Wienerberger ends third-best year in the company's history: higher sales and dividend despite declining profit

2024 was the third-best year in the history of Wienerberger, according to a press release fom 26 February, despite a challenging market environment, especially in the new build sector. The Group generated sales of around EUR 4.5 billion, six per cent more than in the previous year, and an operating EBITDA of EUR 760 million, down six per cent compared to 2023. Profit after tax fell by 76 per cent from EUR 334.4 million to EUR 79.8 million.

The construction sector faced significant headwinds in 2024, including a sharp decline in single- and multi-family home construction of sometimes more than 25 percent. Rising interest rates, increasing construction costs and political uncertainties further impeded market development. Wienerberger reacted with capacity adjustments, restructuring measures and disciplined cost management that have contributed 100 million euros to profits, securing a group-level operating EBITDA margin of around 17 percent. Thanks to a strong focus on working capital management and inventory optimization, the company was able to generate a free cash flow of close to 420 million euros. These measures were complemented by targeted portfolio adjustments, securing the company's financial stability, and allowing for further growth. Wienerberger attributes the noticeable decline in profit after tax to the sale of activities in Russia and restructuring measures.

Strengthening the market position: accelerated integration, synergies, and strategic growth

The resilience of Wienerberger’s diversified portfolio was particularly evident in the roof sector, which profited from the high demand for renovations in Europe. With the integration of Terreal, Wienerberger further strengthened its market position and its portfolio of solutions for the entire building envelope. The integration process advanced ahead of schedule, further contributing to overall profitability. Additional strategic acquisitions – including Slatek OY in Finland and Tekken AS in Norway (smart water solutions) and GrainPlastics in the Netherlands (drainage and cable protection solutions) – have expanded the company's portfolio, optimized the supply chain and positioned Wienerberger for long-term, sustainable growth.

Wienerberger also continued its growth in the sector of piping for water and energy management and gained further market share. Thanks to targeted investments in plant expansions and new system solutions, this sector made a significant contribution to the Group's overall performance and now represents the largest business unit within Wienerberger.

Performance of the Segments

Europe West: In 2024, external revenues amounted to 2.5 billion euros (2023: 2.2 billion euros) and operating EBITDA came to 350 million euros  (2023: 378 million euros). The results include the ten months of strong contributions from the Terreal Group.

In countries such as Germany, France and Belgium, the anticipated recovery of the new residential housing markets did not materialize as anticipated. High interest rates and inflation-driven construction costs continued to impact demand. The Dutch housing market has improved sequentially, driven by growth in roof sales volumes. Together with the continuing demand for pipework solutions, this led to a clear turnaround. Residential markets also recovered in the UK and Ireland, with the renovation sector remaining robust. In Scandinavian markets, Wienerberger further strengthened its position in smart water management by acquiring Slatek OY in Finland and Tekken AS in Norway.

Europe East: In 2024, external revenues amounted to 1.2 billion euros (2023: 1.2 billion euros) and operating EBITDA came to 219 million euros (2023: 220 million euros).

While the new-build market in Eastern Europe remained challenging, positive momentum was seen in some markets, driven by government-backed subsidies in Poland, the Czech Republic, and Hungary. In Croatia, the renovation and infrastructure sectors rebounded, contributing to earnings, with Vargon’s integration further strengthening Wienerberger’s market position. Austria continued to experience weak residential construction activity, while Hungary saw increased demand in renovation. Infrastructure projects in the Czech Republic developed positively.

North America: In 2024, external revenues amounted to 799 million euros (2023: 838 million euros) and operating EBITDA came to 191 million euros (2023: 213 million euros).

While long-term housing demand remained robust, the facade business in North America continued to be impacted by high mortgage rates. The pipe business, however, performed well, supported by sustained demand for water management solutions. Wienerberger strengthened its presence in the region through acquisitions, including Ludowici, a specialty roof tile manufacturer, and Summitville Tiles, a producer of facade systems.

Innovation and sustainability are central pillars of the strategy and drivers of growth

The strategy of Wienerberger for its long-term growth rests according to the press release on innovation and sustainability. Already today, the company generates 33 percent of its revenue from innovative products, with a goal of reaching 35 percent by 2026. One major step was the launch of Wioniq, bringing together four innovative companies – Inter Act, I-Real, Wideco, and Slatek – and creating a new platform for smart water and energy management solutions, which offers significant growth potential. To achieve more sustainability, Wienerberger is increasingly focusing on the circular economy by expanding recycling capacities and integrating more resource-saving materials into production. One key achievement in decarbonization was the opening of Wienerberger’s modernized CO₂-neutral brick plant in Uttendorf, Austria, where Wienerberger installed the world’s largest electric industrial kiln.

Wienerberger is ready for the reconstruction in Ukraine

As emphasised in the press release, with its comprehensive portfolio of sustainable building materials and infrastructure solutions, the company believes it is ready to make an important contribution to the reconstruction of Ukraine. The plants in neighboring countries enable the company to meet the demand for bricks, roof tiles, paving products, and plastic pipes. With sufficient free capacity, Wienerberger is ideally positioned for swift capacity increases and immediate deliveries.

Outlook 2025 and dividend

Although Wienerberger expects market conditions to stabilise, this will only have a limited impact on the company's core markets and uncertainties will remain high. The company will remain committed to strict cost discipline and operative efficiency to expand the Group’s EBITDA margin to 17.5 percent. The strategic priorities include optimising operating processes, increasing efficiency and seizing new growth opportunities.

Under the assumptions that (i) relevant end markets show a stable development in 2025 and (ii) interest rates will be cut further throughout 2025, Wienerberger expects an operating EBITDA of approximately 800 million euros.

The Executive Board will propose a dividend of 0.95 euros per share to the Annual General Meeting, which represents an increase of approximately 5.6 percent compared to the 2023 dividend per share of 0.90 euros. In addition to this step, the shareholder return is also to be improved through share buybacks. After the most recent share buyback programme was completed at the beginning of 2025, Wienerberger plans to withcancel up to 2 percent of the share capital.

The full 2024 Annual Report will be published on March 31, 2025.