DAVY VIEW

Ahead of its US Capital Markets Day (CMD) on November 10th, Kingspan has reported an impressive pick-up in revenue growth in Q3 and has confirmed existing trading profit expectations for this year and next. Management’s confidence in the group’s outlook is supported by a tangibly strong order backlog and pipeline for both divisions. We view the somewhat recent sluggishness in the share price as an excellent opportunity. Kingspan is trading on a 2027 P/E multiple of <16x based on our forecasts. This is well below its long-term average and not consistent with the prospects for a business that will deliver year-on-year earnings growth of 20%+ in H2 2026 and 2027.