DAVY VIEW

Kingspan’s trading update is encouraging and reassuring. Full year trading profit guidance has been reiterated, and therefore the group remains firmly on track to record a 16th consecutive year of operating profit growth. The group’s order backlog is also up significantly (over 8% higher on a weighted basis compared to a year ago). Comments from Kingspan are also constructive and suggest further trading profit growth can be delivered in 2026, even with flat markets. In this context, we may look to push our trading profit forecast for next year to circa €1.05bn, circa 2% above the current estimate. This highlights Kingspan’s consistent ability to grow through the cycle. The update and outlook should be well-received and present a good platform to kick-start a well-deserved re-rating.