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Wienerberger: From Vienna's Brickworks to Global Building Solutions Leader
Introduction: The Two-Hundred-Year Transformation
In 2024, as European construction markets struggled with elevated interest rates and subdued new-build activity, a 205-year-old Austrian company quietly delivered its third-best financial result ever. Wienerberger achieved €4.5 billion in revenues while maintaining a robust 17% operating EBITDA margin—a performance that would have seemed impossible just fifteen years earlier, when the same company teetered on the edge of crisis.
Wienerberger AG is an Austrian brick maker which is Europe's leading manufacturer of roof tiles and the world's largest producer of bricks. In addition to clay products, the company is one of the leading suppliers of plastic pipe in Europe. With its over 200 production sites, the Wienerberger Group generated revenues of €4,513 million and EBITDA of €760 million in 2024.
The numbers tell only part of the story. What makes Wienerberger compelling is the central question that animates its journey: How did a 200-year-old brick company transform from a pure commodity player into a diversified building solutions provider—and why did that transformation only happen in the last fifteen years?
The answer involves a near-death experience during the 2008-2009 financial crisis, a visionary leader who took the helm at the company's lowest point, and a strategic pivot that repositioned a traditional industrial company for the megatrends of the 21st century: climate change, aging building stock, and the imperative for sustainable construction.
Heimo Scheuch has been leading wienerberger as CEO since 2009, transforming the company from a brick manufacturer into a leading provider of innovative and ecological building material and infrastructure solutions in Europe and North America. Under his leadership, revenues have more than tripled, the business model has fundamentally shifted from cyclical commodity production to diversified solutions provision, and the company has established itself as a pioneer in decarbonizing one of the world's most carbon-intensive industries.
This is the story of how a company founded when Napoleon still lived used the wreckage of a financial crisis to reinvent itself for the age of climate crisis.
The Origin Story: Clay Deposits and Imperial Ambitions (1819-1869)
The Wienerberg Clay Advantage
The history of wienerberger began in 1819. Back then, the Lower Austrian civil engineer Alois Miesbach purchased the state-owned brickworks at Wienerberg in south Vienna. Miesbach was 29 years old when he made this fateful decision—young, ambitious, and blessed with an engineer's eye for opportunity.
The location was strategic genius. The Wienerberg—literally "Viennese Mountain"—lay at the southern edge of a rapidly expanding imperial capital, sitting atop some of the richest clay deposits in Central Europe. Vienna's post-Napoleonic building boom demanded vast quantities of bricks, and Miesbach positioned himself to supply them.
Innovative processes and products were of a high priority from the very beginning: As early as 1860, the first kiln was installed at the brickworks. Its circular design meant that energy costs were significantly reduced and this allowed for almost continuous production.
This innovation—the Hoffmann ring kiln—was revolutionary. Traditional brick-making used intermittent clamp kilns, which had to be loaded, fired, cooled, and unloaded in a batch process. The circular kiln design allowed perpetual operation, with bricks moving through different temperature zones continuously. Under Miesbach's leadership, the factory quickly scaled operations, reaching an annual output of 50 million bricks by 1845 with the addition of 37 kilns and extensive drying sheds.
Early Vertical Integration
Miesbach understood something essential about industrial competition: control your inputs, or competitors will undercut you. He purchased brick plants, coal mines, and extensive real estate holdings. This vertical integration—securing raw material sources alongside manufacturing capacity—would become a defining characteristic of Wienerberger's strategy across two centuries.
Miesbach continued to increase manufacturing capacity as the business grew, and by the time of his death in 1857 the company had nine factories, a clay plant, and multiple coal mines.
When Miesbach died, his nephew Heinrich Drasche took the helm. Miesbach's nephew, Heinrich Drasche, took over at the company and continued its expansion. Among other achievements, the company added more than 400 new houses outside of the city center, as well as ten new houses on Vienna's exclusive Ringstrasse, under Drasche's leadership.
Drasche represented a new kind of industrialist—one who understood that brick manufacturing and construction were two sides of the same coin. His "HD" initials appeared on bricks used in nearly all the magnificent buildings constructed during Vienna's "Founders Period" between 1880 and 1910.
The IPO: One of Europe's Oldest Listed Companies
In 1869, an initial public offering of the company on the Vienna Stock Exchange marked another important milestone. This made Wienerberger one of the oldest continuously listed companies in Europe—a distinction it maintains to this day.
The Wienerberger Ziegelfabriks- und- Bausgesellschaft, as the company came to be known, incorporated as a limited liability company in 1869, and became one of the first Austrian companies to list its stock on the Vienna Stock Exchange. Joining the company's board of directors at this time was architect Heinrich Freiherr von Ferstel. The association with von Ferstel led the company to build such important Viennese structures as the Wiener Votivkirche and the Palais Ferstel.
