Rockwool (CPSE:ROCK B) Net Margin Drops Below Community Expectations in Q3 2025 Results

Rockwool (CPSE:ROCK B) has just released its Q3 2025 results, reporting revenue of €963 million and basic EPS of €0.6, with net income (excluding extra items) at €122 million. Looking back, the company has seen revenues move from €957 million in Q3 2024 through varying quarters to €963 million this quarter. EPS has ranged between €0.54 and €0.7 per share across recent results. Margins settled somewhat from last year's levels, reflecting steady but less dynamic profitability as investors weigh what comes next.

See our full analysis for Rockwool.

Next up, we will compare these figures against the prevailing narratives in the market to see how Rockwool’s realities stack up and which stories might break new ground.

See what the community is saying about Rockwool

Net Profit Margin Dips Below Last Year’s Level

• Rockwool’s net profit margin for the past twelve months was 12.8%, down from last year’s 13.4%. Overall earnings growth stagnated despite a solid five-year compound growth rate of 17.5% annually.
• Analysts’ consensus view notes that margin compression presents challenges to accelerating profit momentum but highlights that the margin remains in line with medium-term expectations for the sector.
  • This figure still outpaces the industry average, supporting the broader narrative that strong cost control and product innovation are helping Rockwool defend profitability.
  • In contrast, recent quarters showed net income falling from €155 million in Q3 2024 to €122 million in Q3 2025, highlighting that maintaining previous levels of profitability amid rising costs remains a key issue for both bullish investors and consensus supporters.

Consensus says these resilient margins may keep Rockwool on track. However, the recent drift lower adds suspense to each new result.
📊 Read the full Rockwool Consensus Narrative.

Valuation Looks Strong Versus Peers

• Rockwool is trading at a Price-To-Earnings ratio of 12.1x, below both the Danish market average of 15x and the sector average of 22.8x. This level is also beneath the analyst price target of 278.20 (compared to the current share price of 216.3), reflecting the stock’s perceived value advantage relative to rivals.
• Consensus narrative points out that this discount is balanced by slower earnings and revenue growth forecasts, with revenue expected to grow 3.7% annually and earnings 4.5% per year, both just below the Danish market averages.
  • The analyst target suggests about a 29% potential upside from today’s share price, but skepticism remains about whether Rockwool’s current growth momentum will be sufficient to fully bridge that valuation gap.
  • Some critics highlight slower top-line projections as a limitation on immediate upside, despite the sector-relative low multiple.

Dividend Yield Outpaces Market Average

• Rockwool’s dividend yield of 2.91% over the past twelve months stands out as competitive compared to peers, reinforcing the stock’s appeal for income-seeking investors and helping to offset the lower expected growth rates compared to the market.
• Consensus narrative underlines that the steady dividend, combined with high earnings quality ratings, is viewed as a foundation of the long-term investment case, especially as the company navigates margin pressures.
  • Even as profit margins compressed year on year, the consistent dividend distribution signals confidence in ongoing cash flow generation and capital discipline.
  • While sector-wide dividend yields fluctuate, Rockwool’s stability in this area helps maintain investor interest, even if near-term profit acceleration is difficult to achieve.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Rockwool on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Rockwool.

See What Else Is Out There

While Rockwool’s growth rates are slowing and margin pressure threatens near-term profit acceleration, the outlook for earnings expansion remains tempered compared to market averages.

If you want to focus on companies with more consistent performance and steadier momentum, check out stable growth stocks screener (2074 results) for stocks that deliver reliable growth regardless of market conditions.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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