, although visibility on the full impact remains limited.
Pricing Actions Face Lag and Regional Constraints
The company has announced double-digit price increases in piping and mid single-digit increases in ceramics, with even higher adjustments in some Eastern European markets. However, management noted that these moves had little visible impact in the first quarter due to timing, and it remains uncertain how quickly and fully higher costs can be passed through, especially in the more constrained North American market.
Competitive Pressure Weighs on Eastern European Pricing
Pricing remains under pressure in parts of Eastern Europe, where cost inflation has run above the group average and competition is intense. Markets such as the Czech Republic were cited as examples where aggressive competitors limit immediate margin recovery, forcing Wienerberger to balance price discipline against volume protection.
Acquisition Outflows Temporarily Lift Leverage
The Italcer transaction will trigger a significant cash outflow around mid-year and will temporarily push net debt higher at the half-year mark. Management expects leverage to decline again in the second half as underlying cash generation improves and proceeds from noncore property sales come through.
Guidance Reaffirmed Amid Expectation of Stronger Second Half
Looking ahead, Wienerberger reaffirmed its target of around EUR 810 million in operating EBITDA for 2026 and year-end leverage of roughly 2.2x, backed by cost savings, acquisitions, and property disposals. Management expects residential construction and infrastructure/renovation markets to be broadly flat this year, with a stronger second half than first, and plans to use pricing and hedging to offset higher inflation.
Wienerberger’s call suggests a company navigating a tough first quarter with measured confidence, leaning on cost control, strategic acquisitions, and hedging to protect its full-year targets. Investors will now watch whether the spring volume recovery, pricing actions, and planned deleveraging can outweigh North American weakness and rising input costs as the year unfolds.