Insulation specialist Kingspan says it has overcome a sluggish start to the year to put in a good performance for the first quarter as a whole.
In a trading update for the quarter ended March 31st, the company attributed the slow start to seasonal factors. But group sales rose 9 per cent year on year to €2.1 billion, and were “modestly ahead” on an underlying basis.
Sales of its insulated panels rose 4 per cent, while underlying sales were broadly in line, while insulation sales saw a similar performance, and roofing and waterproofing sales were up 55 per cent on the acquisition of Nordic Waterproofing.
Sales in the light, air and water division were hit by slower US activity, with underlying sales falling 4 per cent.
The growth of data centre activity lifted Kingspan’s data solutions sales by 37 per cent during the quarter, with AI applications boosting interest.
On geographic basis, Kingspan’s European division recorded sales growth with “reasonable” activity, while order intake in the US was strong, despite slow sales. The company says its US order book is at record levels.
Sales in Latin American were robust, the company said, with the Middle East and India starting the year well.
Net debt was €1.7 billion at the end of the quarter, a rise of €138 million on the end of 2024. The company said it expects to deliver overall trading profit growth in the first half.
“The group’s trading outlook, as we move through the early part of the second quarter, remains in reasonable shape overall with sentiment varying significantly by region,” Kingspan said. “We remain focused on factors we can control in an environment where there is much background noise.”
In a note, Davy analyst Flor O’Donoghue said the broker expected to leave its full-year trading profit estimate of €985 million unchanged.
“That said, our current foreign exchange assumption is for a neutral impact on trading profits, but recent moves in the US dollar and Brazilian real versus the euro could potentially create a circa €10 million translational headwind.”
Kingspan is set to hold its annual general meeting on Thursday.
