Genuit cuts annual profit outlook as warm weather hits heating

Genuit Group PLC on Tuesday lowered its annual profit expectations after unusually warm weather weighed on its heating business, compounding challenging market conditions.

Shares in Genuit opened 13% down at 252.40 pence in London on Tuesday.

The Leeds, England-based provider of sustainable water and climate products now expects underlying operating profit of approximately £84 million for 2026, below company-compiled analyst consensus of £91 million to £96 million and down from £94.4 million in 2025.

Genuit said revenue for the nine months to September 30 rose 3.5% to £464.5 million on a reported basis, but fell 4.3% on a like-for-like basis.

Revenue in its Climate division increased 3.5% to £135.2 million, but declined 7.2% on a like-for-like basis.

The company said ventilation remained resilient, but weak heating volumes in the first half had been exacerbated by unusually warm weather in the second half, delaying typical autumn stocking at its Adey business.

Its Nu-Heat business also faced weak demand in the repair, maintenance and improvement market, which has been affected by expectations of higher interest rates.

Meanwhile, Water division revenue rose 4.0% to £328.5 million, although it fell 3.3% on a like-for-like basis. Residential markets performed relatively well, while commercial and civil engineering activity remained subdued.

Genuit said cash conversion exceeded 90% in the year to date, with leverage at 1.5 times at the end of September.

The company expects previously announced restructuring initiatives to generate £4 million in cost savings in 2027.

Chief Executive Joe Vorih said: "While the majority of the group has delivered a resilient performance, conditions have worsened in some specific markets due to unseasonally warm weather and the prevailing economic environment."

Genuit expects challenging trading conditions to continue into 2027, although it anticipates opportunities from government housing policies and increased water infrastructure spending.

The company will publish its full-year results in March 2027.

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