Davy Morning Equity Briefing

Aug 04, 2026

AG Barr

H1-27 trading update

AG Barr is expected to deliver revenue growth of c.8% in H1-27 (VA consensus: c.12%), primarily supported by the contribution from recent acquisitions, with core volume growth impacted by stock availability issues in Q2. Despite this, the H1 adjusted operating profit margin is expected to be in the middle of the guidance range (range:14-16%, VA consensus: 14.8%). While the supply constraints impacting Q2 are still being resolved, market share gains, encouraging innovation performance and supply chain actions give confidence in an improved H2 revenue performance and full-year double-digit percentage growth (VA: +12%), with integration and insourcing benefits underpinning a strengthening H2 margin and delivery of full-year profit expectations. At first look, we envisage limited changes to our profit forecasts.

Travis Perkins plc

Encouragement in signs of profit stabilisation

Travis Perkins has announced that it has initiated discussions regarding the sale of Toolstation Benelux. While unsurprising, the clarity is welcome and an unhelpful drag on operating profit would be removed. Interim results also confirm that trading conditions in the UK remain challenging, and this is expected to remain the case over the rest of the year. That said, the underlying operating profit result for the half was broadly in line with expectations and similar to the H1 2025 result. Evidence of stability, albeit at a low level, is encouraging and outlook comments suggests changes to current year underlying operating profit estimates may be limited.

Volution

Acquires getAir for €40m to extend European offering

Volution continues to extend its operating footprint via M&A. The acquisition of getAir will add a complementary residential heat recovery business to the group’s European portfolio. The deal is expected to be immediately earnings accretive and will therefore help sustain the group’s already impressive operating and earnings momentum.

Mincon Group

Broad-based growth in H1 drives c.4% beat

H1 results at Mincon are comfortably (4% at an EBITDA level) ahead of estimates on an underlying basis, with a one-off gain adding an additional €2.6m to profit. Growth has been seen across the company’s sectors, and the business is well placed for the remainder of 2026.

Lufthansa

Now expecting adjusted EBIT of €1.7-2.2bn

The Lufthansa Group now expects an adjusted EBIT of €1.7- 2.2bn for fiscal year 2026. The upper end of the range continues to represent a result significantly above the prior year and thus remains in line with the previous earnings ambition (consensus €1,864m; 2025 €1,960m

Hostelworld

Forecast update

We are updating our Hostelworld forecasts to reflect the recent interim results. The company flagged a c.3% impact to booking volumes as a result of the conflict in the Middle East. However, transaction values were strong owing to its Elevate tool, which boosted its commission rates, alongside a favourable geo-mix. For the full year, we now expect a similar revenue mix. Although we reduce our EBITDA and EPS forecasts, growth remains attractive and our valuation methodology suggests c.30% upside. Consistent delivery will be the key catalyst from here.