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2017 in Review

2017 was another year of strong performance for Kingspan. We have continued our globalisation strategy with several significant acquisitions, including establishing a market leading presence in Latin America. Our new Light & Air division is performing ahead of expectations and expanding the range of product solutions the business offers. The challenge of increased input costs has been effectively managed to minimise the impact on profit margins. Notwithstanding the weakening UK market our well diversified business is well placed for the longer term.

Gene M. Murtagh, Chief Executive Officer, Kingspan Group PLC

2017 in a Nutshell


63% Insulated Panels
21% Insulation Boards
6% Light and Air
5% Access Floors
5% Environmental


44% Mainland Europe
25% Britain & N. Ireland
20% Americas
7% Rest of World
4% Republic of Ireland


70% Commercial and Industrial
18% Residential
12% Office & Data


70% Direct
30% via Distribution

End Market

80% Newbuild
20% Refurbishment


85% Energy Efficiency & Conversion
15% Other

Financial & Operational Highlights









Trading Profit




*Earnings before interest, taxes, depreciation, amortisation and non-trading items

Financial Highlights
Operational Highlights
Five Year Financial Summary
  • Revenue up 18% to €3.7bn, (pre-currency, up 20%)
  • Trading profit up 11% to €377.5m, (pre-currency, up 14%)
  • Acquisitions contributed 9% to sales growth and 8% to trading profit growth in the year 
  • Group trading margin of 10.3%, a decrease of 70bps
  • Basic EPS up 11% to 159.0 cent
  • Final dividend per share of 26.0 cent. Total dividend for the year up 10% to 37.0 cent
  • Year-end net debt of €463.9m (2016: €427.9m). Net debt to EBITDA of 1.05x (2016:1.06x)
  • Strong ROCE of 17.8% (2016:17.3%)
  • Insulated Panel sales growth of 17%. A positive performance in Continental Europe, and a solid outcome in North America both drove this number despite the sharp slowdown in the UK towards year end.
  • Insulation Board sales growth of 12% owing to significant price inflation and the structural shift to Kooltherm® in the UK, Ireland and Mainland Europe.
  • Light & Air sales of €205m marking a strong first full year of trading for this division and the development of a unique US and European footprint.
  • A strong year for Environmental with ongoing improvement in profitability. Access Floors had a solid year, albeit with a weakening UK backdrop.
  • The recovery of raw material inflation was a key theme during 2017. Supply eased somewhat toward year-end, although prices remain high into the current period.
  • A record committed acquisition spend of €614m, of which €174m was completed during 2017. Key developments completed or pending include market entry into Brazil, Colombia and Southern Europe as well as an extension of our presence in Western and Central Europe.
KPIs 2017 2016 2015 2014 2013
Revenue 3,668.1 3,108.5 2,774.3 1,891.2 1,776.8
Trading Profit 377.5 340.9 255.9 148.5 122.8
Trading Margin 10.3% 11.0% 9.2% 7.9% 6.9%
Profit before Tax 346.5 314.0 232.0 127.5 101.9
Free Cash Flow 198.5 206.6 267.0 109.3 78.2
ROCE 17.8% 17.3% 15.2% 13.4% 12.3%
Net Zero Energy 69.0% 57.0% 33.0% 28.0% 18.0%
Balance Sheet 2017 2016 2015 2014 2013
Working Capital as a % of Sales  13.0% 12.3% 10.9% 13.9% 12.0%
Total Shareholder's Equity 1,568.0 1,471.5 1,293.8 1,009.1 859.6
Net Debt 463.9 427.9 328.0 125.5 106.7
Net Debt as a % of Total Shareholder's Equity  29.6% 29.1% 25.4% 12.4% 12.4%
Net Debt / EBITDA 1.05 1.06 1.04 0.66 0.66
Current Assets / Current Liabilities 1.65 1.56 1.43 1.47 1.83
Per Share Data (in euros cent) 2017 2016 2015 2014 2013
Earnings (basic)  159.0 143.8 106.7 62.6 51.7
Dividend  37.0 33.5 25.0 16.3 14.0
Total Shareholder Return % 42.7% 7.4% 71.0% 11.6% 57.9%

Business Review

2017 was a significant year for Kingspan which, despite its challenges, was a record period for the Group. Revenue rose by 18.0% to €3.7bn, and trading profit grew by 10.7% to €377.5m. The resultant increase in EPS was 10.6% to 159.0 cent per share. In addition to volume growth, price inflation also contributed to sales as we pushed to recover unprecedented raw material cost increases.