In addition to brick manufacturing and construction, Wienerberger added a number of other businesses, including that of ornamental sculptures. These sculptures became a major export product for the company and were found in many European capitals. This activity continued until World War II.
The company's shares have been publicly traded continuously for over 155 years—surviving two world wars, the collapse of empires, hyperinflation, Nazi occupation, and multiple financial crises. Founded in 1819, the company's shares have been listed on the Vienna Stock Exchange since 1869 and currently have a free float of 100%.
Rise, Fall, and Rebuilding: The Austro-Hungarian Era Through WWII (1869-1950)
Imperial Expansion and Collapse
In the following 100 years after the IPO on the stock exchange wienerberger was the market leader in Austria. But this Austrian dominance obscured a much larger empire.
Into the new century, the company continued expanding, adding plants beyond Austria and into such regions as Czechoslovakia, Croatia, and Hungary. Yet with the end of World War I and the collapse of the Austro-Hungarian Empire, Wienerberger lost most of its foreign operations.
The Treaty of Versailles and subsequent breakup of the Habsburg realm meant that factories that had been part of a single imperial economy suddenly sat in foreign countries, behind new borders and tariff walls. Overnight, Wienerberger went from a continental powerhouse to a landlocked Austrian company.
Interwar Innovation
The company rebuilt around its core Austrian holdings, especially its huge Wienerbergstrasse factory. Rather than attempting to reconquer lost territory, Wienerberger focused on innovation within its diminished domain.
The company began using mechanical presses for brick production around the 1920s, allowing them to produce perforated bricks. This seemingly simple innovation—using mechanical presses rather than hand-molding—represented a quantum leap in productivity and opened entirely new product categories. Perforated bricks offered better thermal insulation and were lighter, easier to transport, and more economical to produce.
Destruction and Reconstruction
The company rebuilt around its core Austrian holdings, especially its huge Wienerbergstrasse factory. This facility was bombed during World War II, however, resulting in the deaths of many company employees as well as the destruction of much of its manufacturing plant.
The post-war period brought Marshall Plan funds to Austria and an urgent need to rebuild. Advanced tunnel kilns were adopted starting in the 1950s, leading to increased manufacturing efficiency. Tunnel kilns represented another technological leap—bricks moved through a long tunnel on carts, passing through progressively hotter zones, allowing for continuous operation at scale that dwarfed even the Hoffmann ring kilns of a century earlier.
By the mid-20th century, Wienerberger had rebuilt itself as Austria's dominant brick producer, technologically advanced but geographically constrained to a small Alpine nation. The question that would define the company's next chapter: How could a regional champion become a global player?
The Internationalization Era: From Austrian Champion to Global Acquirer (1987-2007)
The Strategic Pivot
The end of the 1980s saw the beginning of a new chapter in the history of wienerberger: internationalisation. Following the takeover of the German Oltmanns Group, the company expanded into Eastern Europe, UK, France, Belgium, Luxembourg and the Netherlands in the 1990s.
The context was crucial. The fall of the Berlin Wall in 1989 opened Eastern European markets that had been closed for decades. EU integration was creating a unified construction market across Western Europe. And Wienerberger's management recognized that the company's technological advantages and operational know-how could be deployed far beyond Austria's borders.
A significant point in the group's development came in 1986, when Wienerberger acquired Germany's Oltmanns-Gruppe. With that purchase, Wienerberger became a major player in the European brick market, with more than 200 factories.
The Oltmanns acquisition established the template for Wienerberger's expansion strategy: acquire established regional players, integrate them into a shared operational framework, and leverage the combined scale for purchasing power and knowledge transfer.
Diversification into Adjacent Businesses
This exciting period in the company history saw the establishment of the Pipelife joint venture for the plastic pipe business area, the expansion of the ceramic pipe business, the development of the facing brick business and the entry into the concrete brick market.
They purchased Bramac, a concrete roof tile manufacturer, in 1973. This early acquisition planted the seed for what would become Wienerberger's second major business pillar: roofing systems.
Meanwhile, Wienerberger had been diversifying its operations, expanding into such areas as the manufacturing of clay pipe. The company's interests in piping were expanded in 1989 with the launch of its Pipelife joint venture. That year, Wienerberger also entered the metallurgy and abrasives market with the purchase of a stake in Treibacher Chemische Werke.
The Pipelife joint venture with Belgian chemical giant Solvay would prove particularly prescient—though it would take two decades for the strategic logic to fully play out.
Going Global: The General Shale Acquisition
Starting with its purchase of Germany's Oltmanns-Gruppe company in 1987, Wienerberger expanded into other regions of Europe and entered the plastic pipe business. In 1999 the company acquired General Shale in the United States and became the world's leading manufacturer of bricks.
