Kingspan Group (KRX) H1 2024 earnings summary

Executive summary

• Revenue reached a record €4.2bn in H1 2024, up 2% year-over-year, with trading profit at €422m and EPS down 5% to 165.9c; EBITDA rose 2% to €536m despite challenging markets.

• Free cash flow was €103.6m, down 71% year-over-year, while net debt increased 11% to €1.52bn due to €714m in acquisitions, CapEx, and share buybacks.

• Insulation and Data + Flooring segments saw strong sales growth, while Insulated Panels sales fell 4% but order intake volume increased, indicating positive H2 momentum.

• Major investments included a controlling stake in Steico and entry into the stonewool category, with over 10 new or expanded facilities launched globally.

• Scope 1 and 2 greenhouse gas emissions reduced by 75% since 2020, with significant progress in sustainability initiatives.

Financial highlights

• Trading margin declined 60bps to 10.1%; EBITDA margin stable at 12.9%; effective tax rate at 17.6%.

• Net debt/EBITDA at 1.50x; available liquidity totals €1.48bn–€1.5bn, with €800m undrawn green RCF.

• Acquisitions contributed 7% to sales and €26m to profit; interim dividend maintained at 26.3c per share.

• Working capital efficiency improved to 11.9% of sales from 13.2% year-over-year.

• CapEx guidance for the year increased to €285m.

Outlook and guidance

• Insulated Panel order intake is well ahead of prior year, supporting expectations for stronger H2 and full-year trading profit growth.

• Full-year trading profit guidance is €900m, with sequential improvement in group trading margin and sales volumes expected in H2.

• Margins in Insulation expected to improve as new facilities ramp up and competitive pressures ease.