Kingspan lifts H1 profit expectations, shares surge

11th Jul 2023 08:47

(Sharecast News) - Kingspan surged on Tuesday after lifting its expectations for first-half trading profit.

The building insulation company, which is due to report its first-half results on 18 August, now forecasts record trading profit of around €435m, "modestly ahead" of the previous year's €434m. In a trading statement in April, Kingspan had guided to trading profit of "just over €400m".

Kingspan said market and category performances have varied widely, with the Americas overall outpacing European activity. Certain applications are performing strongly, particularly those seeking ultra energy efficiency and lower carbon in categories such as tech and automotive production, it said.

It also said that demand for data applications remains strong, with artificial intelligence projects an emerging feature. The residential sector worldwide is subdued in a higher interest rate environment, although the underlying need for housing appears strong in most markets.

"The group is positioned favourably overall as it enters the third quarter although it is still early days," Kingspan said. "Our development agenda and pipeline is encouraging.

"Kingspan is positioned strongly overall for the medium term and beyond given the global focus on energy efficiency, our high-performance product suite, our distinctive Planet Passionate agenda and ever-growing diversity of our end markets."

At 0850 BST, the shares were up 12% at €64.16.