Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue increased by 6% for the year, driven by a strong fourth quarter.
- Trading profit rose by 3% and earnings per share increased by 4%.
- Emissions reduced by 27% year-on-year, contributing to an 80% reduction over four years.
- The data business saw a spectacular revenue increase of 36%, driven by global AI expansion.
- The roofing and waterproofing segment experienced a breakthrough year with profitability and margins nearly doubling.
Negative Points
- Trading margin decreased by 30 basis points to 10.5% for the year.
- The insulated panels business was subdued in Europe despite strong performance in the Americas.
- Challenges in keeping up with demand in the data business due to factory construction pace.
- The dividend payout, although increased by 4%, remains modest at 15% of earnings.
- The company faces potential risks and uncertainties in forward-looking statements, as highlighted in their SEC filings.
Q & A Highlights
Q: Can you provide more details on the performance of the insulated panels business?
A: The insulated panels business, our largest segment, performed in line with the previous year. This was largely due to a strong performance in the Americas, while Europe was more subdued. Notably, our activities in Latin America have reached approximately $500 million in revenue, with recent expansions into Chile and Paraguay. We are also launching our power panel product, which has just received factory mutual certification, expected to drive long-term growth. - Unidentified_1
Q: How did the insulation business perform, and what are the future prospects?
A: Our insulation business has seen significant progress, particularly in the acoustic segment, where we are building a global presence. We have taken a controlling stake in the market leader for wood fiber insulation, Steico, based in Germany, and entered the stone wool business with a startup plant acquisition in Germany. These moves position us well for future growth. - Unidentified_1
Q: What drove the impressive growth in the data business?
A: The data business experienced spectacular growth, with revenue up 36% for the year and 45% like-for-like in the second half. This growth is primarily driven by the global expansion of AI capabilities. Our main challenge is building factories quickly enough to meet the increasing demand, which is a positive issue to have. - Unidentified_1
Q: Could you elaborate on the developments in the roofing and waterproofing segment?
A: The roofing and waterproofing segment had a breakthrough year, with profitability and margins nearly doubling. We acquired a controlling stake in Nordic Waterproofing, now close to 90%, and made our first acquisition in the US with IP Roofing. We are advancing our investments in Oklahoma and Maryland, expecting product trials by Q4 this year and market entry early next year. - Unidentified_1
Q: What are the financial highlights for Kingspan Group in 2024?
A: Group revenues grew by 6% to €8.6 billion, with trading profits up 3% to €907 million. Earnings per share increased by 4% to €365.2. The total dividend for the year is €54.8, reflecting a 15% payout in line with our policy. We achieved strong free cash flow of €509 million, and the trading margin was 10.5%, with a strong recovery in the second half to 10.9%. - Unidentified_2
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
