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Ireland-based building materials company Kingspan has raised its full-year trading profit guidance, supported by strong demand from the data centre sector. The company now expects trading profit to rise about 18% to EUR 1.13 billion, compared with its earlier forecast of EUR 1.05 billion. Its data centre-focused Advnsys business reported a 34% increase in first-half sales, while order intake and backlog more than doubled year on year. Kingspan also expects further profit growth in 2027 and sees a possibility of crossing EUR 10 billion in annual revenue for the first time.
Dublin-based Kingspan has raised its full-year profit forecast after strong activity in data centre construction helped the building materials company perform ahead of its earlier expectations. The company said demand linked to the technology sector is continuing to remain strong, with data centre-related operations emerging as an important source of growth.
Kingspan now expects full-year trading profit to increase by about 18% to EUR 1.13 billion, compared with its previous forecast of EUR 1.05 billion. Chief Executive Officer Gene Murtagh told analysts that trading profit could reach around EUR 1.3 billion in 2027 if the current growth continues.
The company also said it could reasonably expect to cross EUR 10 billion in annual revenue for the first time. Its shares rose sharply in early trading following the upgraded outlook.
Kingspan's trading profit increased 10% year on year to EUR 487 million in the first half. The result included an EUR 8.4 million impact from currency movements and EUR 4.5 million in costs related to the abandoned initial public offering of its Advnsys data centre business.
Advnsys, which provides infrastructure including liquid cooling and air-handling technologies for data centres, recorded a 34% increase in first-half sales. Its order intake and backlog were both more than 100% higher than a year earlier, highlighting the continued increase in demand for data centre infrastructure.
The strong performance comes as data centres require greater amounts of power, cooling and supporting infrastructure, particularly as artificial intelligence-related computing increases. Kingspan said in its latest annual report that Advnsys had already benefited from strong technology-sector activity, with its order intake at the start of the year running at about twice the level of the same period a year earlier. The business reported 2025 revenue of EUR 1.65 billion and trading profit of EUR 184.5 million, with its backlog 24% higher at the end of that year.
Kingspan has built its data centre exposure over several years through Advnsys and earlier acquisitions. The business focuses on critical infrastructure for data centres, including cooling, ventilation and other systems needed to support high-density computing facilities. The company has said that the growing use of AI is increasing the need for energy management and cooling equipment in data centres.
The company has also been increasing its manufacturing capacity to respond to the demand. Its annual report said Kingspan's manufacturing footprint had reached 278 sites across more than 80 countries by the end of last year. Advnsys has added capacity in Europe, the US and Asia, while the group has also pursued acquisitions and new facilities to support its data centre business.
Kingspan has paused its previously announced EUR 650 million share buyback programme. The company had returned EUR 149 million to shareholders by the end of 2025.
Murtagh said the company would consider larger acquisition opportunities, although Kingspan does not intend to allow net debt to rise beyond two times earnings. Its current net debt-to-earnings ratio stands at 1.56 times, leaving some room for further investment while keeping leverage below the company's stated limit.
The group invested EUR 233.6 million during the first half, with around two-thirds of that amount directed towards capital expenditure. New facilities were built or commissioned in the United States, Vietnam and Australia as part of the company's wider expansion.
Kingspan's investment plans also include expanding Advnsys' capacity for data centre infrastructure. The company has previously outlined new facilities in the US and further expansion in Asia and other markets, with its brownfield investments intended to add manufacturing capacity closer to major data centre markets.
Source Reuters
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