Genuit Group Navigates Subdued Market with Resilient Performance

Genuit Group plc (LON: GEN) has released a trading update for the ten months ended October 31, 2025, showcasing resilience amidst challenging market conditions.

The company, a leading provider of sustainable water, climate, and ventilation products, reported revenue growth and strategic advancements, but cautioned about persistent market headwinds.

For the four months ended October 2025, Genuit's revenue increased by 7.1% on a reported basis and 3.7% on a like-for-like basis compared to the prior year.

This growth underscores the company's ability to gain market share despite a generally sluggish economic environment.

Group revenue for the ten months ended October 31, 2025, reached £511.1 million, up 8.4% on a reported basis and 5.1% on a like-for-like basis compared to £471.7 million in 2024.

The company anticipates full-year underlying operating profit to fall within the range of £92 million to £95 million. This reflects a moderation in market volumes since the first half of the year, primarily due to purchasing uncertainty surrounding the November UK Government Budget and the overall economic outlook.

Underlying operating margins are projected to increase sequentially in the second half of 2025. This improvement is attributed to price increases, productivity gains resulting from the implementation of the Genuit Business System, and other cost-efficiency measures.

Genuit has made significant strategic progress, including the acquisitions of Monodraught and Davidson Holdings in September. These acquisitions are expected to contribute over £55 million of margin-accretive revenue in 2026. The company's strong balance sheet and robust cash generation position it favorably for further strategic capital deployment.

Joe Vorih, Chief Executive Officer, commented: “Genuit has delivered a resilient performance in the second half to date against persistently challenging market conditions, with continued market share gains and increasing margins. We have also made strong strategic progress with the acquisitions of Monodraught and Davidson Holdings.”

Segment Performance Highlights:

Climate Management Solutions (CMS): Revenues increased by 9.0% year-on-year on a reported basis (4.5% on a like-for-like basis) for the four months ended October 2025, reaching £61.9 million. Year-to-date revenues are up 10.4% on a reported basis (6.5% on a like-for-like basis), driven by strong residential ventilation sales.

Water Management Solutions (WMS): Revenues grew by 3.3% year-on-year on a reported basis (0.7% on a like-for-like basis) for the four months ended October 2025, totaling £61.5 million. Year-to-date revenues are up 7.3% on a reported basis (1.8% on a like-for-like basis), supported by the strong performance of Sky Garden's blue-green roof business.

Sustainable Building Solutions (SBS): Revenues increased by 8.5% year-on-year on a reported basis (5.2% on a like-for-like basis) for the four months ended October 2025, reaching £87.8 million. Year-to-date revenues are up 8.1% on a reported basis (6.8% on a like-for-like basis), benefiting from market share gains following a competitor's withdrawal from the UK drainage market.

The recent acquisitions of Monodraught (CMS) and Davidson Holdings (SBS) are expected to contribute approximately £13 million of revenue in Q4 2025. The integration of these businesses is progressing well, with operational and sales synergies anticipated to deliver financial benefits in 2026.

Outlook:

Genuit anticipates that the current subdued market conditions will persist for the remainder of 2025 and into early 2026. This outlook is primarily driven by uncertainty surrounding the potential impacts of the UK Government Budget in November and the prevailing UK economic climate.

The company remains focused on outperforming the broader market by targeting higher-growth segments linked to sustainability, increasing margins through the Genuit Business System, and pursuing further M&A opportunities.