Kingspan sets €1.3 billion trading profit goal for 2027, eyes Advnsys expansion

Kingspan Group's chief executive has set an ambitious organic growth target for the building materials giant, saying the company should be able to achieve around €1.3 billion in trading profit by 2027. The statement came during an analyst call following the release of the company's half-year results.

The CEO highlighted particularly strong momentum in the company's Advnsys insulation business, describing market share growth there as "hurtling along." He noted that the division's share of customer spending is increasing as Kingspan adds different technologies to its offering. The order bank for Advnsys currently stands at roughly one year, with some engagements extending beyond that period.

On the mergers and acquisitions front, the CEO said the company would consider "chunky" deals but ruled out any transaction that would stretch debt beyond two times EBITDA. Acquisition opportunities are "quite broad," he said, with fleshing out the Advnsys portfolio identified as a critical area of M&A focus. The CEO also confirmed that discussions regarding a potential IPO of Advnsys have concluded.

Looking ahead to the second half of the year, the chief financial officer expects trading margins to improve to close to 12 percent, with ongoing incremental gains anticipated in subsequent years. On input costs, the CEO said there could be a further small increase in steel prices in the second half, while chemical prices are expected to remain broadly stable.