Kingspan lifts profit outlook as data centre demand surges
Kingspan raises full-year profit guidance by 18% to €1.13bn, citing strong data centre demand and record revenue prospects.
Irish building materials group Kingspan has upgraded its full-year profit forecast, citing robust demand from the data centre sector, which it describes as operating independently of the broader economy.
The company now expects trading profit to rise approximately 18% to €1.13 billion ($1.30 billion), up from the €1.05 billion it projected in late April. It also indicated that annual revenue could cross the €10 billion mark for the first time.
In the first half of the year, trading profit grew 10% year-on-year to €487 million. This figure includes an €8.4 million currency impact and €4.5 million in costs related to the abandoned initial public offering of its ADVNSYS data centre business.
ADVNSYS, which manufactures liquid cooling and air-handling systems for data centres, saw first-half sales climb 34%, with order intake and backlog both more than doubling year-on-year.
Meanwhile, Kingspan has paused its previously announced €650 million share buyback programme, having returned €149 million to shareholders by the end of 2025.
The group invested €233.6 million in the first six months, with two-thirds allocated to capital expenditure. New facilities were built or commissioned in the United States, Vietnam, and Australia.