SigmaRoc flags better-than-expected full-year performance
19th Jan 2026 12:57
(Sharecast News) - SigmaRoc said in an update on Monday that it delivered a strong performance in 2025, with earnings expected to come in ahead of market consensus and underlying earnings per share around 10% above its previous guidance, supported by disciplined cost control, synergy delivery and resilient margins despite softer volumes.
The AIM-traded group said revenue for the year ended 31 December rose 4% year-on-year to £1.036bn, reflecting pricing and mix benefits that offset lower volumes, while underlying EBITDA was expected to exceed around £262m, up more than 16% from £224.6m in 2024.
Underlying EBITDA margins improved by 280 basis points to approximately 25.3%, driven by strong cost discipline and the delivery of synergies, while underlying earnings per share were expected to be about 10.5p, around 26% higher year on year.
Covenant leverage was expected to close the year at roughly 1.8 times, down from 2.1 times, supported by strong second-half cash generation, with return on invested capital improving to above 12%.
On a pro-forma basis, which includes all continuing operations for both years, revenue declined by around 1% to £1.029bn due to lower volumes, while underlying EBITDA increased by about 8%, lifting margins by 210 basis points to 25.4%.
Core volumes fell 3% year-on-year, reflecting weaker construction and steel demand, while additional volume reductions of 6.8% were implemented through planned plant network and commercial optimisation initiatives announced previously.
SigmaRoc said trading conditions varied across regions, with strong execution in the UK and Ireland, signs of recovery in Belgium and the Netherlands, improving sentiment in Germany, and robust cost control supporting results in the Nordics.
The group said it achieved its minimum target of €40m of recurring synergies two years ahead of schedule following the acquisition of CRH assets, lifting EBITDA from £238m at the time of the transaction to £262m at the end of 2025 and offsetting around £10m of volume-related EBITDA losses.
It added that further gains were expected through ongoing self-help and optimisation initiatives.
During the year, SigmaRoc agreed the sale of three non-core businesses for total proceeds of around £18m at an aggregate multiple of roughly 7.5 times last-12-months EBITDA, formally closing its divestment programme while continuing to review portfolio optimisation opportunities.
SigmaRoc said it had also started the process of refinancing its principal banking facilities, with the new arrangements expected to provide increased capacity under its revolving credit facility and improved terms to support future acquisitions.
The group highlighted continued progress on sustainability, including maintaining a CDP Climate Change rating of B, improving its Water Security rating to B, increasing renewable electricity usage to 83%, and starting the conversion of kilns to biofuel, including a lime kiln in Czechia.
Looking ahead, the board said it was cautiously optimistic for 2026, citing expected support from German infrastructure stimulus, improving conditions in European steel markets, increased defence spending, easing interest rates and structural growth drivers such as data centres, AI and green economy investment, although weather disruption has slowed the start of the year in some regions.
"This 2025 update once again demonstrates the resilience and quality of our business," said chief executive Max Vermorken.
"We have taken timely actions to capture synergies and further operational improvements, delivering strong progress in operational metrics in this last year."
He added that the group expected final 2025 results to be ahead of expectations and said SigmaRoc was "well positioned to continue our growth in 2026."
SigmaRoc said it was planning to publish its audited full-year results and ESG report by the end of March.
At 1233 GMT, shares in SigmaRoc were up 2.95% at 132.8p.
Reporting by Josh White for Sharecast.com.