The General Shale acquisition was transformative. General Shale, Inc. is an American manufacturer of bricks, masonry, pipes and architectural building products. The company was formed by a merger of the Kingsport Brick Corporation and Johnson City Shale Brick Corporation on September 1, 1928.
In 1999, the company joined Wienerberger AG of Vienna, Austria, the world's largest brick manufacturer. This gave Wienerberger a beachhead in the world's largest construction market and cemented its position as the undisputed global leader in brick production.
Building the Roofing Platform
In the mid-2000s, Wienerberger added a second core operation, roofing systems, in order to balance out its bricks business. To this end, the company acquired Belgium's Koramic, the leading roofing systems company in Europe, in 2004.
In 2004, the company spent some EUR 540 million on acquisitions and further expansion, including the Koramic purchase and several new acquisitions in the United States, as well as a number of investments deepening the group's presence in Central and Eastern Europe.
The Koramic acquisition was strategic diversification made concrete. Roofing tiles shared similar raw materials and manufacturing processes with bricks, yet served a different market cycle. When new construction slowed, roofing renovation continued—a countercyclical hedge that would prove invaluable.
The Pre-Crisis Peak
Wienerberger has a manufacturing presence in nearly 25 countries, with a total of some 235 plants under operation in 2005. The company has been engaged on an active expansion program. In 2004 alone the company spent approximately EUR 540 million on investments and has announced plans to spend at least EUR 250 million in 2005.
Wienerberger's transformation from a primarily domestic company to global player had been dramatic. By 2005, international operations accounted for 97 percent of the group's total revenues.
From an Austrian brick factory to a globe-spanning building materials empire in less than two decades—it was a spectacular achievement. But by 2007, Wienerberger had also accumulated substantial debt, maximized its exposure to cyclical new residential construction, and positioned itself at peak vulnerability just as the world's financial system prepared to implode.
INFLECTION POINT #1: The 2008-2009 Financial Crisis & Near-Death Experience
The Brutal Impact
The financial crisis and the negative development of the world economy adversely affected the 2008 full year results of Wienerberger AG.
The numbers were devastating. Group revenues declined by 2% only to € 2,430.1 million, but operating EBITDA before restructuring costs fell 20% to € 440.1 million. Operating EBIT before restructuring costs decreased 32% to € 239.8 million.
But the headline numbers understated the regional carnage:
"The development of business in North America was much weaker than expected (EBITDA: -57%). A disappointing new residential construction market in Germany and rising pressure on prices in Italy continued to have a negative effect on Central-West Europe (EBITDA: -44%). Further declines in Great Britain which have negatively influenced North-West Europe (-22% EBITDA)."
Wienerberger has just completed one of the worst stock market years in its history with a decline of roughly 70% in 2008. As a result of the drop in earnings, earnings per share fell from € 3.46 in 2007 to € 0.81.
Crisis Management Mode
Measures to adjust capacity implemented: 27 plants closed and 11 production lines temporarily shut down.
Wienerberger employees were affected by these programs, more than 1,000 alone in the USA. The related costs amounted to € 55.0 million, including € 33.5 million of cash out and € 21.5 million of special write-downs.
The crisis forced a fundamental strategic reset. Cash flows were invested primarily in growth projects during times of economic growth, but Wienerberger has now shifted its strategic focus to the protection of liquidity in an increasingly difficult market environment.
Our goal is to maintain this sound foundation. Even if the economic environment remains difficult, we expect to reduce our current net debt of € 890 million by a further € 100 million in 2009 and annually over the coming years.
The Leadership Transition
In the depths of the crisis, Wienerberger made a leadership change that would define its next era. Heimo Scheuch studied in Vienna and Paris, earning multiple degrees in law and economics. He began his career in corporate finance and has been with wienerberger since 1996. As CEO since August 1, 2009, he has been responsible for the strategic and operational development of the company.
Scheuch was an insider who had witnessed both the acquisition spree and its aftermath. Heimo Scheuch is a truly international manager, having studied and worked in various countries. He obtained several university degrees in law and economics and began his professional career in corporate finance.
Following on from the global economic crisis, wienerberger set out a new course of action in 2009. The crisis had proven that the old playbook—aggressive acquisition-led growth, heavy debt, concentrated exposure to cyclical new construction—had failed catastrophically. A new strategy was required.
The crisis created the conditions for transformation. The old leadership's credibility was shattered. The need for change was undeniable. And a new CEO had the mandate to fundamentally reimagine what Wienerberger could become.
INFLECTION POINT #2: The Pipelife Full Acquisition (2012)—Diversification Beyond Bricks
The Strategic Logic
In 2012, Wienerberger made a move that seemed counterintuitive to traditionalists: it went all-in on plastic pipes.
