Kingspan Group plc (KGSPY)
OTHER OTC:KGSPY
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Kingspan Group
(OTC:KGSPY)
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Rating:71Outperform
Price Target:
$95.00
▲(14.29% Upside)
Action:Reiterated
Date:02/26/26
The score is driven primarily by solid financial performance and a strong technical uptrend. Earnings-call guidance and demand/backlog commentary add support despite near-term headwinds (FX, working capital, input inflation, and roofing ramp). Valuation is the main restraint due to a higher P/E and low dividend yield.
Positive Factors
Strong free cash flow & liquidity
Sustained free cash flow and a large undrawn revolving facility give Kingspan durable financial flexibility to fund capex, integration of acquisitions, and the roofing rollout without immediate reliance on external markets. This supports capital allocation and cushions cyclical swings over the next several years.
Negative Factors
Weakened cash conversion
A sharp drop in cash conversion shows more earnings tied up in working capital and investment, reducing the quality and predictability of free cash flow. Over a multi‑quarter horizon this can constrain organic reinvestment, limit buybacks/dividends, and increase dependence on balance‑sheet liquidity for growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow & liquidity
Sustained free cash flow and a large undrawn revolving facility give Kingspan durable financial flexibility to fund capex, integration of acquisitions, and the roofing rollout without immediate reliance on external markets. This supports capital allocation and cushions cyclical swings over the next several years.
Read all positive factors
Kingspan Group (KGSPY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.47B
Dividend Yield0.6%
Average Volume (3M)936.00
Price to Earnings (P/E)9.5
Beta (1Y)0.74
Revenue Growth11.63%
EPS Growth6.09%
CountryUS
Employees24,802
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)3.69
Shares Outstanding180,339,070
10 Day Avg. Volume1,690
30 Day Avg. Volume936
Financial Highlights & Ratios
PEG Ratio-15.24
Price to Book (P/B)3.04
Price to Sales (P/S)1.54
P/FCF Ratio30.00
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit5.77
Enterprise Value/Ebitda13.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kingspan Group Business Overview & Revenue Model
Company Description
Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in the Republic of Ireland, the United Kingdom, rest of Europe, the Americas, and internationally. It operates through five segments: Insulated...
How the Company Makes Money
Kingspan primarily makes money by manufacturing and selling building products to contractors, builders, distributors, and project owners. Its core revenue streams come from (1) insulated panel systems used for walls, roofs, and cold storage applic...
Kingspan Group Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial picture: strong top‑line growth at constant currency, solid EBITDA, improving Advances momentum (double intake, +12% revenue, +24% backlog), robust free cash flow and a healthy balance sheet with committed liquidity. Management reiterated medium‑term growth ambitions, a material investment pipeline and confidence in passing through input inflation. Offsetting factors include FX headwinds, some working capital timing effects, weather‑related Q1 softness, ongoing input inflation (especially steel), initial margin dilution in the new U.S. roofing rollout and non‑bankable elements of the backlog. On balance the positives—notably demand, backlog strength, cash generation, emissions progress and a clear capital allocation plan—outweigh the near‑term headwinds.Positive Updates
Revenue Growth
Group revenue of EUR 9.2 billion, up 7% reported and up 9% at constant exchange rates year‑on‑year.
Negative Updates
FX Headwinds
Foreign exchange movements reduced reported sales by ~EUR 138 million year‑on‑year and shaved ~EUR 21.4 million from profit (EUR 19.6 million in H2). Management cites an estimated EUR 17–18 million FX headwind for 2026 at current spot rates, concentrated in H1.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Group revenue of EUR 9.2 billion, up 7% reported and up 9% at constant exchange rates year‑on‑year.
Read all positive updates
Company Guidance
Management guided to around 10% earnings growth in 2026 and reconfirmed prior trading profit guidance of c. €1,050m, with Advances EBITDA at least €300m this year and a longer‑term target of c. €600m over 4–5 years; they expect capex of €350m (vs €325m in 2025) and an effective tax rate of 16.5%. At current spot FX they see a c. €17–18m headwind to 2026 while prior acquisitions annualise to ~€13m; operational momentum entering the year includes insulated panel order bank +8% and panels intake +8% in the first six weeks, Advances revenue +12% in 2025 with backlog +24% and order intake double year‑on‑year in the first six weeks, although weather may soften Q1 before recovery from March. Balance sheet metrics highlighted: 2025 free cash flow €429m, net debt €1.88bn (net debt/EBITDA 1.65x), ~€600m cash, €800m undrawn green RCF and gross debt ~€2.2bn; roofing build‑out is expected to deliver US sales of $150–200m in 2027 and c. $300m in 2028 with roofing margins in single digits in 2027, moving to group averages by 2028.Kingspan Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.84B | 8.61B | 8.09B | 8.34B | 6.50B |
| Gross Profit | 2.57B | 2.55B | 2.34B | 2.22B | 1.86B |
| EBITDA | 1.17B | 1.18B | 1.09B | 983.50M | 893.10M |
| Net Income | 644.71M | 665.50M | 640.30M | 598.00M | 554.10M |
Balance Sheet | |||||
| Total Assets | 9.82B | 9.82B | 8.00B | 7.68B | 6.39B |
| Cash, Cash Equivalents and Short-Term Investments | 584.45M | 1.01B | 938.70M | 649.30M | 641.40M |
| Total Debt | 2.85B | 2.82B | 2.14B | 2.39B | 1.56B |
| Total Liabilities | 5.09B | 5.23B | 4.05B | 4.29B | 3.43B |
| Stockholders Equity | 4.48B | 4.29B | 3.85B | 3.32B | 2.89B |
Cash Flow | |||||
| Free Cash Flow | 453.56M | 527.80M | 924.50M | 422.80M | 160.40M |
| Operating Cash Flow | 804.25M | 894.50M | 1.16B | 692.00M | 329.20M |
| Investing Cash Flow | -602.45M | -1.11B | -458.30M | -1.30B | -708.70M |
| Financing Cash Flow | -548.08M | 254.60M | -416.30M | 630.80M | -351.70M |
Kingspan Group Technical Analysis
Negative
83.12
Price Trends
87.88
Negative
88.95
Negative
85.12
Positive
Market Momentum
-1.52
Positive
42.28
Neutral
26.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KGSPY, the sentiment is Negative. The current price of 83.12 is below the 20-day moving average (MA) of 89.37, below the 50-day MA of 87.88, and below the 200-day MA of 85.12, indicating a neutral trend. The MACD of -1.52 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 26.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KGSPY.
Kingspan Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $15.47B | 9.50 | 11.58% | 0.60% | 11.63% | 6.09% | |
67 Neutral | $13.57B | 14.37 | -566.50% | 1.94% | -0.31% | 10.03% | |
66 Neutral | $13.51B | 26.65 | 38.36% | 1.28% | -0.53% | -1.29% | |
64 Neutral | $10.19B | 81.09 | 29.68% | 0.47% | 5.03% | -5.49% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $9.46B | ― | -12.50% | 2.43% | -12.20% | -333.77% | |
54 Neutral | $7.98B | ― | 6.92% | ― | -8.33% | -66.48% |
* Industrials Sector Average
KGSPY
Kingspan Group
85.54
1.60
1.91%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.