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Wienerberger (WBRBY)
OTHER OTC:WBRBY
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Wienerberger
(OTC:WBRBY)
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Rating:67Neutral
Price Target:
$8.00
▲(11.11% Upside)
Action:ReiteratedDate:02/24/26
Score reflects resilient cash generation and improving balance-sheet positioning despite a clear profitability and revenue downturn versus prior-cycle peaks. Management’s disciplined execution and 2026 EBITDA guidance support the outlook, while valuation (P/E ~21.3 with a ~1.58% yield) and near-term macro/energy and leverage headwinds keep the score in the mid range.
Positive Factors
Strong cash generation
Consistent, substantial operating cash flow and an improved free cash flow profile provide durable financial flexibility. Strong FCF supports debt reduction, maintenance/growth CapEx and shareholder returns across cycles, lowering refinancing risk and funding strategic priorities without relying on volatile earnings.
Improving leverage and working capital
Measured deleveraging and working-capital improvement strengthen the balance sheet, increasing headroom for investments or M&A. Lower net leverage improves resilience to downturns and reduces interest burden, enabling the company to pursue strategic initiatives while maintaining conservative financial policy.
Higher-margin mix and cost discipline
A structural shift toward innovative, renovation and higher-margin products diversifies revenue and reduces exposure to volatile new-build cycles. Coupled with delivered overhead savings and Fit for Growth efficiencies, this mix supports more stable margins and improved returns over the medium term.
Negative Factors
Cyclical margin and revenue downturn
Material deterioration from prior-cycle peak margins indicates earnings are highly cyclical and currently depressed. Lower profitability limits reinvestment capacity and weakens returns on capital, making the business more sensitive to prolonged market slumps and reducing margin of safety for capital deployment.
Persistently weak end markets
Structural weakness in core markets (new build, renovation, infrastructure) depresses volumes and utilization across plants. Prolonged low activity undermines pricing power and capacity absorption, pressuring margins and returns even if the company executes operational improvements successfully.
Acquisition raises near-term leverage
The Italcer deal temporarily increases leverage and interest exposure, constraining financial flexibility until planned cash actions materialize. Higher debt raises refinancing and integration risks; failure to realize synergies or deleveraging targets would weaken credit metrics and raise funding costs over the medium term.
Wienerberger (WBRBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.30B
Dividend Yield1.61%
Average Volume (3M)421.00
Price to Earnings (P/E)17.6
Beta (1Y)0.99
Revenue Growth9.36%
EPS Growth213.66%
CountryUS
Employees19,975
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.07
Shares Outstanding547,488,460
10 Day Avg. Volume220
30 Day Avg. Volume421
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.20
Price to Sales (P/S)0.76
P/FCF Ratio9.96
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue1.00
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda6.30
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.55
Revenue Forecast (FY)$5.61B
Wienerberger Business Overview & Revenue Model
Company DescriptionWienerberger AG produces and sells bricks, roof tiles, concrete pavers, and pipe systems in Europe. It operates through Wienerberger Building Solutions, Wienerberger Piping Solutions, and North America segments. The company offers clay blocks for exterior walls, load and non-load-bearing interior walls, and partition walls, as well as for infill and separating walls under the Porotherm and POROTON brand names; facing bricks for façades under the Terca brand, and ceramic façade tiles under the Argeton brand for hospitals, schools, factories, and offices; clay roof tiles under the Koramic, Sandtoft, and Tondach brands; vitrified clay pipes and fittings, shafts, and accessories for sewage systems; and concrete and clay pavements for various applications that include pedestrian zones, public spaces in train stations or airports, and private terraces or gardens under the Semmelrock brand name, as well as paving bricks and terrace tiles under the Penter brand. It also provides plastic pipes, pipe systems, and pipe fittings for sewage disposal and rainwater drainage; sanitation and heating technology; and supplying energy, gas, and drinking water under the Pipelife brand. Wienerberger AG was founded in 1819 and is headquartered in Vienna, Austria.
How the Company Makes MoneyWienerberger generates revenue through multiple key streams, predominantly from the sale of its core products, including bricks, roof tiles, and concrete products. The company operates in several geographical markets, with a significant presence in Europe and North America, allowing it to tap into diverse construction sectors. Revenue is bolstered by strategic partnerships with construction firms, architects, and contractors, which enhance market reach and promote integrated solutions. Additionally, Wienerberger benefits from its commitment to sustainability, offering eco-friendly products that align with growing environmental regulations and consumer demand for green building materials. The company also invests in research and development to innovate and expand its product offerings, further driving sales and profitability.
