Genuit Group (GEN) Trading update summary

Trading environment and operational response

• Navigated a challenging environment marked by lower market volumes and significant cost inflation, especially in polymers.

• Implemented double-digit price increases and accelerated cost-saving initiatives to offset inflation.

• Focused on integrating recent acquisitions, which are expected to be accretive to results this year.

• Emphasized growth in less cyclical segments, such as water infrastructure and ventilation, supported by regulatory drivers.

Divisional performance and strategic initiatives

• Climate division revenue was 0.4% lower year-on-year, with ventilation outperforming heating; Monodraught integration progressing well.

• Water division revenue was 0.3% lower year-on-year, with Middle East revenue down 50% due to conflict.

• Over 50% of polymer consumption is recycled, helping mitigate cost inflation and reduce carbon footprint.

• AMP8 project quotes exceed £5m year-to-date, with a win rate over 50%.

• Davidson Holdings integration is on track, with operating margins above 20% and incremental benefits expected ahead of schedule.

Financial guidance and outlook

• Underlying operating profit for H1 2026 expected to be around prior year’s level (£44.6m), despite volume and inflation pressures.

• Annualised cost savings of £4m–£5m targeted, with 60–70 bps margin improvement expected in 2027.

• Full-year 2026 underlying operating profit anticipated towards the lower end of analyst estimates (£94.7m–£105.5m).

• Structural and regulatory drivers, such as the Warm Homes Plan and Future Homes Standard, are expected to support growth in 2027 and 2028.

• Interim results for the six months ending 30 June 2026 will be reported on 11 August 2026.