Insulation giant Kingspan said it expects more challenges this year but remains “upbeat”, amid growing demand for its products, stemming from the global race to net-zero carbon emissions.
A strong second half of the year saw trading profits at the Dublin-listed group rise by more than expected to a record €907 million in 2024, Kingspan said in full-year results published on Friday, overcoming a slow start to the year.
Trading profits were up 3 per cent last year, down from a growth rate of 5 per cent in 2023 but ahead of the 1 per cent forecast by stockbrokers Davy earlier this month.
Still, the Cavan-headquartered group delivered revenue growth of 6 per cent to €8.6 billion in 2024 while earnings before adjustments and deductibles topped €1.1 billion, up 7 per cent and slightly ahead of forecasts.
This was a “reasonable” outcome, Kingspan said, given the “obvious economic headwinds” in the group’s end markets, particularly in Europe and Australasia.
Chief executive Gene Murtagh said the group saw a “notable bounce” in the second half of the year and finished 2024 with “good momentum”.
“As we look to 2025, our order backlogs are healthy, and our development expenditure has sown the seeds for future growth whilst maintaining almost €2 billion in operational and development headroom,” he said.
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“[This year] will inevitably bring challenges but we remain upbeat for the year ahead supported by structural demand for energy-efficient solutions for the built environment.”
Kingspan’s 2024 results were “commendable and resilient” after an “impressive” end to the year, Davy said in an analyst note on Friday morning.
After a “very active year for investment”, with €900 million spent on 19 acquisitions, the group finished 2024 with net debt of €1.57 billion with net capital expenditure of €334 million.
“Combined, this was around €100 million above our estimate, yet net debt at year-end was modestly lower than what we expected,” Davy said, leaving Kingspan with “ample scope for further investment”.
Kingspan’s Dublin-listed shares, which are up by around 3.4 per cent so far this year, rose in early trading following the publication of its 2024 results.
