Kingspan Group plc (KRX.IR) | Investment Case

1. Company Snapshot

1.a. Company Description

Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in the Republic of Ireland, the United Kingdom, rest of Europe, the Americas, and internationally.It operates through five segments: Insulated Panels, Insulation, Light & Air, Water & Energy, and Data & Flooring.The Insulated Panels segment manufactures insulated panels, structural framing, and metal facades components.

The Insulation segment provides rigid insulation boards, technical insulation, and engineered timber systems.The Light & Air segment manufactures daylighting, smoke management, and ventilation systems.The Water & Energy segment provides energy and water solutions, and related services.

The Data & Flooring segment offers data centre storage solutions, as well as raised access floors.It also engages in the trustee and finance businesses.The company was founded in 1965 and is headquartered in Kingscourt, Ireland.

Show Full description

1.b. Last Insights on KRX

Breaking News: Kingspan Group PLC reported a 9% revenue increase for the full year 2025, driven by strategic expansions. Despite facing foreign exchange headwinds and market overcapacity issues, the company demonstrated strong growth. The latest earnings release highlights the company's ability to navigate challenging market conditions. Some analysts recommend a buy, citing the company's growth potential, while others advise a hold, pointing to ongoing market challenges. A few analysts have a sell recommendation, citing concerns over market overcapacity.

1.c. Company Highlights

Last Price	84.9
Change Percentage	-1.05%
Open	85.8
Previous Close	85.8
Market Cap ( Millions)	15355
Volume	67343
Year High	87.7
Year Low	62.6
M A 50	75.21
M A 200	72.04

FCF Yield	3.04%
Dividend Yield	0.60%
ROE	11.58%
Debt / Equity	63.61%
Net Debt / EBIDTA	247.92%
Price To Book	3.41
Price Earnings Ratio	29.74
Price To FCF	32.95
Price To sales	2.21
EV / EBITDA	19.3

2. 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.

Publication Date: Feb -22

                                    📋 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.

3. NewsRoom

Kingspan Group PLC (KGSPF) Full Year 2025 Earnings Call Highlights: Strong Revenue Growth Amid ...

Feb -21

Source:

Breathable Membranes Research Report 2025

Feb -05

Source:

LVMH: Share transactions disclosure

Sep -09

Source:

The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

Sep -09

Source:

Cointreau Launches First-Ever Ready-To-Serve Range – Introducing Cointreau Citrus Spritz

Sep -09

Source:

What Does the Steep 20% Drop Mean for Rémy Cointreau’s 2025 Outlook?

Sep -09

Source:

Société Foncière Lyonnaise (ENXTPA:FLY): Assessing Valuation After a Year of Solid Share Price Gains

Sep -09

Source:

Minor Hotels Europe & Americas (BME:NHH): Exploring Valuation After Steady Share Performance

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.52%)

6. Segments

Insulated Panels

Expected Growth: 5.5%

Kingspan Group plc's Insulated Panels segment growth of 5.5% is driven by increasing demand for energy-efficient buildings, stringent building codes, and rising adoption of off-site construction. Additionally, growing investments in infrastructure development, particularly in emerging markets, and the company's strategic expansion into new regions also contribute to the segment's growth.

Insulation

Expected Growth: 5.8%

Kingspan Group plc's insulation segment growth of 5.8% is driven by increasing demand for energy-efficient buildings, stringent government regulations on energy consumption, and rising adoption of sustainable construction practices. Additionally, the company's strategic acquisitions and expansion into emerging markets have contributed to its growth momentum.

Light, Air and Water

Expected Growth: 5.2%

Kingspan Group plc's 5.2% growth is driven by its Light segment's increasing demand for energy-efficient solutions, Air segment's growth in ventilation systems, and Water segment's expansion in wastewater management. These drivers are fueled by government regulations, increasing environmental awareness, and infrastructure development.

Roofing and Waterproofing

Expected Growth: 5.6%

Kingspan Group plc's Roofing and Waterproofing segment growth of 5.6% is driven by increasing demand for energy-efficient buildings, stringent building regulations, and growing adoption of waterproofing solutions in emerging markets. Additionally, the segment benefits from Kingspan's innovative product offerings, strategic acquisitions, and expanding distribution network.