Wienerberger Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call portrays a resilient performance: management delivered on EBITDA guidance, maintained a healthy 16.5% margin, doubled profit after tax, generated nearly EUR 500 million free cash flow and improved leverage and working capital despite materially softer end markets. Operational discipline (EUR 30m overhead savings) and a product mix shift (34% innovative products) underpin the positive results. At the same time, the company faces meaningful headwinds—notably sharp North American residential declines, a one-off EUR 30m energy cost burden in 2026, ongoing cost inflation, and a flat market outlook. Management is pursuing a strategic acquisition (Italcer) and plans to self-finance and deleverage, but the deal temporarily increases leverage. Overall, achievements and financial discipline are strong and visible, while several notable short-term challenges and macro risks remain.Q4-2025 Updates
Positive Updates
Delivered Guidance and Stable Margin
Achieved midyear EBITDA guidance; operating EBITDA margin remained broadly flat at 16.5% year-on-year despite weak markets.
Strong Profit After Tax and Cash Generation
Profit after tax roughly doubled to EUR 168 million; free cash flow nearly EUR 500 million (second-highest in company history), enabling debt reduction and shareholder returns.
Debt and Working Capital Improvements
Net debt reduced to about EUR 1.6 billion (leverage 2.2x); net debt down ~EUR 120 million year-on-year; gross debt down 10%; working capital ratio improved to 20% from 24%.
Revenue Mix Shift to Higher-Margin Products
Innovative products now represent ~34% of revenues; roofing and renovation mix grew—renovation nearly 50% of Western Europe business—supporting profitability.
Operational Cost Efficiency Delivered
Delivered ~EUR 30 million overhead savings in 2025 through strict cost discipline and structural simplifications; launched 'Fit for Growth' in Q3 2025 expected to deliver EUR 15–20 million annual savings at full run-rate.
Regional Outperformance and Market Share Gains
Western Europe new-residential volumes outperformed the market with a +2% volume increase; piping operations expanded market share in Europe and North America, with North American piping volumes growing and investments extended.
Disciplined CapEx and Shareholder Return
2026 capex guidance EUR 280 million (EUR 100m growth, EUR 160m maintenance, EUR 20m safety measures); dividend proposal maintained at EUR 0.95 per share with a payout ratio of 28% of free cash flow (within 20–40% policy).
Strategic Acquisition (Italcer) Strengthens Renovation Offering
Italcer acquisition: enterprise value ~EUR 560 million, expected full-year EBITDA contribution ~EUR 82 million; immediate consolidation (50%+1 share) to add ~EUR 50 million to 2026 EBITDA; initial cash impact of ~EUR 400 million with quick integration synergies (~EUR 10 million identified quickly, potential for more).
Negative Updates
Significant Market Weakness vs 2021 Reference
Combined relevant markets (new build, new residential, infrastructure, renovation) remain depressed at ~65% of the 2021 reference level (down from ~70% in 2024).
Severe North America Residential Decline
Canada new-residential market declined by more than 30%; U.S. new-residential down ~9–10%; North America revenues fell materially (Dagmar flagged a c.12% revenue decrease in North America) impacting performance and requiring efficiency measures.
Energy Cost Headwind in 2026
Company expects a Wienerberger-specific energy inflation one-off of about EUR 30 million in 2026 as purchased gas prices normalize from prior below-market forwards (~company paid ~EUR 24 in 2025 vs market EUR 32–33). Management says the EUR 30m is not easily avoidable.
2025 Cost Inflation and Ongoing Inflation Pressure
2025 cost inflation of ~4% (more than EUR 100 million), driven mainly by labor and energy; management expects general inflation ~2.5% in 2026 and plans price increases up to ~2% (partial offset only).
Weak Short-Term Seasonality and Weather Impact
Exceptionally harsh winter across Europe and North America is expected to cause a weak start to 2026 (Q1 and H1 below prior-year comparatives), increasing near-term volatility and delaying recovery.
Temporary Leverage Increase from Italcer Acquisition
Initial acquisition financing (EUR 400 million cash for 50%+1) will raise net debt above EUR 2 billion (approx. 2.5x leverage) before planned deleveraging measures; additional interest costs expected given higher debt and market rates.
Receivables Reduction Driven Partly by Factoring
Receivables fell to the lowest ratio since 2010, but part of the reduction was due to increased factoring (around +EUR 30 million), indicating working capital improvement was a mix of operational action and financing tools.
Flat Market Outlook for 2026
Management guidance assumes flat residential, infrastructure and renovation markets in 2026 with no structural recovery and ongoing macro/political uncertainty, limiting upside in the near term.
Company Guidance
Wienerberger’s 2026 guidance assumes flat markets (residential, infrastructure, renovation) and flat volumes/prices (target price increases up to 2% vs. inflation ~2.5%) and gives operating EBITDA for the ongoing business of EUR 760m (2025 operating EBITDA EUR 754m; efficiency/organizational measures +EUR 36m to EUR 790m, offset by a one‑off energy burden of ~EUR 30m); adding the expected consolidated Italcer contribution (~EUR 50m in 2026; Italcer EV ~EUR 560m, EBITDA ~EUR 82m) yields a group operating EBITDA target of ~EUR 810m. Key financial targets and assumptions: CapEx EUR 280m (EUR 100m growth, EUR 160m maintenance, EUR 20m Secure Zone), 2025 free cash flow ~EUR 500m, year‑end 2025 net debt ~EUR 1.6bn (leverage 2.2x), initial Italcer cash/debt impact ~EUR 400m (pro forma leverage ≈2.5x) with management planning ~EUR 220m of cash actions (working‑capital, CapEx, real‑estate) to lower net debt to ~EUR 1.8bn by end‑2026; Fit for Growth run‑rate savings EUR 15–20m (plus EUR 30m overhead savings already delivered), energy market price expected ~EUR 32–33 (company paid ~EUR 24 in 2025), and a dividend proposal of EUR 0.95/share (payout ~28% of FCF).Wienerberger Financial Statement Overview
Summary
Financials show a cyclical downturn: 2025 revenue contracted (-5.4%) and profitability is well below 2022 peaks (net margin ~3.6% vs ~11.4%). Offsetting this, cash generation is a clear strength (solid operating cash flow and improved 2025 free cash flow) and the balance sheet has gradually de-risked with improving debt-to-equity, keeping leverage manageable.Income Statement
Profitability has cooled materially versus prior peak levels. Revenue declined in 2025 (-5.4%) after a roughly flat-to-soft 2023, and margins compressed meaningfully from 2022–2023 highs (net margin down to ~3.6% in 2025 vs ~11.4% in 2022; EBIT margin ~7.2% in 2025 vs ~14.8% in 2022). A positive offset is the sharp rebound in 2025 net income versus 2024 (2024 was notably weak), but overall earnings quality looks more cyclical than steadily improving.62
Positive
Balance Sheet
Leverage appears manageable for the profile, with debt-to-equity improving from higher levels in 2020 (~0.91) to ~0.69 in 2025, and equity remaining sizable relative to the asset base. However, leverage is still meaningful and returns on equity have come down substantially from 2021–2022 levels (2024 ROE ~2.8% vs 2022 ~23.2%), signaling weaker profitability supporting the capital structure in the most recent periods.68
Positive
Cash Flow
Cash generation is a relative strength: operating cash flow remained solid in 2024–2025 (~590–606M) and free cash flow improved in 2025 (~336M), with free cash flow growth accelerating in 2025 (+11.2%). That said, free cash flow conversion versus net income is only moderate in the latest year (free cash flow about ~55% of net income in 2025), and cash flow performance has been somewhat choppy over time (notably weaker free cash flow in 2023).74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.39B | 4.51B | 4.22B | 4.98B | 3.97B |
| Gross Profit | 1.54B | 1.61B | 1.61B | 1.95B | 1.42B |
| EBITDA | 678.14M | 621.77M | 787.42M | 1.01B | 661.30M |
| Net Income | 159.45M | 79.76M | 334.36M | 567.91M | 311.89M |
Balance Sheet | |||||
| Total Assets | 6.14B | 6.42B | 5.47B | 5.20B | 4.90B |
| Cash, Cash Equivalents and Short-Term Investments | 212.91M | 281.37M | 420.19M | 305.58M | 370.59M |
| Total Debt | 1.92B | 2.13B | 1.70B | 1.45B | 1.54B |
| Total Liabilities | 3.34B | 3.54B | 2.81B | 2.75B | 2.75B |
| Stockholders Equity | 2.80B | 2.86B | 2.66B | 2.45B | 2.15B |
Cash Flow | |||||
| Free Cash Flow | 336.19M | 277.17M | 138.36M | 371.23M | 230.81M |
| Operating Cash Flow | 606.10M | 589.54M | 409.95M | 723.80M | 510.56M |
| Investing Cash Flow | -249.74M | -913.81M | -322.95M | -332.80M | -666.70M |
| Financing Cash Flow | -398.62M | 162.09M | 38.76M | -448.79M | -147.62M |
Wienerberger Technical Analysis
Negative
7.20
Price Trends
6.91
Negative
6.63
Negative
6.86
Negative
Market Momentum
-0.15
Positive
28.30
Positive
2.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WBRBY, the sentiment is Negative. The current price of 7.2 is above the 20-day moving average (MA) of 6.92, above the 50-day MA of 6.91, and above the 200-day MA of 6.86, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 28.30 is Positive, neither overbought nor oversold. The STOCH value of 2.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WBRBY.
Wienerberger Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.09B | 17.04 | ― | 0.94% | 0.28% | -1.57% | |
71 Outperform | $17.43B | 17.15 | 3.14% | 0.74% | -6.34% | 210.97% | |
69 Neutral | $2.06B | 13.46 | 23.74% | 1.12% | 15.70% | 19.92% | |
67 Neutral | $3.30B | 17.55 | 6.69% | 1.61% | 9.36% | 213.66% | |
64 Neutral | $954.49M | 21.35 | 16.04% | 5.46% | 9.24% | 24.01% | |
63 Neutral | $1.22B | 31.43 | 5.06% | ― | -33.99% | -61.41% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.