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Kingspan Group PLC
ISEQ:KRX

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Kingspan Group PLC
ISEQ:KRX
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Price: 73.95 EUR -1%
Market Cap: 13.3B EUR

Kingspan Group PLC
Investor Relations

Kingspan Group PLC, an Irish company with global reach, has carved a niche in the building materials industry by transforming the way structures breathe and maintain their climates. Originating in 1965 as a small engineering and contracting business in County Cavan, Kingspan has grown to become a powerhouse in sustainable building solutions. At its core, the company specializes in the manufacturing of high-performance insulation and building envelopes, which include products like insulated panels, rigid insulation boards, and architectural facades. These products are formulated to maximize efficiency, reduce energy consumption, and enhance the environmental footprint of the structures they enclose. The company's strategy capitalizes on the growing demand for energy-efficient and sustainable construction solutions, placing innovation and environmental responsibility at the forefront of its operations.

Kingspan’s business model is rooted in value-added manufacturing, focusing on cutting-edge technology to create products that appeal to an increasingly eco-conscious market. The company's revenue streams are driven by the widespread adoption and integration of its products in commercial, industrial, and residential projects around the globe. By leveraging advancements in material sciences and recommitting to sustainability initiatives, Kingspan taps into a diverse clientele that includes architects, developers, and government bodies committed to green building practices. This positions Kingspan not merely as a supplier, but as an advisor and partner in developing solutions that optimize energy efficiency. In this realm, Kingspan monetizes its offerings through a blend of direct sales, partnerships, and strategic acquisitions that broaden its market reach, ensuring robust growth and a formidable market presence.

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Last Earnings Call
Fiscal Period
Q4 2022
Call Date
Feb 17, 2023
AI Summary
Q4 2022

Revenue Growth: Kingspan reported 2022 revenue of €8.34 billion, up 28% year-on-year, driven heavily by inflation and acquisitions.

Profitability: Trading profit reached €833 million (10% margin), with EPS up 8% to nearly €3.30; however, group margin fell 160 bps from the prior year due to input cost pressures and inventory effects.

Free Cash Flow: Free cash flow was €393 million, a significant improvement from €127 million in 2021, thanks to better working capital management.

Mixed Outlook: Year-to-date underlying sales are flat, with price up about 7% and volume down 7%, reflecting sharp regional and end-market differences.

Cost Pressures: Management expects steel and chemical (MDI) costs to rise in Q2, with selling prices set to increase accordingly after a recent period of cost stabilization.

Sustainability Progress: Kingspan highlighted a 41% reduction in Scope 1 and 2 emissions since 2020 and strong progress on renewable energy and waste reduction targets.

Guidance: Management said they are comfortable with consensus 2023 trading profit of €751 million, implying a 10% decline from 2022.

Key Financials
Revenue
€8.34B
Trading Profit
€833M
Operating Margin
10%
Earnings Per Share
€3.30
Free Cash Flow
€393M
Dividend per share
€0.494
Net Debt
over €1.5B
Net Debt to EBITDA
1.62x
Return on Capital Employed
15.9% (16.5% annualized post-acquisition)
Final Dividend
€0.238
Trading Margin
10%
Insulated Panels Revenue Growth
up 23%
Insulation Business Revenue Growth
up 40%
Insulated Panels Margin
10.6%
Insulation Margin
10%
Roofing & Waterproofing Revenue Run Rate
€500M
Roofing & Waterproofing Trading Margin
5.5%
Light & Air Trading Margin
7.5%
Water & Energy Margin
5.5%
Data & Flooring Margin
12%
Compound Trading Profit Growth
17% since 2018
Organic Free Cash Flow Guidance
€600M before acquisitions expected in 2023
Waste to Landfill Reduction
over 50% reduction in recent years
Scope 1 & 2 Emissions Reduction
41% absolute reduction since 2020
Direct Renewable Energy Use
34% of electricity (7% from own sites)
Earnings Call Recording
Other Earnings Calls

Management

Mr. Gene M. Murtagh
CEO & Executive Director
No Bio Available
Mr. Geoff P. Doherty B.Comm, FCA
Group CFO & Executive Director
No Bio Available
Mr. Russell Shiels B.Bus.Sc.
President of Insulated Panel Business Americas, Data & Flooring Business and Executive Director
No Bio Available
Mr. Gilbert McCarthy
MD of Insulated Panels businesses - UK, Ireland, Western Europe & Australia and Executive Director
No Bio Available
Mr. Lorcan Dowd B.C.L.
Head of Legal & Group Company Secretary
No Bio Available
Pat Freeman
Managing Director of Water & Energy Division
No Bio Available
Mr. Donal Curtin
Managing Director of Roofing & Waterproofing Division
No Bio Available
Mr. Liam McDaniel
Divisional Managing Director of Light, Air & Water
No Bio Available
Mr. Alan Lawlor
Managing Director of Insulation Division
No Bio Available
Ms. Keara Dunne
Group Head of Leadership Development
No Bio Available

Contacts

Address
CAVAN
Kingscourt
Dublin Road,
Contacts
+353429698000.0
www.kingspan.com