Wienerberger takes full ownership of the plastic pipe maker. Wienerberger is to take full ownership of plastic pipe producer Pipelife by purchasing the 50% stake owned by Solvay. Solvay said it will receive EUR 172m for the shares, including a EUR 10m special dividend. The deal represents an enterprise value of EUR 257m for the 50% stake, taking liabilities into account.
Wienerberger, which is the world's largest brick producer, said the acquisition will reduce its dependency on cyclical new residential construction from nearly 70% to 60% of revenues and open opportunities for growth in new markets. Pipelife reported an EBITDA of EUR 69m and revenues of EUR 805m in 2011, with more than half the revenues generated in the Nordic countries, Benelux, France and Austria.
Financial Discipline in the Deal
The deal structure demonstrated the new strategic discipline that would characterize Scheuch's tenure:
After settlement of the purchase price and the consolidation of Pipelife, debt repayment period should be less than 2.5 years at the end of 2012. The purchase price for this 50% stake totals 162 million Euro and will be paid from existing cash flow and available credit lines.
70 million Euro per year - Takeover represents milestone in the strategy to expand the core business - Financial discipline and strong balance sheet structure remain top priority - Pipelife will be fully consolidated as of June 1, 2012.
For €162 million, Wienerberger gained €800 million in additional revenues and €70 million in EBITDA—an acquisition multiple that would look extremely attractive in hindsight.
The Infrastructure Thesis
The new pipe systems business will also create interesting opportunities for future growth. After the integration of Pipelife, plans call for a focus on the active development of business in the areas of building and electro installations. The necessary renovation of supply lines in Western Europe and the pent-up demand for these networks in Eastern Europe will form the key drivers for further growth in the Pipe Systems Segment over the medium- and long-term.
Pipelife was founded in 1989 as a joint venture of Solvay (Belgium) and Wienerberger (Austria) with activities in Austria, France and Germany. Since 2012, Pipelife is fully owned by Wienerberger. With our headquarters based in Vienna, Austria, in the Wienerberger House, we are actively present in 24 countries with over 3,247 employees, and exporting our solutions to countries around the world.
The Pipelife acquisition represented Scheuch's core strategic insight: the construction value chain contained multiple businesses with different cyclical exposures. New residential construction was highly cyclical, but infrastructure—water systems, sewer networks, energy distribution—followed different patterns driven by public investment, regulatory requirements, and maintenance cycles.
The transaction will reportedly increase Wienerberger's revenues by approximately €800 million, or roughly one-third. In addition, the full takeover is expected to reduce Wienerberger's dependency on cyclical new residential construction from nearly 70% to 60% of revenues.
INFLECTION POINT #3: The Scheuch Transformation—From Products to Solutions (2009-2024)
The Strategic Vision
Leveraging his international experience and strong focus on sustainability, digitization, and innovation, he has successfully transformed wienerberger and more than tripled its revenue. At the same time, he has positioned the company as a leading provider of innovative, ecological solutions for the entire building envelope in new construction and renovation, as well as piping solutions for infrastructure in water and energy management.
The transformation from "brick manufacturer" to "building solutions provider" was not mere marketing speak. It represented a fundamental reimagining of Wienerberger's business model:
From: Selling commodity products (bricks, tiles, pipes) to builders and distributors
To: Providing integrated solutions for construction problems—energy efficiency, water management, building envelope performance—that combined multiple products with design services, installation support, and digital tools.
The Four Strategic Pillars
Higher earnings through Operational Excellence: We implement efficiency-enhancing measures along our entire value chain, from procurement and production to sales and administration. Through our self-help program, we consistently improve performance, building a strong foundation for long term operational excellence. In 2024, these efforts resulted in € 41 million in savings, demonstrating our commitment to continuous efficiency improvements.
Improved efficiency: € 100 mn EBITDA contribution in 2024 – 2026. External Growth through M&A: Given our low gearing and our strong cash flow generation, we are well-equipped to grow through acquisitions and are evaluating a highly attractive deal pipeline.
Innovation and Product Mix Shift
Today, the company generates 33% of its revenue from innovative products, with a goal of reaching 35% by 2026.
One major step was the launch of Wioniq, bringing together four innovative companies – Inter Act, I-Real, Wideco, and Slatek – and creating a new platform for smart water and energy management solutions, which offers significant growth potential.
The shift toward "innovative products"—defined as products launched in the past five years that offer differentiated performance characteristics—represented Wienerberger's escape from pure commodity competition. A standard clay brick faces brutal price competition; an insulating clay block system with integrated vapor barriers and installation guides commands premium pricing.
As a leading provider of smart solutions, wienerberger drives organic growth through innovation and digitalization. By continuously enhancing our portfolio of products and solutions, we deliver greater value to our customers while strengthening the company's overall value creation. In 2024, the share of innovative products reached 33%, reflecting our strong focus on continuous innovation and value-added solutions.
