Davy Morning Equity Briefing
Oct 15, 2026
Travis Perkins plc
Q3 continues modestly weak trend from H1
The focus for Travis Perkins (TPK) this year is on protecting its gross margin through robust cost/price management. Q3 like-for-like (LFL) revenues were down 1.3% year-on-year (yoy), including a 7.2% yoy decline in volumes, which underlines that market conditions remain challenging. Not surprisingly, given the end-market softness, the stock has struggled to make progress, and we suspect this might remain the case in the near-term.
XPS Group
H1-27 trading update: strong revenue growth, modest guidance upgrade
Strong revenue growth was ahead of expectations, driven by outperformance across both Advisory and Administration. Regulatory change remains a key structural demand driver, particularly around defined benefit pension surplus extraction and risk transfer. Insurance Consulting continues to deliver solid growth while increasing diversification across the group. Combined with disciplined cost management and operating efficiencies, the Board expects full-year results modestly ahead of prior expectations.
Entain
Q3 impacted by sports results; guidance reiterated
Entain’s Q3 growth in its online division was a little softer, with the combination of sporting results and the drag from the Brazil ban impacting growth. Importantly, management reiterated its guidance, and underlying metrics excluding sports results and Brazil look healthy. Key on the conference call will be management’s conviction in achieving the 4-6% growth rate for FY26 ex-Brazil and any commentary on the proposed tax hikes in UK retail.
Kerry Group
US investor event showcases model strength
Kerry’s recent North America-focused investor event conveyed a clear sense of momentum and ambition. Since our previous visit two years ago, confidence in the relevance of the group’s technology capabilities has strengthened. In our view, the two most important themes were the breadth of the renovation opportunity and the increased focus on biotechnology.
Mondi
Energy cost headwinds drive lower-than-expected result
Mondi reported weaker-than-expected adjusted Q3 EBITDA of £196m, driven by higher energy cost inflation. This was 6.2% lower than consensus Visible Alpha consensus.
