Genuit Group (GEN) H1 2025 earnings summary

Executive summary

• Revenue increased 9.3% year-on-year to £297.8m, with EBIT up 2.3% to £44.6m, outperforming a flat market despite cost headwinds.

• Growth was driven by new solutions, targeted market share gains, and strategic focus on high-growth segments.

• Dividend per share increased to 4.2p, reflecting a progressive policy and confidence in long-term prospects.

• H2 margin improvement is expected due to management actions and operational improvements.

• Regulatory and structural tailwinds, including AMP8, Future Homes Standard, and Awaab’s Law, are expected to drive medium-term growth.

Financial highlights

• H1 2025 revenue was £297.8m, up 9.3% year-over-year; EBIT £44.6m, up 2.3%; EBIT margin at 15.0%, down 100bps.

• Like-for-like revenue growth was 6.1%, with growth mainly from product adoption and market share gains.

• Underlying profit before tax up 3.2% to £38.8m; underlying EPS up 3.6% to 11.6p.

• Cash conversion at 65.1% in H1, with a full-year target of around 90%.

• Gross margin at 43.9%, down 50–70bps year-over-year, mainly due to M&A mix and wage costs.

Outlook and guidance

• Full-year underlying operating profit is expected to be in line with consensus (£93.0m–£97.7m), despite challenging market conditions.

• Sequential EBIT margin improvement anticipated in H2, driven by price increases, productivity, and cost efficiencies.

• No increase in market volumes expected for the remainder of the year; focus remains on outperforming the market through innovation and share gains.