Davy Morning Equity Briefing
Feb 20, 2026
Kingspan Group
Ready for lift off
Kingspan results for 2025 represent yet another year of healthy earnings growth with trading profits a little above what we expected. More importantly, there is an unambiguously upbeat tone to the group’s outlook comments. What is particularly striking is the confidence expressed that the pace of trading profit growth over the remainder of the decade can exceed that achieved in recent years. Despite a stiffening foreign exchange (FX) translational headwind, we expect to leave our current year trading profit forecast unchanged. This points to a double-digit advance in trading profits this year, and we believe the stock at current levels offers excellent value.
Danone
FY25 results – strong finish to the year
Danone’s Q4 like-for-like (LFL) growth of 4.7% (volume/mix: + 2.5%) was modestly ahead of market expectations and supported by continued strength in Specialised Nutrition and EDP. Recurring operating margin of 13.4% was supported by positive operating leverage, enabling continued reinvestment in brands and capabilities. The FY26 outlook calls for expected LFL sales growth of 3-5%, with recurring operating income growing faster than sales – this is in line with current market expectations. At first look, we envisage limited changes to our current forecasts.
Irish economy
Employment growth set to beat most forecasts again in 2026
A weaker pace of survey-measured employment growth during 2025 reverted in line with our forecast for Q4 and more benign signals from monthly administrative payrolls. The unemployment rate has been revised lower to 4.6% in Q4, while the share of employment with third-level education continued to increase. Construction employment also grew strongly, including continued double-digit jobs growth in new housing/other residential building.
