Kingspan - Data Centre’s the driving force…
Kingspan Lifts Profit Outlook as Data Centre Boom Drives Growth
Kingspan shares surged more than 15% in Dublin trading after the building materials and insulation group upgraded its full-year profit forecast, citing exceptional growth in its data centre business.
The Co Cavan-based company said demand linked to data centre construction continues to strengthen, supported by a rapidly expanding technology sector that remains relatively insulated from broader economic trends.
Kingspan now expects full-year trading profit to reach approximately €1.125 billion, representing growth of around 18% compared with 2025 and significantly ahead of the €1.05 billion forecast issued in April. The company also said it is on track to surpass €10 billion in annual revenue for the first time.
In the first six months of the year, trading profit increased by 10% to €487 million, despite a foreign exchange impact of €8.4 million and €4.5 million in costs related to the abandoned IPO of its data centre subsidiary, ADVNSYS.
ADVNSYS, which provides liquid cooling, air-handling systems and other infrastructure technologies for data centres, delivered particularly strong results. First-half sales rose 34%, while both order intake and backlog more than doubled compared with the same period last year.
Kingspan also announced a pause to its previously planned €650 million share buyback programme as it evaluates potential investment opportunities. By the end of 2025, the company had already returned €149 million to shareholders under the scheme.
Investment across the group totalled €233.6 million during the first half, with around two-thirds directed towards capital expenditure. New facilities were built or commissioned in the United States, Vietnam and Australia.
Group revenue rose 8% to €4.86 billion, up from €4.52 billion a year earlier. Profit after tax increased to €352.6 million, compared with €334.2 million in the first half of last year.
Kingspan said trading improved significantly during the second quarter after a seasonally slower start to the year and expects growth to accelerate further in the second half. The company also increased its interim dividend to 27.1 cent per share, up from 26.3 cent a year ago.
Chief Executive Gene Murtagh said momentum had strengthened considerably during the second quarter and that both the ADVNSYS and insulated building envelope divisions delivered strong performances.
He noted that ADVNSYS continues to benefit from growing demand for data infrastructure solutions, while the core insulation business achieved growth in sales, profits and order intake despite challenging market conditions.
Murtagh also highlighted progress on Kingspan’s sustainability goals, saying the company remains on track to reduce total emissions in 2026 by 70% compared with 2020 levels.
Looking ahead, he said Europe remains relatively strong, Latin America continues to perform well, and while parts of the US market are softer, demand from the technology sector remains exceptionally robust. With order backlogs substantially higher than a year ago, Kingspan expects continued revenue growth and a record financial performance in 2026.
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