Wienerberger Confronts Weak Housing Demand With Faster Cost Cuts and a Portfolio Review

Wienerberger trimmed its full-year EBITDA guidance to EUR 640-650 million and launched a strategic review as weak construction and rising costs weigh.

Wienerberger is accelerating its cost-reduction efforts and has launched a strategic review of its business units, as a sluggish residential construction cycle and a sharp jump in input costs force the Austrian brickmaker to scale back its ambitions for the year.

The company now expects full-year operating EBITDA of EUR 640 million to EUR 650 million. For the third quarter, it guided to revenue of roughly EUR 1.2 billion to EUR 1.3 billion and operating EBITDA of about EUR 170 million to EUR 180 million. Management pointed to weaker construction activity than previously assumed as the main reason for the downgrade.

Margins Squeezed From Both Sides

Demand has been softest in key markets including the UK, the US and Canada, where new-build residential activity remains subdued. A seasonal pickup in construction during September came in below expectations. At the same time, Wienerberger has faced steep increases in energy, raw material and logistics costs since late August, eating into profitability.

Analysts note that elevated mortgage rates and inflation continue to act as a brake on housing projects and building permits, keeping the sector's structural hurdles high.

Berenberg Keeps Buy Rating Despite Target Cut

Berenberg analyst Harry Goad lowered his price target on the stock from EUR 25.00 to EUR 19.00 on Friday while maintaining a buy recommendation. Goad cited higher mortgage rates and inflation as the primary drags on the construction environment.

UBS Stake Move Draws Attention

Separately, UBS Group AG reported a change in its holding in Wienerberger after crossing a disclosure threshold on October 6. The shift in the shareholder base comes as the company works through its operational challenges.

Shares Under Pressure

The market has taken note of the deteriorating outlook. The stock was quoted at EUR 15.60 on Friday, a decline of 49% since the start of the year. In pre-market trading, the shares changed hands at EUR 15.61.

Investors now turn their attention to November 12, when Wienerberger is scheduled to publish results for the first nine months of 2026. Management plans to use that occasion to update the market on the progress of its accelerated cost-optimization program and on the strategic direction of its business units.