DAVY VIEW

Genuit lowered expectations for 2026 in May, and guidance suggesting limited change in adjusted operating profit this year has been reiterated. The group had a challenging first half, characterised by end-markets that remained difficult along with the headache from the onset of input cost inflation. Price increases have been implemented to offset the latter, but the lagged effect is evident in the H1 results. Relative to its long-term average, the stock is not expensive; however, we believe the scope for a re-rating will be limited while operating profits stay range bound.