Data and Flooring

Expected Growth: 5.4%

Kingspan Group plc's Data and Flooring segment growth of 5.4% is driven by increasing demand for energy-efficient and sustainable building solutions, coupled with the company's strategic acquisitions and investments in digitalization, expanding its product offerings and geographic reach.

7. Detailed Products

Insulated Panels

Kingspan's insulated panels are designed for building envelopes, providing thermal insulation, weather-tightness, and fire safety. They are used in walls, roofs, and facades of commercial and industrial buildings.

Insulation Boards

Kingspan's insulation boards are designed for thermal insulation in buildings, providing energy efficiency and reducing carbon emissions. They are used in walls, floors, and roofs of residential and commercial buildings.

Water Storage Solutions

Kingspan's water storage solutions provide rainwater harvesting systems, grey water reuse systems, and potable water storage tanks for commercial and residential applications.

Tanking and Waterproofing

Kingspan's tanking and waterproofing solutions provide protection against water ingress and structural damage in basements, tunnels, and other underground structures.

Daylighting Systems

Kingspan's daylighting systems provide natural lighting solutions for buildings, reducing the need for artificial lighting and improving energy efficiency.

Access Panels and Doors

Kingspan's access panels and doors provide secure and convenient access to hidden services, such as pipes, ducts, and electrical installations, in buildings.

Facade Systems

Kingspan's facade systems provide exterior cladding solutions for buildings, combining aesthetics, weather-tightness, and thermal performance.

8. Kingspan Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Kingspan Group plc operates in the building materials industry, where substitutes are available, but they are not a significant threat. The company's products are highly specialized, and customers are loyal to the brand.

Bargaining Power Of Customers

Kingspan Group plc has a diverse customer base, and no single customer has significant bargaining power. The company's products are essential to the construction industry, and customers rely on Kingspan for their building needs.

Bargaining Power Of Suppliers

Kingspan Group plc relies on a network of suppliers for raw materials, but the company has a strong bargaining position due to its large scale of operations. However, suppliers can still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The building materials industry has high barriers to entry, including significant capital requirements and regulatory hurdles. New entrants would struggle to compete with established players like Kingspan Group plc.

Intensity Of Rivalry

The building materials industry is highly competitive, with several established players competing for market share. Kingspan Group plc faces intense competition from rivals, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	35.72%
Debt Cost	4.24%
Equity Weight	64.28%
Equity Cost	9.07%
WACC	7.35%
Leverage	55.56%

11. Quality Control: Kingspan Group plc passed 6 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Poste Italiane

A-Score: 6.8/10

Value: 4.6

Growth: 4.6

Quality: 4.0

Yield: 8.8

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

BELIMO

A-Score: 5.3/10

Value: 0.0

Growth: 5.4

Quality: 8.2

Yield: 5.6

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

Rockwool

A-Score: 5.0/10

Value: 5.3

Growth: 7.0

Quality: 6.7

Yield: 5.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

Kingspan

A-Score: 4.0/10

Value: 2.6

Growth: 7.6

Quality: 5.3

Yield: 0.6

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

Travis Perkins

A-Score: 3.9/10

Value: 8.0

Growth: 1.3

Quality: 2.6

Yield: 5.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

NIBE Industrier

A-Score: 2.9/10

Value: 3.0

Growth: 5.0

Quality: 4.3

Yield: 1.2

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

9.74%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.35%

Kingspan Group plc - IE0004927939

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on KRX

1.c. Company Highlights

Higher Growth

Lower Yield

Expensive

Fairly Valued

Weak Momentum

Revenues Miss

2. Kingspan's Strong FY2025 Performance Sets Stage for Continued Growth

Operational Highlights

Growth Prospects

Valuation

US Roofing Market Expansion

Conclusion on Growth Drivers and Financials

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.52%)

6. Segments

Insulated Panels

Expected Growth: 5.5%

Insulation

Expected Growth: 5.8%

Light, Air and Water

Expected Growth: 5.2%

Roofing and Waterproofing

Expected Growth: 5.6%

Data and Flooring

Expected Growth: 5.4%

7. Detailed Products

Insulated Panels

Insulation Boards

Water Storage Solutions

Tanking and Waterproofing

Daylighting Systems

Access Panels and Doors

Facade Systems

8. Kingspan Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Kingspan Group plc passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

84.9$

Current Price

84.9$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA