Genuit Group plc (LON:GEN), the UK’s largest provider of sustainable water and climate products and solutions for the built environment, has announced its unaudited interim results for the six months ended 30 June 2026.
| Financial Results | H1 2026 | H1 2025 | Change |
| Revenue (£m) | 307.8 | 297.8 | 3.4% |
| Alternative Performance Measures1 | |||
| Underlying operating profit (£m) | 43.9 | 44.6 | (1.6)% |
| Underlying operating margin (%) | 14.3 | 15.0 | (70) bps |
| Underlying profit before tax (£m) | 36.8 | 38.8 | (5.2)% |
| Underlying earnings per share (basic – pence) | 10.5 | 11.6 | (9.5)% |
| Underlying operating cash conversion (%) | 71.3 | 65.1 | 620 bps |
| Leverage (times pro-forma EBITDA2) | 1.6 | 1.0 | 0.6x |
| Statutory Measures | |||
| Operating profit (£m) | 26.2 | 37.5 | (30.1)% |
| Profit before tax (£m) | 19.1 | 31.7 | (39.7)% |
| Earnings per share (basic – pence) | 5.2 | 9.6 | (45.8)% |
| Cash generated from operations (£m) | 37.7 | 34.3 | 9.9% |
| Dividend per share (pence) | 4.2 | 4.2 | – |
1 Alternative performance measures (APMs) are used by the Group to assess the underlying performance of the business. A definition of all the APMs is set out in Note 1 of the interim condensed consolidated financial statements on pages 16 and 17.
2 Pro-forma EBITDA is reconciled in Note 12 on page 23.
Joe Vorih, Chief Executive Officer, said:
“Genuit took decisive and responsible action in the first half of the year in the face of challenging market conditions. We worked with customers to implement price increases in response to cost inflation driven by the Middle East conflict and accelerated the simplification of the business and controlled costs in response to lower market volumes. We have successfully integrated the two acquisitions made in 2025, with both performing as anticipated and commercial synergies from Monodraught ahead of our expectations.
While we expect these challenging market conditions to persist through the rest of the year, margins will benefit from the pricing action taken in the first half, continued cost discipline and the ongoing deployment of the Genuit Business System. Our expectations for the full year remain unchanged.
Looking ahead, Genuit remains well placed in markets with regulatory and sustainability-related growth drivers. Structural tailwinds including the Future Homes Standard, Warm Homes Plan, social housing policies and the AMP8 water spending cycle will increasingly create further opportunities from next year. In addition, simplification initiatives already announced will generate over £4m of operating profit benefit in 2027.”
Financial Highlights
· Half year revenue of £307.8m (H1 2025: £297.8m) increased by 3.4% year-on-year on a reported basis and decreased by 4.8% on a like-for-like basis, representing an improvement in May and June (like-for-like (LFL) for four months to April -8.7%) as double-digit price increases took effect. The first four months were impacted by the Middle East conflict and wet weather earlier in the year.
· Underlying operating profit of £43.9m decreased by 1.6% year-on-year and LFL margin reduced 140bps to 13.7%, with management actions partially reducing the impact of lower trading volumes, cost inflation in March and April before price increases in May and non-recurring operational issues at Adey.
· Reported operating profit of £26.2m (H1 2025: £37.5m) decreased 30.1% year-on-year due to lower underlying profit generation and exceptional items related to business transformation and simplification, which will drive medium-term growth and profit expansion.
· Underlying operating cash generation of £42.8m (H1 2025: £38.7m), representing 71.3% cash conversion (H1 2025: 65.1%), in-line with management expectations and reflects a normal phasing. Full year operating cash conversion is expected to be over 90%, in-line with our medium-term target.
· Underlying basic EPS of 10.5p (H1 2025: 11.6p) reduced by 9.5% year-on-year. Reported basic EPS of 5.2p (H1 2025: 9.6p) reflects the trading environment and investments in business transformation and simplification.
· Leverage increased from 1.0 times at 30 June 2025 to 1.6 times pro-forma EBITDA at 30 June 2026, following two acquisitions in H2 2025, remaining well within target range.
· The Board is proposing an interim dividend per share of 4.2p (H1 2025: 4.2p), reflecting the strength of the balance sheet, the Board’s confidence in medium-term prospects and the Group’s progressive dividend policy.
Divisional Performance
At the end of 2025, Genuit further simplified its structure and now operates as two Divisions: Water Division and Climate Division. The comparatives presented below have been restated on this basis.
· Climate Division
o Revenue up 2.4% to £89.7m and down 8.1% on a LFL basis, with an underlying operating margin of 9.7% on a reported basis (H1 2025: 13.9%) and 8.9% on a LFL basis.
o The Division has substantially offset the impact of cost inflation resulting from the Middle East conflict, with GBS efficiency gains, cost control measures and price action.
o Margin impacted by a slow-moving stock provision of £1.5m and a supplier quality failure with an impact of £0.8m, both within Adey.
o Ventilation markets remain stronger than RMI focused heating markets, with both commercial and residential ventilation sales and orders continuing to be resilient. On a last 12 months basis, ventilation revenue is flat year-on-year with orders up 6% over the same period.
o The Monodraught acquisition has been successfully integrated, including rapid technical integration of controls technology allowing connectivity with Nuaire ranges. The first two commercial orders have been received for schools with combined Monodraught and Nuaire products, with integrated controls and commissioning. Order intake overall has exceeded £2m per month at Monodraught, up from a run rate of £1.4m at acquisition, which is ahead of expectations as the education sector benefits from mobilisation of CF25 contracts.
· Water Division
o Revenue up 4.1% to £217.3m and down 3.3% on a LFL basis, with an underlying operating margin of 16.2% on a reported basis (H1 2025: 15.7%) and 15.7% on a LFL basis.
o The Division has substantially offset the impact of cost inflation resulting from the Middle East conflict, with GBS efficiency gains, cost control measures and responsible price action.
o The Davidson businesses, acquired in September 2025, have been successfully integrated and produced over 20% EBIT margin in H1, exceeding the Group’s medium-term target and resulting in margin accretion on a reported basis. In addition, the acceleration of simplification initiatives including site rationalisation will further improve revenue, operational synergies and margins in 2027.
o Strong commercial progress is being made on AMP8 with over £2m of project orders, including a large project of over £1m for delivery in February 2027. Quotes submitted now exceed £9m.
Strategic and Operational Highlights
Genuit’s Sustainable Solutions for Growth strategy is based on four interconnected and complementary themes.
Growth – Focusing on higher-growth, sustainability-driven markets, via organic growth and disciplined M&A opportunities.
· The breadth of Genuit’s business supported its resilience in H1 2026, with year-on-year growth at Manthorpe, demonstrating through-cycle resilience in its diversified product-set, and in the Group’s Irish and Italian operations, bringing geographical diversification.
· Regulatory and sustainability-related structural growth drivers are providing an increasingly clear view of growth opportunities in 2027 and beyond.
o The AMP8 spending cycle for water companies is gathering momentum. The Water Division now has an active quotations bank of AMP8 projects totalling >£9.0m.
o The final details of the Future Homes Standard, the Warm Homes Plan and the Social and Affordable Homes Plan were announced by the UK Government in H1 2026. These programmes focus on providing lower carbon and healthier higher quality homes, creating tailwinds for our heating and ventilation technologies.
o The Group continues to invest in innovation, including new products and systems for stormwater management, ventilation and controls, supporting customers in meeting evolving regulatory requirements.
Sustainability – Providing the lowest-carbon choice for our customers and maximising exposure to structural growth drivers.
· Continued improvement in scopes 1 & 2 carbon emissions, on a rolling twelve-month basis, to 11,563 tCO₂e (H1 2025: 13,340), strengthening Genuit’s competitive advantage as the lowest carbon provider of choice.
· The Group’s strong position in recyclate use continues, with recycled materials forming 48.6% of polymer inputs (H1 2025: 50.9%), enabling customers to cost-effectively de-carbonise the built environment against the backdrop of increasing virgin polymer costs.
· The Group is driving commercial advantage from the development of Environmental Product Declarations (EPDs) with over three thousand online views on One Click LCA which was accessed by over three hundred end users, in the preceding 6 months, providing greater transparency on the embodied carbon and environmental performance of its products.
Genuit Business System (GBS) – Creating value through lean transformation and operational excellence.
· We continue to deploy GBS, driving improvements in working capital, space utilisation and enabling future growth.
o A Single Minute Exchange of Dies (SMED) kaizen event at Building Products was completed in the first half of 2026, reducing changeover time by 30% while also improving operator safety and product quality and supporting future growth without needing capital investment in the near term.
o A Production Preparation Process (3P) kaizen event at Monodraught was completed in March 2026, reducing needed floorspace by 50% and reducing work in process inventory, while also avoiding cost, to supply the growth in the business without requiring more headcount.
· In H1 2026, over 800 Genuit employees had participated in a targeted GBS kaizen event or training which represents c.25% of our total population. Focus is on scaling knowledge to embed GBS across the entire business.
People and Culture – Creating value and enabling growth through the capability, expertise and development of our employees.
· Continued investment in accredited Earn and Learn programmes for employees, with 19.8% of colleagues in The 5% Club (FY 2025: 18.9%), strengthening our ability to attract and retain talent and maintain a skilled and motivated workforce.
· The Group promoted 67 colleagues during H1 2026 of which 37% were female. The Group welcomed 11 senior leaders in H1 2026 of which 37% were female, reflecting our continued commitment to diversity and inclusion and ensuring that we benefit from a breadth of perspectives.
Outlook
· Challenging market conditions are expected to persist for the rest of the year as a result of the ongoing Middle East conflict and current UK political and economic circumstances.
· Underlying operating margins will benefit in the second half from balanced cost and price management, non-recurrence of Adey’s operational challenges and productivity gains from Genuit Business System projects.
· The Group’s expectations for the full year remain unchanged.
· The Group expects structural growth drivers, including activity related to the Future Homes Standard, Warm Homes Plan, social housing policy and AMP8, to create increasing levels of opportunity from next year. Profitability will also benefit from over £4m of annualised cost savings in 2027.
