Trading Update.

20 October 2026

Genuit Group plc

Trading Update for the nine months ended 30 September 2026

Continued resilience in a challenging market; Heating business impacted by unusually warm weather

Genuit Group plc ('Genuit', the 'Company' or the 'Group'), the UK's largest provider of sustainable water and climate products and solutions for the built environment, today issues an update on trading for the nine months ended 30 September 2026. The Company will report its full year results for the twelve months ending 31 December 2026 in March 2027.

Financial Performance

·   Revenue for the nine months ended 30 September 2026 of £464.5m was up 3.5% year-on-year on a reported basis and down 4.3% on a like-for-like basis¹, demonstrating resilience in a market where material volume headwinds have been created by macroeconomic conditions including anticipated interest rate increases.

·     Climate Division revenue for the nine months ended 30 September 2026 of £135.2m was up 3.5% year-on-year on a reported basis and down 7.2% on a like-for-like basis. Ventilation has been resilient and is now expected to grow year-on-year in H2 on a proforma basis. However weak volumes in Heating in H1 are being exacerbated in H2 by unseasonally warm weather which has delayed the typical Autumn channel stocking for Adey. Nu-Heat volumes are weak given its RMI exposed end-market, which is being impacted by anticipated interest rate rises.

·     Water Division revenue for the nine months ended 30 September 2026 of £328.5m was up 4.0% year-on-year on a reported basis and down 3.3% on a like-for-like basis, with year-on-year growth in the residential market, supported by balanced price action and a strong performance by the Manthorpe business. In new housebuilding, completion activity has been resilient, although looking forward the sentiment remains challenging. Commercial and Civils markets have remained subdued, as previously flagged. However, AMP8 orders continue to grow and visibility of projects for 2027 is good.

·   Cashflow remains strong with cash conversion above 90% year-to-date and the Group has a strong balance sheet with leverage of 1.5x at end September 2026 and no near-term maturities.

Operational Performance

·     The Group successfully implemented balanced double-digit price increases in May for products affected by significant polymer cost inflation as a result of the Middle East conflict, predominantly in the Residential segment of the Water Division, as demonstrated by the improvement in LFL revenue.  While polymer costs have now stabilised, there remains uncertainty on the cost outlook due to the ongoing situation in the region. The Group will continue to respond quickly to further input cost inflation if required.

·    Previously announced simplification projects (including the integration of two smaller sites acquired with Davidson Holdings into existing Group sites with no loss of capacity) are on track to be successfully completed by December and will generate £4m of cost savings in 2027. We continue to assess further opportunities for simplification.

·    The integration of the Monodraught and Davidson Holdings businesses acquired in 2025 is now complete with both performing well. Monodraught continues to secure record order intake and year-to-date revenue has grown by 7% on a proforma basis.

Full Year Outlook

·    Challenging market conditions have persisted since our interim results in August, and have worsened in some specific markets most notably our Heating businesses due to the unseasonably warm weather and anticipated interest rate rises. As a result of these conditions, the Group now expects full year Underlying Operating Profit to be approximately £84 million².

Joe Vorih, Chief Executive Officer, commented:

"As highlighted at our interim results in August, we expected challenging market conditions to persist for the rest of the year and that has been the case. While the majority of the Group has delivered a resilient performance, conditions have worsened in some specific markets due to unseasonally warm weather and the prevailing economic environment. Against this backdrop, we continue to focus on what we can control, including continued business simplification, cost discipline and the ongoing deployment of the Genuit Business System.

Looking ahead, whilst we expect challenging conditions to continue into the new year, 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."

______________________________________________________________________________
¹ Like-for-like as adjusted for acquisitions and disposals. Current and prior year revenue from Polydeck Limited disposed of 31 March 2026 has been excluded from Water Division revenues 

² Genuit compiled analyst consensus forecasts for 2026 show a range of £608m to £657m of Revenue and £91m to £96m of Underlying Operating Profit

Enquiries:

Genuit Group plc

Joe Vorih, Chief Executive Officer

Tim Pullen, Chief Financial Officer

+44 (0) 1138 315315

Headland Consultancy:

Matt Denham    Telephone: 020 3805 4822

Chloe Francklin Email: [email protected]

About Genuit Group plc

Genuit Group plc is the UK's largest provider of sustainable water and climate management products for the built environment. Genuit's solutions allow customers to mitigate and adapt to the effects of climate change, while meeting evolving sustainability regulations and standards.

The Group delivers its Sustainable Solutions for Growth strategy via two Divisions:

Climate - low carbon heating and cooling systems, and clean and healthy air ventilation.

Water - products and solutions for water distribution, conservation, storage and attenuation.

Genuit's portfolio includes some of the industry's most established and innovative brands, including Polypipe, Nuaire and Adey.

The Group serves built environment markets with strong climate-related growth drivers, primarily in the UK and with an increasing focus on international diversification.