ROCKWOOL Q1 2025: Revenue Up 4%, EBITDA at 223 MEUR, EBIT Margin Down 0.5%

ROCKWOOL A/S reported Q1 2025 revenue of 959 MEUR, a 4% increase in both local currencies and reported figures compared to the previous year. EBITDA reached 223 MEUR with a 23.2% margin, while EBIT increased 1% to 154 MEUR. Investments totaled 93 MEUR, and the company purchased 84,680 B shares for a total of 31 MEUR. The outlook for 2025 includes revenue growth of low single-digit percent in local currencies, an EBIT margin around 16%, and investments around 450 MEUR excluding acquisitions.

Rockwell Medical Inc. (RMTI) reported its Q1 2025 earnings, revealing a 17% decrease in net sales to $18.9 million from $22.7 million in the same period last year. Despite the decline, the company maintained a consistent gross profit of $3 million and a gross margin of 16%, up from 14% in Q1 2024. The net loss for the quarter was $1.5 million, an improvement over the previous year's loss of $1.7 million. Adjusted EBITDA was negative $400,000, primarily due to seasonal items associated with payroll tax and other expenses [1].

The company attributed the sales decrease to the largest customer transitioning to another supplier. However, Rockwell Medical Inc. is actively pursuing new business opportunities to mitigate this loss. The company launched a new single-use bicarbonate cartridge technology, expanding its product portfolio and addressing a growing market segment. The company also reiterated its 2025 guidance, projecting net sales between $65 million and $70 million, with a gross margin between 16% and 18% and an adjusted EBITDA between negative $500,000 and positive $500,000 [1].

In a positive development, Rockwell Medical Inc. successfully diversified its customer base by signing new contracts with leading regional, national, and global hemodialysis providers. The company is also exploring international market expansion, particularly in Latin America, and considering establishing a facility on the West Coast of the U.S. to capitalize on potential opportunities [1].

Cash, cash equivalents, and investments decreased to $17.3 million as of March 31, 2025, from $21.6 million at December 31, 2024. The company expects Q2 to be the low point for the year, with improvements thereafter. The ongoing negotiations with the largest customer may result in a scaled-down contractual commitment, potentially impacting future revenue [1].

Rockwell Medical Inc.'s Q1 2025 results reflect a mixed bag of results, with a significant decrease in net sales but improvements in gross margin and net loss. The company's focus on new product launches, customer diversification, and international expansion positions it for potential growth in the coming quarters. Investors should closely monitor the ongoing negotiations with the largest customer and the company's efforts to acquire new customers to replace lost revenue [1].

References:
[1] https://finance.yahoo.com/news/rockwell-medical-inc-rmti-q1-070312795.html