Kingspan (IR:KSP) shares fell over 3% on Friday after the materials company reported first-half 2025 EBITA about 4% below market expectations and issued full-year guidance that implies a similar cut to consensus forecasts.
The building materials manufacturer posted EBITA of about €950 million for the year, compared with estimates closer to €1 billion.
The company had previously cautioned in its first-quarter update that meeting consensus would be “a tall order,” but analysts described the latest reduction as unhelpful despite being anticipated.
The results showed mixed regional trends, with Western Europe described as “solid,” Central Europe showing recent improvement, the U.S. “more tentative than it has been” and Latin America “encouraging.” The order backlog rose year over year.
In a move seen as a shift in capital allocation strategy, Kingspan announced a €650 million share buyback to be carried out over the next 18 to 24 months, equivalent to about 5% of its market capitalization.
The company has historically maintained a limited dividend payout ratio of about 15% and focused on mergers and acquisitions, leading analysts to expect questions about future deal activity.
Kingspan also unveiled a restructuring plan to consolidate its operations from five divisions into two.
Source :
https://www.investing.com/news/earnings/kingspan-shares-fall-3-on-earnings-miss-and-guidance-cut-4178885
