SigmaRoc – next week’s Interims will show the group’s confident progress for 2026, shares 126p, easily capable of 25% rise

Mark Watson-Mitchell - 01.09.2026

Next Monday, 7^th September, SigmaRoc (Lon:SRC) will announce its Interim Results to end-June – they will show an impressive rise in both profits and its operating margins.

The European lime and minerals group, which is capitalised at some £1.4bn, is a long-time favourite of mine and with its shares now at 126p I foresee an early rise towards the 153p peak reached in February this year.

The Business

SigmaRoc is a quoted European lime and minerals group.

Lime and limestone are key resources in the transition to a more sustainable economy.

New applications for lime and limestone products as part of a drive for sustainability include the production and recycling of lithium batteries, the decarbonisation of construction including through substitution of cementitious material and new building materials, and environmental applications including lake liming, air pollution and direct air capture.

SigmaRoc invests in and acquires businesses in the lime and minerals sector.

The principal activity of the group is the production of lime and minerals products.

It has 110 sites across 14 countries, boasting a massive 114-year reserve life.

The business is asset-backed with over 2.7bn tonnes of mineral reserves.

The group's aim is to create value for shareholders through the successful execution of its strategy in the lime and minerals sector. 

SigmaRoc seeks to purchase assets in fragmented markets and extracting efficiencies through active management and by forming the assets into larger groups.

The group looks to implement operational efficiencies that improve safety, enhance productivity, increase profitability and ultimately create value for its shareholders. 

It looks to de-risk its investments through the selection of projects with strong asset backing.

Interim Trading Update

On Wednesday, 22^nd July, the group reported a strong first half for 2026, with revenue increasing by 2.5% to £523.1m and EBITDA growing by 11.3% to £131.2m, leading to an improved EBITDA margin of 25.1%.

Underlying EPS rose by 12.2% to 5.23p, and covenant leverage decreased significantly to 1.66x, reflecting operational improvements and a strengthened balance sheet.

The company secured permitting for an additional 64m tonnes of limestone at its Klinthagen operations.

The Board remains confident in achieving full-year expectations, supported by structural demand drivers and a focus on operational excellence.

Outlook

SigmaRoc is a diversified business with exposure to both structural and cyclical growth drivers.  

Structural demand is supported by several themes including energy transition projects, European re-industrialisation, increased European defence spending and increasing AI and data-centre investment.

These will be further enhanced by a cyclical recovery in construction, in particular residential construction, given a Europe wide requirement for additional dwellings.

The group also recognises the continued tensions in the Middle East and remains focused on cost control, the mitigation of energy costs and the impact the conflict may have on end demand.

As demonstrated in the first half, the group is well placed to manage these impacts through its flexible cost base, existing financial hedges and contract structures.

With signs of improvement in some end-markets and the continued focus on operational excellence, the Board remains confident in delivering full-year results in line with consensus expectations.

Management Comment

CEO Max Vermorken stated that:

"SigmaRoc delivered a strong first-half, with improved profitability and continued deleveraging.

Core volumes were modestly up year-on-year, a major achievement given the levels of uncertainty following the conflict in the Middle East.

Pricing was strong with some mix effects also at play.

The results demonstrate the quality of our business model and the resilience of our sector adapting to ever-changing circumstances.

SigmaRoc has an industry-leading position and substantial reserves of scarce, high-quality mineral assets.

Lime and limestone are critical ingredients with few, if any, substitutes across a broad range of mission-critical applications in three main segments - industry, environment and construction.

These attributes generate a highly attractive, predictable and long-term commercial and financial profile with through-cycle resilience.

In addition, the group is well positioned to benefit from powerful infrastructure and re-industrialisation tailwinds, including the German stimulus as its deployment gains momentum, as well as the returns it can capture from its capital allocation strategy geared towards growth."

The Equity

There are some 1,114.85m shares in issue.

The larger holders include Fidelity Management & Research (10.05%), Capital Research Global Investors (8.04%), Invesco (3.98%), BlackRock (3.71%), Driehaus Capital (3.25%), Janus Henderson Investors (3.18%), Columbia Threadneedle Investors (3.10%), Conversant Opportunities (2.95%), Polar Capital (2.86%), BGF Investment (2.60%) and Wellington Management (2.51%).

Broker Views

Some nine firms closely follow the group, with eight rating the group’s shares as a Buy, and the other considering them as a Hold.

The Average Target Price of the analyst consensus is 158p a share, with the Lowest being 130p and the Highest at 216p.

The current-year consensus suggests revenues of £1,066m, with EBITDA of £276.0m and earnings of 11.5p per share.

For 2027, they estimate £1,117m sales, £291.0m EBITDA and 12.6p per share in earnings.

It was the analysts, Adrian Kearsey and Kate Middleton, at Panmure Liberum, who rated the shares as a Buy, with that 216p Target Price.

Ahead of next week’s Interim Results announcement the brokers have estimates out for the year to end-December, to show sales of £1,089m (£1,036m), while pre-tax profits could rise to £172.4m (£157.1m), generating earnings of 11.2p (10.7p) per share.

For the 2027 year, they see £1,141m sales, £189.8m profits and 12.4p per share in earnings.

Looking further ahead they have estimates for group sales to rise to £1,206m, with £206.2m profits, and 13.4p earnings per share.

Deutsche rate the shares as a Buy, looking for 150p. 

Berenberg Bank have Hold out on the stock, with a 130p TP.

My View

Over the last year this group’s shares have ranged in price from 105p to 153p, they are now at just 126p - I believe them to be totally undervalued.

They are trading on only 11.2 times current-year earnings and just a 9.4 times 2028 prospective.

In my view, an early price objective has to be over 150p.

(Profile 04.09.20 @ 49p set a Target Price of 65p*)

(Profile 26.07.23 @ 62.20p set a Target Price of 80p*)

(Profile 24.07.25 @ 113p set a Target Price of 140p*)

(Profile 01.09.26 @ 126p set a Target Price of 150p)

Value is surfacing