Kingspan Grp Ord

Hello and welcome everyone to the Kingspan Preliminary Results 2025. My name is Becky and I will be the operator today. All lines will be muted throughout the presentation portion of the call with a chance for Q&A at the end. If you wish to ask a question in this time, please press start followed by one on your telephone keypads. I will now hand over to your host, Jean Mata, CEO, to begin. Please go ahead.

Excellent. Good morning. Thank you and welcome everybody. I'm joined here by Jeff and Dave to take you through our 2025 results. If you could please just go to slide three in the results deck titled 25 in summary. And just in brief, we saw revenue growth to 9.2 billion euro, which was Pre-currency growth of 9%. On the EBITDA, we were just over 1.2 billion, which similarly was 9 up. And trading profits was just over 955 million. And again, like for Lycra, our pre-currency growth of 8%, which brought our EPS to 370 cents. And once again, on our continued emission reductions program right across the group, we've seen since 2020, a scope one and two internal reductions of 70%, which is pretty extraordinary. And that continues to advance along the lines that we've discussed previously. Backing up those results clearly and exiting the year, the insulated panel order bank as part of the envelope was ahead 8%, and actually the intake in the same product group is ahead 8% for the first six weeks of this year. And in the advanced business units, the revenue was up 12% in the year, which obviously accelerated through the second half. The backlog at the end of the year was ahead 24% in that whole product group. And the order intake in the advanced product sets is double prior year in the first six weeks. And we expect that growth rate to actually accelerate from this point forward. So all in all, it was a strong year given the circumstances. We entered this year with, I would say, very encouraging backlogs and activity right across the business. And notwithstanding the weather at the start of the year, which won't surprise anybody, we do expect to see significant growth in 2026. So just for some more colour and all that, I'd hand you over to Geoff now.

Thank you, Gene. I'm on page six, the financial highlights. Firstly, group revenue. or 9% at constant exchange rates. The principal FX move year on year was US dollar to Euro. To be specific on that, the average translation rate from Euro to US dollar was 1.08 in 2024 versus 1.13 in 2025 in terms of our average translation rate. Group EBITDA, 1.22 billion, up 7%. Trading profit, 9.55%. up 5% or 8% at constant exchange rates. Earnings per share at 3.70. Our total dividend for the year, 55.5 cent, a payout ratio of 15%, which is our policy guide. Strong free cash flow of 429 million, and I'll come to the components of that shortly. Trading margin at a headline down 10 basis points, 10.4%, but actually underlying earnings Pre-acquisition, we were actually ahead by 20 basis points to 10.7% year-on-year. Net debt, we ended the year 1.88 billion. And in terms of leverage, net debt to EBITDA of 1.65 times. Turning to page seven, just bridging revenue and trading profit year-on-year, our 2024 revenue is about 8.6 billion. Care DB, The significant component of sales growth during the year was the 707 million contributed by acquisitions year over year. And then we had the FX move of 2% or so, clipping sales by 138 million. From a profit perspective, 2024 was 906.7. Currency shaved 21.4 million off that. It's worth highlighting that. 19.6 million of that occurred in the second half of the year because that's really when the pronounced exchange rate move actually happened. Acquisitions contributed 49.5 million in the year, initially dilutive but will kick on from here in terms of trading margin and underlying profitability up by 20 million. The geographic profile of sales set out on page 8, pretty consistent year on year. The Americas at 22% of the business, the rest of the world at 8% and Europe all told across all territories, 70% of the business in both 24 and 25. Turning to free cash flow on page 9, naturally the strongest component of free cash is the EBITDA of 1.22 billion. Working capital, an outflow of 151 million. Our working capital to sales ratio is 11.9%, which on a five-year view is an efficient performance. It happened to be up by 50 basis points on the very low level of December 24th. and about half that move reflects the timing of acquisitions versus year-end. CapEx, £325 million. We're guiding £350 million for this current year. The other significant cash flow item, tax, of £132.8 million, in line with our income statement charge, with an effective tax rate of 16% in December. in 2025, and our guidance for 2026 is an effective tax rate of 16.5%. So all of that combined to give us a free cash flow of 429 million. From a capital perspective, that's set out on page 10 in terms of the reconciliation of opening and closing net debt. We reduced debt by the free cash. We deployed 258 million in acquisitions. and incurred 168 million in deferred consideration. We also acquired 2.2 million shares during the year for a consideration of 148.6 million. That's an average share price of 67.58. Dividends paid of 99.5 million during the year. So net debt end of the year, 1.88 billion. A feature of the business for a long period of time has been the strength of our balance sheet. Some commentary around that on page 11. The group has significant liquidity. The principal strands of that are our undrawn €800 million green revolving credit facility, which is fully committed to May 2028. We have cash balances on hand of approximately €600 million. Our total gross debt... It's about 2.2 billion or so between private placement and public placement. And the weighted average maturity of all of our drawn debt is a little over four years, and we have no significant maturities in the current financial year. So with that, I will hand back to Jim. Thank you, Geoff.