Building the Diversified Business Model
Diversified and Resilient Business Model: Our strategic focus spans new build, renovation, and infrastructure projects, enabling us to effectively navigate and balance varying business cycles across our diverse markets.
Our piping operations continued to grow and gained market shares in the infrastructure segment for water and energy management. By upgrading our plant network and adding new system solutions, the piping division contributed significantly to the overall performance of the group and represents the biggest unit within the wienerberger group at 30% of 2024 revenues.
By 2024, the piping division—born from the 2012 Pipelife acquisition—had grown to become Wienerberger's largest single business unit, accounting for 30% of group revenues. This represented a complete inversion of the company's historic structure, where bricks had dominated everything.
INFLECTION POINT #4: The Terreal Acquisition (2024)—Becoming the European Renovation Leader
The Largest Deal in Company History
Vienna – wienerberger, one of the world's leading providers of innovative and ecological solutions for the entire building envelope in new build and renovation, as well as infrastructure for water and energy management, communicates the successful closing of the largest acquisition in the company's history. With all conditions imposed as a prerequisite for the approval of the transaction duly fulfilled, the takeover of Terreal's business in France, Italy, Spain, and the USA, as well as Creaton in Germany, was successfully closed.
The €600 million deal also includes the German and Benelux businesses of Creaton, a company acquired by Terreal in 2020, while the production facilities in Austria, Poland and Hungary will continue to be owned by the current shareholders.
wienerberger expects the acquisition to generate additional annual revenues of approximately € 725 million. The combined pitched-roof business is projected to add up to a total roof surface of about 75 million square meters covered per year.
In March 2024 wienerberger acquired substantial parts of Terreal and thus 28 production plants and approximately 3,000 employees.
The Renovation Megatrend
"The renovation and refurbishment of the European building stock is an essential step on the path toward climate neutrality and an important contribution to the creation of sustainable and affordable housing. With the acquisition of Terreal, wienerberger positions itself as the European pitched-roof expert capable of integrating solar, rainwater, and additional solutions, including accessories and insulation material." As the European pitched-roof expert, wienerberger is now in a position to offer even more comprehensive roofing solutions. This will be decisive for achieving the targets of the European Green Deal, as old roofs account for roughly 30% of energy losses in buildings.
Today, an alarming percentage of around 40% of Europe's building stock requires urgent attention, necessitating renovations and retrofits to align with modern energy efficiency standards.
The Terreal acquisition positioned Wienerberger at the center of a multi-decade megatrend: the renovation of Europe's aging building stock. The European Green Deal mandates dramatic reductions in building emissions, and the path to those reductions runs through roofs, walls, and heating systems.
Integration Success
Europe West: In 2024, external revenues amounted to € 2.5 billion (2023: € 2.2 billion) and operating EBITDA came to € 350 million (2023: € 378 million). The results include the ten months of strong contributions from the Terreal Group.
Especially the integration of Terreal – which advanced ahead of schedule – delivered a positive contribution to overall profitability as it expanded wienerberger's activities in the growing renovation sector.
The Terreal acquisition also brought Ludowici, the historic American roofing tile manufacturer. In its largest acquisition ever, Wienberger AG adds Terreal roof repair and renovation product businesses in France, Germany, Italy and Spain, along with a North American satellite whose principal brand, Ludowici, dates to 1888. Ludowici produces terra cotta tile and architectural elements at a New Lexington, Ohio operation located amid premium clay deposits.
Solar Integration
With this next step in wienerberger's value-accretive growth strategy, the company builds on its 2024 acquisition of Terreal – a leading European provider of roof solutions dedicated to the renovation market – further strengthening its position as Europe's top expert for pitched roofs, combining innovative roofing and solar solutions. In-roof solutions hold significant growth potential in both new build and renovation markets and are expected to increasingly gain market share from on-roof solutions. With this acquisition, wienerberger enhances its position as a key player in the market, enabling it to take a pivotal role and become a full energy solution provider.
The combination of Terreal's roofing products, GSE Integration's solar mounting systems, and Pipelife's water management capabilities creates the potential for a truly integrated building envelope offering—roofs that protect, generate electricity, and harvest rainwater.
The ESG & Sustainability Transformation
Climate Neutrality Commitment
In addition, we reaffirm our commitment to our sustainability goals, including climate neutrality by 2050 as outlined in the European Green Deal.
Wienerberger operates in one of the most carbon-intensive industries in the world. Brick production requires heating clay to approximately 1,000°C, traditionally using natural gas or coal. The company has committed to achieving climate neutrality across its operations by 2050, but more importantly, has established intermediate targets and invested in breakthrough technologies.
The Uttendorf Breakthrough
wienerberger opens modernized brick plant in Uttendorf (AT) with the world's largest electric industrial kiln. The demo site sets new standards and enables the most sustainable brick production within wienerberger. Electricity from ecological sources such as own PV plant reduces production emissions by around 90%.
