Kingspan Group: Price Deflation Weighs on Top-Line Growth in Early 2024; Shares Expensive

Price deflation in thermal insulation product markets has continued in early 2024 as suppliers pass through significantly lower raw materials prices to customers. Consequently, first-quarter organic sales fell for Kingspan’s insulation panels and insulation boards divisions—which together account for approximately 80% of group EBIT—contracting by 9% and 14%, respectively. The first-quarter contraction in selling prices masked modest volume growth for both the insulation panel and insulation board businesses—a resilient outcome given presently soft construction sector conditions.