Kingspan notes strong order growth as Advnsys supports third quarter

Kingspan Group PLC on Monday backed full-year guidance after reporting strong third-quarter growth at its data centre and critical infrastructure division, Advnsys.

The Kingscourt, Ireland-based building materials supplier said sales increased 16% in the third quarter from a year prior, mainly due to "strong" underlying sales growth of 12%. At constant currency, sales grew 15%.

For the first nine months of 2026, Kingspan said sales were EUR7.6 billion, up 10% on-year, and up 11% at constant currency.

Insulated Building Envelopes sales increased by 4% on year in the first nine months of 2026, and by 8% in the third quarter alone.

Kingspan said the pace of activity in the Americas has picked up since mid-year, Continental Europe has been positive overall, although activity in France has been softer in more recent months. The Middle East has been "resilient" and Asia Pacific is "performing well" overall.

Within the division, the global insulated panels backlog is ahead by a low teens percentage in volume at the end of September compared with a year ago, the firm added.

Advnsys sales in the first nine months of 2026 were up 41% from a year ago, and up by 54% in the third quarter, with "very strong data activity as well as encouraging growth in non-data activity".

Order intake has been "very strong" with year-to-date intake to the end of September of EUR2.7 billion, Kingspan said, over double that of the same period last year.

"We are experiencing an ever-increasing wave of inbound inquiries and continue to rollout capacity, and associated supply chain resilience, as rapidly as possible to meet demand," the company said.

To cope with the demand, Kingspan said activity has ramped up "considerably" at its Arkansas site, while its operation in Kentucky entered production in June. Further developments are both underway and planned in Europe, Southeast Asia and Latin America, it said.

In January, Kingspan shelved plans for a proposed initial public offer of Advnsys. At the time it said it believed that shareholder value would be maximised by allowing the division to "further capitalise on its rapidly growing and strong order book momentum".

The company on Monday made no comment on potential changes to demand from artificial intelligence data centre construction following the US mid-term elections last week that rejected almost all the AI data centre construction proposals that were on the ballot.

Kingspan said the integration of power management systems business, BMC Manufacturing Group, is "underway in earnest as we look towards rapid acceleration in 2027". Kingspan completed the EUR850 million acquisition in September.

Net debt at the end of September stood at EUR2.48 billion, post the BMC acquisition, and is anticipated to be around EUR2.2 billion at year end.

Looking ahead, Kingspan said that while much of the seasonally important fourth quarter is remaining, it continues to expect full year trading profit of around EUR1.15 billion, up 20% on-year.

Assuming end-markets remain relatively stable, the "strong" backlog and pipeline ought to support a trading profit in the region of EUR1.47 billion in 2027, it added.

Kingspan traded down 2.7% at EUR92.80 in Dublin on Monday morning.

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