Wienerberger (WIE) Q3 2024 earnings summary

Executive summary

• Revenue for Q1–Q3 2024 increased by 3% year-over-year to €3,392 million, with solid results despite market headwinds and significant profitability decline.

• Operating EBITDA declined 9% to €602 million, with margin down to 17.7% from 20.2% due to lower capacity utilization and standstill costs.

• Achieved successful integration of Terreal, the largest acquisition in company history, accelerating cost synergies.

• Modernized plant network and expanded water management business in Northern Europe, driving growth and value creation.

• Maintained strong cost discipline and cash management, resulting in robust free cash flow despite challenging market conditions.

Financial highlights

• Q3 2024 revenue increased 9% year-over-year to €1,179 million; operating EBITDA fell 4% to €202 million.

• Net result for Q3 2024 was €47 million, down 47% from €89 million in Q3 2023, impacted by lower activity and higher financing costs.

• Nine-month revenue remained flat at approximately €3.4 billion; EBITDA margin for the period around 18%.

• Free cash flow for Q1–Q3 2024 improved to €174.2 million from negative €8.5 million in the prior year.

• Terreal contributed €50.6 million to EBITDA in the first nine months, slightly below expectations due to weak German and French markets.

Outlook and guidance

• Operating EBITDA for 2024 expected in the range of €750–770 million, with potential upside depending on weather.

• Confident in robust demand for renovation and infrastructure into 2025; new build segment expected to recover, especially in the UK, Ireland, and Eastern Europe.

• Pricing expected to improve in Q4 and further in 2025, with planned price increases of 2–3% to offset anticipated cost inflation of 3–3.5%.

• Terreal's EBITDA contribution projected to exceed €100 million in 2025.

• EBITDA for 2025 expected to be well above €800 million, driven by operational leverage and efficiency gains.