Vienna, November 29, 2024 – As part of its sustainability strategy, wienerberger opened its modernized brick plant in Uttendorf, Austria, on November 28th. With the world's largest industrial electric kiln, the plant sets new standards for sustainable brick production. By running on green electricity – for example from the plant's own PV system – wienerberger is reducing emissions for brick production by around 90% and overall energy consumption by a third.
According to wienerberger, the company has invested a total of € 30 million in the development of the new electric kiln. The test operation in Uttendorf is currently running with a production capacity of 270 tons per day.
The Uttendorf plant represents a proof of concept that could eventually be deployed across Wienerberger's global manufacturing footprint. What's more, in the future, other locations will also benefit from the expertise gained and the technologies developed as wienerberger drives brick production toward climate neutrality.
The Business Case for Sustainability
"We have a responsibility to ensure a future worth living for coming generations. The construction sector plays a key role in this, as buildings account for a third of energy consumption and almost 40% of CO2 emissions worldwide."
By 2026, the company will reduce its emissions in production by 25% and increase the proportion of recyclable or reusable products sold to over 90%. In addition, 75% of total sales will be generated from building products for the construction of net-zero buildings with a neutral carbon footprint by then.
Current Financial Performance & Market Position
2024 Results: Resilience Demonstrated
Vienna – In 2024, wienerberger achieved the third-best result in its history, despite a challenging market environment, particularly in the new build sector. The company increased total revenues by 6% to €4.5 billion while maintaining a robust group-level operating EBITDA margin of 17%. These results are based on disciplined cost management and operational efficiency and also confirm the resilience of wienerberger's long-term value-creating growth strategy with its targeted acquisitions.
Most construction markets globally did not recover as quickly as anticipated in 2024. Interest rates went down slower than expected, construction costs remained high and political uncertainties further decreased investment. However, in 2024 wienerberger adhered to its value-creating growth strategy and remained focused on organic growth through innovation.
Geographic Diversification
Net sales break down by family of products as follows: - walls, facades, ceilings and roofing (67.3%); pipes (30%); other (2.7%). At the end of 2024, the group operated 241 production sites worldwide. Net sales are distributed geographically as follows: Western Europe (56.4%), Eastern Europe (25.9%) and North America (17.7%).
Capital Returns to Shareholders
The Executive Board will propose a dividend of € 0.95 per share to the Annual General Meeting, which represents an increase of approximately 5.6% compared to the 2023 dividend per share of € 0.90. Share buybacks remain a key component of the capital allocation strategy, which, together with an attractive dividend policy, offers an improved shareholder return. At the beginning of 2025, wienerberger successfully completed its latest share buyback program.
With a market capitalization of € 2,992 million and a weighting of 5.2% in the ATX at the end of 2024, wienerberger is one of the six largest listed companies in Austria. Wienerberger AG is listed on the prime market with 109.5 million bearer shares.
2025 Outlook
Under the assumptions that (i) our relevant end markets show a stable development throughout 2025 and (ii) interest rates will be cut further by the respective central banks throughout 2025 in line with current market expectations, wienerberger should achieve an operating EBITDA of approximately € 800 million.
wienerberger reports a solid performance in H1 2025, demonstrating its resilience and ability to adapt to challenging conditions in core end markets. While macroeconomic headwinds, high interest rates, and weak new build activity continue to weigh heavily on the construction sector, wienerberger again confirms the strength of its diversified business model. In particular, the Group's piping, roofing, and infrastructure solutions businesses showed a more positive development and helped offset the weaker performance in the new build market.
Competitive Position & Strategic Analysis
Market Leadership Positions
We are #1 in brick production worldwide and in clay roof tile production in Europe, with over 200 production sites in 28 countries. Additionally, we are the leading providers of pipe systems and surface pavings in Europe.
Market Leadership and Strong Brands: With a robust presence in almost 30 countries, wienerberger holds leading market positions across Europe and North America. Our portfolio of strong brands and experienced local management teams positions us as a trusted partner, fostering close relationships with key decision-makers.
Competitive Landscape
Top 7 concrete block and brick manufacturers are Wienerberger AG, Midland Concrete Products, CRH plc, Monaprecast, Acme Brick, Midwest Block and Bricks, and Boral.
CRH was established in 1970 and is headquartered in Dublin, Ireland. As one of the leading global manufacturers of building materials, CRH operates in 32 countries and is committed to manufacturing high-quality products used in construction projects worldwide.
Wienerberger's competitive position rests on several sources of advantage:
Scale Economies: With over 200 production sites globally, Wienerberger achieves purchasing power in raw materials and equipment that smaller competitors cannot match. The capital-intensive nature of brick and tile production creates meaningful barriers to entry.
