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2018 in Review

2018 was a year of strong growth for Kingspan, with the company delivering revenues of over €4bn for the first time. Performance has been robust in most of our major markets, and momentum has improved through the year. With the order book going into the new financial year ahead of the prior year period, we are confident in our near-term outlook. Notwithstanding this we remain mindful of challenges to growth, particularly the continuing uncertainty in the UK. However, the geographical diversification of the business, helped by our acquisitions last year to expand our footprint in Latin America, Southern Europe and India, means we are well placed to continue to deliver long-term returns to shareholders. 

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

2018 in a Nutshell


64% Insulated Panels
20% Insulation Boards
7% Light & Air
5% Water & Energy
4% Data & Flooring Technology


85% Energy Efficiency & Conversion
15% Other


48% Mainland Europe
21% United Kingdom
20% Americas
7% ROW
4% Ireland


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

End Market

80% New Build
20% Refurbishment


70% Direct
30% Via Distribution

Financial & Operational Highlights









Trading Profit*




*Operating profit before amortisation of intangibles and non trading items

Financial Highlights
Operational Highlights
Five Year Financial Summary
  • Revenue up 19% to €4.4bn, (pre-currency, up 22%).
  • Trading profit up 18% to €445.2m, (pre-currency, up 20%).
  • Free cashflow up 55% to €308.4m.
  • Group trading margin of 10.2%, a decrease of 10bps.
  • Basic EPS up 16% to 184.0 cent.
  • Final dividend per share of 30.0 cent. Total dividend for the year up 13.5% to 42.0 cent.
  • Year-end net debt of €728.3m (2017: €463.9m). Net debt to EBITDA of 1.4x (2017: 1.05x).
  • ROCE of 16.8% (2017: 17.8%).
  • Insulated Panels sales growth of 21%. Strong activity in the Americas, a positive performance in Continental Europe and a solid UK outturn against a difficult backdrop. Good contribution from acquisitions in Europe and Latin America.
  • Insulation Boards sales growth of 12% reflecting a positive outturn in the Iberian acquisition, ongoing advancement of Kooltherm® and solid underlying markets overall. New capacity planned for the Nordic region and the Middle East reflecting ongoing conversion from traditional materials.
  • Light & Air sales approaching €300m with improved margins in Europe offsetting softer US margin, strong order intake overall in the US and a planned new facility in France to service Europe and the Middle East.
  • Water & Energy (formerly Environmental) sales growth of 13% with a new frontier established in the Nordic region.
  • Data & Flooring Technology (formerly Access Floors) sales growth of 3% with strong sales of datacentre solutions offsetting more sluggish office activity.
KPIs 2018 2017 2016 2015 2014
Revenue 4,372.5 3,668.1 3,108.5 2,774.3 1,891.2
Trading Profit 445.2 377.5 340.9 255.9 148.5
Trading Margin 10.2% 10.3% 11.0% 9.2% 7.9%
Profit before Tax 404.9 346.5 314.0 232.0 127.5
Free Cash Flow 308.4 198.5 206.6 267.0 109.3
ROCE 16.8% 17.8% 17.3% 15.2% 13.4%
Net Zero Energy 75% 69.0% 57.0% 33.0% 28.0%
Balance Sheet 2018 2017 2016 2015 2014
Working Capital of Annualised Turnover as a % of Q4 Sales  11.5% 13.0% 12.3% 10.9% 13.9%
Total Shareholder's Equity 1,788.9 1,568.0 1,471.5 1,293.8 1,009.1
Net Debt 728.3 463.9 427.9 328.0 125.5
Net Debt as a % of Total Shareholder's Equity  40.7% 29.6% 29.1% 25.4% 12.4%
Net Debt / EBITDA 1.4 1.05 1.06 1.04 0.66
Current Assets / Current Liabilities 1.59 1.65 1.56 1.43 1.47
Per Share Data (in euros cent) 2018 2017 2016 2015 2014
Earnings (basic)  184.0 159.0 143.8 106.7 62.6
Dividend  42.0 37.0 33.5 25.0 16.3
Total Shareholder Return % 3.8% 42.7% 7.4% 71.0% 11.6%

Business Review

During 2018 Kingspan generated record revenues of almost €4.4bn, and EBITDA exceeded €500m for the first time. Trading profit reached €445m, ahead by 18% over prior year, and EPS was up by 16% at 184.0 cent per share. In all, it was a positive outcome and delivered in the face of unprecedented turbulence in our raw material supply chain. Total investment was €604m in the period, €472.3m of which was on acquisition and €131.3m on net internal capital expenditure. Year-end net debt/EBITDA was 1.4x.

Momentum in activity generally improved for us as the year evolved, and with the notable exception of the politically hamstrung UK, most of our major markets ended the year strongly with order banks well positioned for the start of 2019. The majority of Western Europe performed robustly, North America advanced well, as did Latin America. Conversely, the UK eased back considerably towards year-end although it is relatively stable for Kingspan despite the backdrop.

Strategic Review

Our strategic agenda is focused on the four pillars of Innovation, Globalisation, Penetration and Planet Passionate. 2018 once again delivered advancements in all four areas:

Net-Zero Energy
quadcore app tablet_2
Product Innovation and range expansion is key to Kingspan. The rollout of QuadCore™ has been core to this agenda in recent years and in 2018 8% of global Insulated Panel sales contained this proprietary technology. 2019 will see its launch as a roof Insulation Board thereby creating a clear differentiator in this application. Development of Kooltherm® 200 continues and the fibre-free ‘A Core’ project is progressing on plan and we expect to launch our solution during 2020. IKON, our global innovation hub is well under construction at our home base of Kingscourt in Ireland and is scheduled to open around mid-year. It will focus on delivering the full spectrum of insulation and building envelope solutions that are ThermalSafe, FireSafe, SmokeSafe, WeatherSafe and FibreSafe.
Penetration growth and conversion from traditional insulation and building methods has been a core driver of our success to date. As energy consumption, energy conservation, and energy sources become increasingly important challenges for the world, demand should rise for product technologies which address this urgent agenda. Buildings consume approximately 40% of global energy and Kingspan’s solutions are designed to dramatically curtail the environmental damage from building emissions.
globe_world (2)
Globalisation of Kingspan remains at the heart of our ongoing evolution. In late 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.

Early in 2018 we acquired 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 Latin 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 with the acquisition in July 2018 of Balex Metal, a Polish manufacturer of Insulated Panels and Insulation Boards. Balex has a strong market presence locally and in surrounding export markets. It complements our existing presence in the region and brings with it two well invested manufacturing facilities.

In July we invested in the Kingspan Jindal business in India opening the door to a longer term conversion opportunity in the region.
We are Planet Passionate at Kingspan. We are committed to achieving 100% Net Zero Energy by 2020, and stand alone within our industry in having this goal. Our product technology provides designers, developers and owners the means with which to equally embrace a lower energy future. Circularity is becoming crucial, and our products are reusable, recyclable and increasingly comprise recycled PET with a commitment to more than doubling this source within the coming five years. We are developing initiatives to harvest recycled raw materials from both land and ocean.

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