DAVY VIEW

Kingspan enters the second half of the year with a real sense that the group is picking up momentum at pace. Fresh guidance is for trading profit this year some 7% above the current consensus estimate, which implies a sharp acceleration in H2 growth to around 25% year-on-year. In effect, Kingspan is suggesting it will achieve our 2027 trading profit forecast a year early. Moreover, we are likely to increase our 2027 trading profit forecast by circa 15% to circa €1.3bn. This is a growth rate expectation unmatched in the building products sector, and we are now confident a new era of powerful earnings growth for Kingspan is fully underway. This should prompt a fundamental reappraisal of the investment case with strong justification for a re-rating.