Genuit Group (GEN) Q3 2026 TU earnings summary

Financial performance

• 9M revenue £464.5m, up 3.5% reported and down 4.3% LFL YoY; LFL adjusts for acquisitions and disposals, and excludes Polydeck revenue from Water.

• Cash conversion above 90% YTD; leverage 1.5x at end-September 2026, with no near-term maturities.

Divisional trading

• Climate revenue £135.2m, up 3.5% reported and down 7.2% LFL YoY; Ventilation is expected to grow YoY in H2 on a pro forma basis.

• Heating volumes were weak in H1 and further affected in H2 by unusually warm weather delaying Adey’s autumn channel stocking; Nu-Heat faced weak RMI demand and anticipated rate rises.

• Water revenue £328.5m, up 4.0% reported and down 3.3% LFL YoY; residential growth was supported by balanced pricing and Manthorpe, while Commercial and Civils remained subdued.

• New-housebuilding completions were resilient, though sentiment remains challenging; AMP8 orders continue to grow, with good project visibility for 2027.

Operations and outlook

• Balanced double-digit price increases were implemented in May for products affected by polymer inflation, mainly in Water Residential; polymer costs have stabilised, but the cost outlook remains uncertain.

• Site simplification projects are on track for completion by December, including integrating two Davidson Holdings sites with no capacity loss; expected 2027 cost savings are £4m.

• Monodraught and Davidson Holdings integrations are complete; Monodraught secured record order intake and YTD revenue growth of 7% on a pro forma basis.

• FY 2026 underlying operating profit is now expected to be approximately £84m amid persistent challenging conditions, particularly in Heating.

• Future Homes Standard, Warm Homes Plan, social housing policies and AMP8 are expected to create further opportunities from 2027; announced simplification initiatives are expected to add over £4m operating profit in 2027.