Genuit Group plc (LSE:GEN) reported full-year results ahead of market expectations, with underlying operating profit reaching £94.4 million despite difficult trading conditions. The stronger-than-anticipated performance lifted the company’s share price by around 8.7%.
The UK’s largest supplier of sustainable water and climate management products generated revenue of £602.1 million for the year ended 31 December 2025. This represented a 7.3% increase compared with the previous year and a 3.2% rise on a like-for-like basis, although the figure came in slightly below analyst forecasts.
Underlying operating profit rose 2.4% year on year to £94.4 million, roughly 2% above consensus estimates that had been positioned toward the lower end of management’s guidance range of £92 million to £95 million. The result was achieved despite a notable slowdown in like-for-like sales during the fourth quarter, when UK construction activity softened ahead of the government’s November budget announcement.
Underlying earnings per share increased 5.7% to 26.0 pence. The company also proposed a final dividend of 8.7 pence per share, bringing the total dividend for the year to 12.9 pence, representing a 3.2% increase compared with the prior year.
Chief Executive Officer Joe Vorih said: “Genuit has again demonstrated its ability to grow and outperform in challenging markets. Against a backdrop of subdued market activity, we delivered organic revenue growth, driven by the adoption of new solutions in structurally attractive segments and targeted market share gains.”
The group’s underlying operating margin declined by 70 basis points to 15.7%, reflecting higher costs linked to increases in National Insurance contributions and the National Living Wage. However, margins improved during the second half of the year, reaching 16.4%, which was 140 basis points higher than in the first half.
Among the company’s divisions, Climate Management Solutions recorded the strongest growth, with revenue rising 10.7% to £178.9 million. Water Management Solutions revenue increased 5.3% to £169.5 million, while Sustainable Building Solutions generated revenue of £246.8 million, up 6.5%.
Genuit also completed two acquisitions during the year, purchasing Monodraught for £55.6 million in August and Davidson Holdings for £49.0 million in September. Both transactions were financed using existing debt facilities. As a result, net debt to underlying pro-forma EBITDA rose to 1.5 times at the end of the year, compared with 0.9 times in 2024.
The company said market conditions remained subdued toward the end of the year and into early 2026. Prolonged wet weather affected construction activity at building sites during January and February. Management noted “some positive signs on order intake” early in the year but did not provide quantitative guidance for the 2026 financial year.
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