2017 was also a year of record acquisition activity for Kingspan. In total, between completions and signed contracts we committed almost €614m, €174m of which was incurred during the year with a further €440m currently awaiting regulatory approval. A centrepiece of these developments has been our increased exposure to exciting new frontiers including Latin America and Southern Europe, as well as adding significantly to our insulation technology via the Synthesia business. In addition to these acquisitions we also invested a net amount of €85.6m in capital expenditure with a strong emphasis on the organic global roll-out of our Insulated Panel and Insulation Boards businesses.

We continue to make progress on our internal and ongoing environmental agenda and reached a Net Zero Energy level of 69%, which brings us a sizeable step closer to our 2020 target of achieving 100% across the globe.

Strategic Review

Our strategic agenda is focused on the four pillars of innovation, globalisation, penetration and net-zero energy. 2017 delivered significant advancements across all four areas.

Net-Zero Energy
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Product Innovation and range expansion progressed across the Group, the most significant of which is the ongoing roll-out of Quadcore™ now available from approximately half of our Insulated Panel facilities worldwide. 4% of our Insulated Panel volume sold globally containe this unique formulation. The Kooltherm® 100 Series was launched in 2016 and has made significant progress. Work has already begun on a 200 Series.

These technologies are distinct in how they can address the ever-increasing fire performance demands of insulation systems, without having to compromise on the weight, moisture and thermal deficiencies of traditional fibrous insulation. Kingspan’s products are among the most independently fire tested insulation systems in the world, having carried out more than 1,800 external fire tests to national and international standards for compliance across global regulatory regimes.

Digitalising Kingspan is fast becoming a centrepiece of our innovation strategy, as part of which we recently invested in Invicara Pte Ltd, a Business Information Modelling (BIM) company. This and the many other initiatives underway are all designed to transform how we do business and how our specifiers and customers interact with us over the next three to five years.
Penetration growth and conversion from traditional insulation and building methods has been a core driver of our success to date. As energy consumption, conservation and sources increasingly becomes centre-stage, so do the enablers.
Today, buildings consume approximately 40% of energy globally. In an effort to reduce this figure, building design is now undergoing an evolution. As this evolution deepens, so will the penetration of materials that facilitate this evolution.

Kingspan’s solutions are ideally positioned to play a key role in  this dynamic.
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Globalisation of Kingspan remains central to our ongoing progress. During 2017 we further expanded our manufacturing footprint by investing in partnerships in Brazil and Colombia. These acquisitions firmly place Kingspan in a market leading position across Latin America, a new frontier for Kingspan, with a strong platform for further growth in the region.

Towards year-end we also announced agreements to acquire a presence in Southern Europe through the Synthesia Group, consisting of three operating businesses; Synthesia International, Poliuretanos and Huurre. Through its Huurre and Poliuretanos businesses, the Synthesia Group gives Kingspan a leading position in both Insulated Panels and Insulation Boards on the Iberian Peninsula and strengthens our emerging Insulated Panels presence in Central and South America. It also provides an excellent technology platform for blended chemical systems similar to those used throughout the wider Kingspan Group.

We also advanced our position in Central Europe through the planned acquisition of Balex Metal, a Polish manufacturer of insulated panels and insulation boards. Balex has a strong market presence locally and in regional export markets. It complements our existing presence in the region and brings two well invested panel/board manufacturing facilities.
The pursuit of Net Zero Energy is at the heart of what we aim to achieve, both internally and externally. Our products and solutions greatly assist building designers, owners and occupiers to move in this direction and, within Kingspan itself, we are committed to achieving Net Zero Energy by 2020.

In 2017 we achieved 69%, a significant increase on the 57% achieved a year earlier, and we remain on target to achieve 100% by 2020. Progress in 2017 was achieved through numerous initiatives implemented as a part of our three step strategy – ‘Save More’, ‘Generate More’ and ‘Buy More’. Particular highlights have included the use of our own energy saving solutions including insulation, LED lighting and day-lighting systems, alongside our renewable energy generation solutions. These efforts have led to our recognition on CDP’s global “A List”, an achievement we were delighted to obtain for the third year running.

We recognise the central importance of addressing the built environment as part of wider efforts to mitigate greenhouse gas emissions. This effort will not only be reliant on solutions for new buildings, but also on the ability to accelerate the renovation rate of the existing building stock. The ongoing revisions to key EU legislation including the Energy Performance of Buildings Directive (EPBD) is a signal to industry to take action.

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