Geographic Density: In key European markets, Wienerberger's dense plant network allows it to serve customers from nearby facilities, reducing transportation costs that are significant for heavy, low-value-density products like bricks.
Vertical Integration: Control over clay deposits, manufacturing, and distribution creates a more defensible value chain than competitors who rely on third-party suppliers.
Brand Portfolio: The company's collection of regional brands—Terca, Porotherm, Koramic, Sandtoft, General Shale—commands local loyalty while benefiting from corporate scale.
Porter's Five Forces Analysis
Threat of New Entrants: LOW The brick industry requires substantial capital investment, long-term access to clay deposits, and local market knowledge. Regulatory requirements around mining and manufacturing add further barriers. The industry has consolidated significantly, making greenfield entry economically challenging.
Bargaining Power of Suppliers: MODERATE Clay is abundant, but specific deposits with appropriate characteristics are limited. Energy represents a significant cost component, and Wienerberger has limited power to negotiate natural gas and electricity prices. However, scale allows favorable equipment purchasing terms.
Bargaining Power of Buyers: MODERATE Large homebuilders and construction companies can negotiate volume discounts, but the fragmented nature of the building industry—with many small contractors—limits buyer concentration. Brand loyalty among architects and specifiers provides some pricing power.
Threat of Substitutes: MODERATE TO HIGH Concrete blocks, steel framing, timber construction, and prefabricated panels all compete with brick in various applications. However, brick's durability, thermal mass, aesthetic appeal, and cultural preference in key European markets provide resilience. The key risk is timber frame construction gaining share in markets like the UK and Germany.
Competitive Rivalry: MODERATE The global brick industry has consolidated around a few major players, with Wienerberger as the clear leader. Competition remains intense at the regional level, but the industry has generally avoided destructive price wars. The cyclical nature of construction creates periodic overcapacity, but rational capacity management has improved.
Hamilton Helmer's 7 Powers Framework
Scale Economies: Wienerberger's 200+ production sites create meaningful cost advantages in purchasing, R&D allocation, and administrative overhead spreading.
Network Effects: Limited. This is fundamentally a physical products business without significant network effects.
Counter-Positioning: The strategic pivot to solutions provider represents counter-positioning against commodity-focused competitors. Smaller players cannot easily replicate Wienerberger's integrated approach spanning walls, roofs, and pipes.
Switching Costs: Moderate. Architects who specify Wienerberger products become familiar with the company's technical documentation, BIM models, and support systems. Builders develop installation expertise with specific products.
Branding: Strong in professional markets. Brands like Terca and Porotherm carry significant meaning among architects and contractors.
Cornered Resource: Access to premium clay deposits in key locations provides some resource advantage. The Uttendorf electric kiln technology could become a cornered resource if successfully scaled.
Process Power: The Scheuch-era transformation has created process advantages in operational efficiency, M&A execution, and sustainability innovation that competitors struggle to replicate.
Bull Case vs. Bear Case
The Bull Case
1. Renovation Megatrend Tailwind Today, an alarming percentage of around 40% of Europe's building stock requires urgent attention, necessitating renovations and retrofits to align with modern energy efficiency standards. The European Green Deal mandates building renovation at unprecedented scale. Wienerberger's integrated roofing-and-solar offerings position it perfectly for this multi-decade spending wave.
2. Countercyclical Diversification Complete The strategic transformation has created a genuinely diversified business. Infrastructure spending, renovation activity, and new construction operate on different cycles. The 2024 results—near-record performance despite weak new-build markets—demonstrate this resilience.
3. Sustainability Leadership Creates Pricing Power The Uttendorf breakthrough demonstrates that decarbonized brick production is technically achievable. As EU carbon pricing tightens, Wienerberger's first-mover advantage in green manufacturing could translate to both regulatory compliance and premium pricing for sustainability-conscious buyers.
4. Attractive Valuation The Wienerberger AG PE ratio based on its reported earnings over the past 12 months is 11.34. Trading at roughly 11x trailing earnings for a market leader with demonstrated operational excellence and favorable long-term trends represents potential value.
5. Capital Allocation Excellence The Scheuch era has demonstrated disciplined M&A (Pipelife at 2.3x revenue; Terreal with immediate EBITDA contribution), consistent dividend growth, and share buybacks when appropriate. This track record suggests continued intelligent capital deployment.
The Bear Case
1. Construction Cyclicality Persists Despite diversification, Wienerberger remains fundamentally exposed to construction activity. Prolonged high interest rates, demographic headwinds in key European markets, and potential economic recession could create extended weakness.
2. New-Build Secular Decline European demographics—aging populations, household formation slowdown—may represent structural headwinds for new residential construction. While renovation provides offset, the highest-margin products historically have been linked to new construction.
3. Alternative Materials Threat Timber frame construction, cross-laminated timber (CLT), and prefabricated building systems are gaining share in several European markets. If these alternatives achieve cost parity and cultural acceptance, traditional clay products could face secular decline.
4. Decarbonization Costs The €30 million Uttendorf investment covered a single plant. Rolling out similar technology across 200+ facilities would require billions in capital expenditure over decades. "'You do everything right on the CO2 track, but the businessman turns away in horror'." Green electricity costs remain elevated, potentially squeezing margins.
5. Integration Risk Terreal was Wienerberger's largest-ever acquisition. While early integration progress appears positive, large acquisitions carry execution risk, cultural integration challenges, and potential hidden liabilities.
Key Metrics for Investors
For investors monitoring Wienerberger's ongoing performance, three KPIs merit particular attention:
1. Renovation/Infrastructure Revenue Share (Currently ~50%+)
The strategic thesis depends on renovation and infrastructure providing countercyclical stability. Track the percentage of revenues from these segments versus new-build residential. Rising share indicates successful strategic execution; declining share suggests the transformation may be stalling.
2. Innovative Products as % of Revenue (Currently 33%, Target 35% by 2026)
This metric captures Wienerberger's escape from pure commodity competition. Higher innovative product share correlates with better pricing power and margin resilience. Monitor quarterly disclosures for progress toward the 35% target.
3. Operating EBITDA Margin (Currently ~17%)
Margin preservation in weak volume environments demonstrates operational excellence. The company's "self-help" programs target €100 million in EBITDA contribution from efficiency over 2024-2026. Declining margins despite these programs would signal competitive pressure or cost inflation outpacing price increases.
Myth vs. Reality: Correcting Consensus Narratives
MYTH: Wienerberger is a "boring brick company" REALITY: The company has fundamentally transformed. Piping is now the largest segment; roofing-and-solar is the fastest-growing platform; innovative products generate one-third of revenue. This is a diversified building solutions provider that happens to have started with bricks.
MYTH: European construction is structurally declining REALITY: New residential construction faces headwinds, but renovation represents a multi-decade growth opportunity. The European building stock requires €3+ trillion in upgrades to meet climate targets. Wienerberger is positioned at the center of this spending wave.
MYTH: Brick is a dying product category REALITY: Brick construction has proven remarkably persistent. Its thermal mass properties, durability (100+ year lifespan), aesthetic appeal, and circular economy potential (crushed brick can be recycled) provide genuine advantages over alternatives. The Uttendorf breakthrough suggests even carbon concerns can be addressed.
Legal and Regulatory Considerations
Antitrust: Building materials markets face periodic antitrust scrutiny. The company recorded also a one-off provision of € 10 million for a fine imposed by the German antitrust authority for alleged agreements in violation of competition law and against which Wienerberger has filed an appeal. This 2008 issue was resolved, but industry-wide price coordination risks remain a regulatory concern.
Environmental Regulations: The EU Emissions Trading System (ETS) and national carbon regulations create both compliance costs and potential advantages for leaders like Wienerberger who are investing in decarbonization. Rising carbon prices would increase production costs but also create competitive moats against less-prepared competitors.
Building Codes: Tightening energy efficiency requirements in building codes across Europe drive demand for Wienerberger's insulating products and renovation solutions. However, potential shifts toward timber-friendly building codes could create headwinds.
Final Assessment
Wienerberger represents a fascinating case study in corporate transformation. The company that nearly collapsed in 2008-2009 has reinvented itself as a diversified building solutions provider positioned for the megatrends of climate transition, infrastructure renewal, and housing renovation.
"Heimo Scheuch has successfully driven the strategic transformation of the company into a provider of innovative integrated solutions. Recently, he has taken decisive steps into growth markets, particularly in the areas of renovation, refurbishment, and energy and water management."
The Scheuch-era transformation—from commodity-focused brick manufacturer to integrated solutions provider—represents intelligent adaptation to structural industry change. The Pipelife acquisition reduced cyclicality; the Terreal acquisition positioned the company for renovation; the Uttendorf investment demonstrates commitment to decarbonization.
"Today, wienerberger is more resilient, innovative, and efficient than ever. As part of our strategy, we are committed to driving the transition towards climate neutrality – creating long-term opportunities for future generations."
For long-term investors, Wienerberger offers exposure to durable secular trends—climate-driven building renovation, infrastructure modernization, and sustainable construction—through a management team with a demonstrated track record of strategic execution and operational discipline. The key risks center on construction cyclicality, alternative materials competition, and decarbonization investment requirements.
The 205-year journey from Alois Miesbach's clay pits to Heimo Scheuch's integrated solutions provider demonstrates something essential about enduring businesses: they survive not by defending the past but by continuously reinventing themselves for the future. Whether Wienerberger's current transformation proves as durable as its bricks remains to be seen—but the strategic logic is sound, and the execution to date has been impressive.
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