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Kingspan: Kingspan's Strong FY2025 Performance Sets Stage for Continued Growth

Kingspan reported a robust financial performance for FY2025, with revenue growing 9% to EUR 9.2 billion and EBITDA increasing 9% to EUR 1.22 billion. Trading profit was EUR 955 million, an 8% increase, resulting in EPS of EUR 3.70. The company's strong financial performance was highlighted by Geoff Doherty, who noted that group revenue was up 7% or 9% at constant exchange rates, with EBITDA and trading profit also showing significant growth. The company's ability to generate strong free cash flow of EUR 429 million and reduce debt by EUR 258 million is also noteworthy.

KRX.IR

EUR 85.8

7.72%

A-Score: 4.0/10

Publication date: February 20, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue & EBITDA Growth Revenue rose 9% to €9.2B (9% at constant exchange rates), with EBITDA up 9% to €1.22B.
  • Sustainability Milestone Achieved 70% reduction in Scope 1/2 emissions since 2020, aligning with decarbonization goals.
  • Advances Unit Performance Revenue grew 12%, backlog increased 24%, and order intake doubled in early 2026.
  • US Roofing Ambitions Targets 15% market share (excluding EPDM/bitumen), expecting sales to reach $300M by 2028 with capacity investments.
  • Capital Allocation Strategy €1.2B invested to unlock €2B revenue potential, prioritizing growth over IPO for Advances and retaining buyback flexibility.

Operational Highlights

The insulated panel order bank was up 8% at the end of the year, with intake ahead 8% in the first 6 weeks of 2026. The Advances business unit saw revenue growth of 12%, with a 24% increase in backlog and order intake doubling in the first 6 weeks of 2026. Gene Murtagh discussed the structural growth drivers of the business, including growth and penetration, geographic rollout, and product portfolio expansion, highlighting the company's significant growth in the QuadCore business and expansion into other technologies.

Growth Prospects

David O'Brien noted that despite a challenging macro backdrop, Kingspan has delivered consistent growth, with insulated panel volumes up 14% organically over the past 5-6 years. The company is investing EUR 1.2 billion in projects to unlock EUR 2 billion of revenue potential, with Gene Murtagh stating that the company has entered 2026 with strong backlogs and expects growth of around 10% in earnings, with the rate of growth accelerating beyond that.

Valuation

With a P/E Ratio of 30.29 and EV/EBITDA of 18.83, Kingspan's valuation suggests that the market is pricing in a certain level of growth. The company's ROE of 11.92% and ROIC of 7.23% indicate a relatively healthy return on equity and invested capital. Analysts estimate next year's revenue growth at 8.0%, which is slightly lower than the company's expected growth rate.

US Roofing Market Expansion

The company is planning to enter the US roofing market, which is a huge and growing market, particularly on the commercial side. They expect their capacity additions to be readily absorbed by the market's growth pace, aiming to achieve a 15% share of the addressable market, excluding the EPDM and bitumen markets. The company expects sales in the US roofing market to be around $150-200 million in 2027, building to $300 million in 2028.

Conclusion on Growth Drivers and Financials

Kingspan's exposure to AI is significant, and they expect activity levels to be beyond growth levels experienced in the past. The company is passing through cost inflation to the market and expects to continue doing so, with a focus on allocating capital to both share buybacks and growth opportunities. The company's guidance for 2026 is EUR 1050 million, with EUR 30 million of scope from acquisitions already made, and they remain confident in achieving this guidance despite a challenging macro backdrop.

Kingspan's A-Score