SigmaRoc – Third Quarter boost and earnings accretive acquisition, shares undervalued at 119p
Mark Watson-Mitchell – 21.10.2026
This morning the £1.3bn-capitalised SigmaRoc (LON:SRC) reported a strong third quarter, with revenues for the nine months to Wednesday 30th September increasing by 2.5% to £795m, and underlying EBITDA growing by 7.5% to £207.3m, resulting in an improved underlying EBITDA margin of 26.1%.
The European lime and minerals group also announced the acquisition of AB Dolomitas for €110m, which is expected to be earnings-enhancing in 2027.
Despite some challenging geographic markets and subdued residential construction, all end market sectors demonstrated revenue growth in Q3, and the Board remains confident in achieving full-year expectations.
Outlook
The Group continues to demonstrate resilience against a backdrop of subdued activity in certain end markets, and amidst geopolitical and macroeconomic uncertainty.
Whilst there are potential catalysts for improved market conditions, the timing and extent of this remains difficult to predict.
However, SigmaRoc is well-positioned to benefit from improved conditions, as and when they occur.
The Board’s view on the full year 2026 outlook remains unchanged.
Management View
CEO Max Vermorken stated that:
“Despite continuing uncertainty in some markets, Q3 trading demonstrates the effectiveness of our business model.
Our agile structure, focus on operational excellence, and the hard work of our whole team has once again delivered a solid result.
We are delighted by the acquisition of AB Dolomitas, which is expected to complete later this year, and is expected to be earnings-enhancing for 2027.
We see little change in Q4 in terms of the current market uncertainties.
However potential tailwinds remain, with EU support for sectors such as steel and mining continuing, the German stimulus programme being ongoing, and the potential for a cyclical recovery in residential construction all able to contribute to a meaningful improvement in our business in due course.
Whilst it is too early to call their arrival, we remain hopeful that these tailwinds will at some point deliver an improved trading environment in which SigmaRoc will flourish.”
Broker Views
Consensus expectations for SigmaRoc, being the average of forecasts for the year to end-December provided by Analysts covering the Company, are for revenues of £1,074m, underlying EBITDA of £280m (range £276m to £285m), and underlying basic EPS of 11.6p.
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 £1,074m, with EBITDA of £276.0m and earnings of 11.6p 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 the Interim Results the brokers had 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
This group’s Management has a record of making effective acquisitions, so today’s deal holds promise – as does the group itself.
The shares are undervalued at 119p, down 5p after the Q3 statement.
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