Kingspan Group (KRX) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached €4.52 billion, up 8% year-over-year, with trading profit up 5% to €443 million and EPS up 4% to 172.1c.

• The business environment remains challenging, but a strong Q2 and resilient performance offset a slow start to the year.

• Acquisitions contributed significantly to sales and profit growth, with €398.2–400 million invested in acquisitions and capex.

• Share buyback of up to €650 million announced over 18–24 months, alongside continued investment in growth and innovation.

• Greenhouse gas emissions reduced by 63% versus 2020, with over 70 new sustainability initiatives launched.

Financial highlights

• Trading margin reported at 9.8%, with like-for-like margin at 10.3%; margin dilution mainly due to Nordic Waterproofing's seasonality.

• Free cash outflow in H1 was €20 million, mainly due to working capital build; working capital outflow of €288 million expected to unwind in H2.

• Net debt at end of June was €1,915.2 million; net debt to EBITDA at 1.74x.

• Interim dividend maintained at 26.3c per share.

• Operating profit up 5% to €417.3 million; EBITDA margin at 12.7% (down 20bps year-over-year).

Outlook and guidance

• Trading environment remains tough but backlog is ahead of last year, supporting a stronger H2.

• Full-year trading profit guidance of around €950 million, a 5% increase over 2024.

• Group trading margin expected to be just above 10% for the year.

• Exchange rate movements may impact H2 earnings translation.

• Sustainability targets include 63% GHG reduction vs. 2020 and 60% renewable energy use by year-end.