Rockwool's Volume Inflection: From Tariff Anxiety to Record Revenue

Q2 2026 sees 10% revenue growth, raised guidance, and a capacity race to meet U.S. demand.

ROCK-B.CO · Earnings Call · 2026-08-20

The Long-Awaited Inflection

Rockwool’s second quarter of 2026 delivered exactly what management had been promising: volume-led growth. As CEO Jes Munk Hansen put it, “the group delivered revenue growth of 6% the first half year. Importantly, this was driven by volume.” — Jes Munk Hansen, CEO · 2026-08-20 The quarter itself was even stronger, with 10% revenue growth crossing the €1 billion mark for the first time. The company raised its full-year revenue guidance to 5-7% in local currencies, while keeping the EBIT margin range unchanged at 13-14%. That top-line acceleration stands in stark contrast to the narrative just a year ago. In August 2025, Hansen had described a "dramatic" slowdown in North America, citing tariff uncertainty and project delays.

It is what we see now. I mean, we simply don't know when this situation will improve. And I am here talking in particular about the U.S.
Jes Munk Hansen, CEO · 2025-08-21

The cause was clear: “Tariffs is the big driver, but it's not necessary the direct tariffs.” — Jes Munk Hansen, CEO · 2025-08-21 By mid-2026, the situation had reversed: the U.S. posted double-digit growth, and the company is now scrambling to meet demand.

From Hesitation to Sourcing Constraints

The turnaround is not just about demand recovery. It reflects a structural shift in the stone wool market, particularly in North America. Hansen noted that stone wool is gaining share as a category, and Rockwool is taking share within it. The company is now importing product from Europe to bridge the gap until its new U.S. plant comes online. "For the foreseeable future, it's still limited what we need to import from Europe to the U.S. market," Hansen said. “For the foreseeable future, it's still limited what we need to import from Europe to the U.S. market.” — Jes Munk Hansen, CEO · 2026-08-20 This sourcing limitations is a new challenge—and an opportunity—for the company, which is also benefiting from elevated energy prices driving energy efficiency investments and from wildfire-related awareness of non-combustible insulation. The shift is also playing out in Europe. Eastern Europe grew 31% in the quarter, and even weak markets like France and Germany are improving. But the company is mindful of the mix: much of the growth is in lower-margin flat roof products, and CFO Kim Junge Andersen warned about negative product and country mix. "We do see a distinct difference compared to the first half that was mainly volume-driven and very limited price-driven," he said. “What we see is, previously we had expected a 0% volume growth in the second half of the year. We now expect to reach 1%-2% volume growth, and then on top of that comes then the impact from the pricing.” — Kim Junge Andersen, CFO · 2026-08-20

Cost Pressures and the Pricing Mechanism

Despite the strong volume, margins remain under pressure from rising energy, logistics, and maintenance costs. The company announced price increases effective July 1, and expects them to stick throughout the second half. But the cost environment is fluid. "We have covered now up to 75% of the Q4 electricity and gas," Andersen noted, but foundry coke—the largest energy input—cannot be hedged forward beyond a quarter. The market’s concern is not just margins but the escalating capital expenditure program. Rockwool now expects CapEx of €750 million this year, up from €700 million, and elevated spending to continue through 2027 as four major factories are built. Asked about returns, Hansen committed to providing more visibility.

Kim and I are looking at each other and nodding and saying, yes. Fair question, fair comment, and definitely also something we have discussed here.
Jes Munk Hansen, CEO · 2026-08-20

This, he said, could come in the form of an analyst day or other granular disclosures. The company’s premium positioning is also being reinforced by the shifting global narrative. While many reporting companies this week are fixated on tariff refunds and trade policy, Rockwool’s story is about energy prices, fire safety, and capacity. That divergence underscores the company’s unique position: it is not just a cyclical building materials play but a beneficiary of structural themes around decarbonization and non-combustible construction. The company’s prior caution is well documented. In May 2025, Hansen had said: “We don't expect a large volume growth. There's a slowdown everywhere and a hesitation.” — Jes Munk Hansen, CEO · 2025-05-20 The 2026 results show that hesitation has evaporated, at least for now. The question is whether Rockwool can keep up with demand without diluting its margins. The guidance holds the answer, and the next two quarters will tell if the pricing stickiness and cost discipline hold.