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Investing.com -- SIG plc, a European supplier of specialist insulation and building products, reported flat like-for-like revenue for the third quarter ended Sept. 30, with underlying volumes rising 1%.
The company maintained its full-year underlying operating profit guidance of £30-35 million, in line with consensus expectations of £31.6 million.
Nine-month sales of £1.968 billion represent roughly 75% of full-year consensus expectations.
Pricing pressures offset modest input cost inflation, resulting in a net 1% reduction in prices, consistent with levels seen in the first half of 2025.
Analysts at RBC Capital Markets noted that the fourth quarter is typically seasonally weaker, suggesting full-year sales could be slightly below consensus.
Demand across European construction markets remained subdued, with no signs of a material recovery. Regional performance was mixed.
The UK Interiors segment recorded like-for-like growth of 5% in Q3, down from 8% in the first half. France saw like-for-like declines ease to 2%, while Germany reported a 5% decline, weaker than the first half’s flat performance.
RBC described the UK performance as a “notable highlight” amid continued subdued markets.
SIG said operational initiatives to improve productivity, cost efficiency, and working capital management continued to progress.
The UK Interiors and Benelux businesses benefited from programs introduced in 2024, including material cost actions implemented late last year.
The company noted that productivity and cost initiatives remain a key focus and underpin its unchanged full-year underlying operating profit outlook.
Pim Vervaat, who joined as chief executive officer on Oct. 1, said he had been impressed with the trading performance in challenging market conditions and highlighted the focus on cost and working capital management. He said he plans to share his initial views on the business early in 2026.
RBC Capital Markets reported FY25 consensus expects sales of £2.63 billion, up 0.6% year-on-year, with adjusted EBIT of £31.6 million, up 27% from 2024, and a 1.2% margin.
FY26 consensus anticipates sales of £2.73 billion and adjusted EBIT of £47 million. The brokerage noted that SIG trades on an FY25e EV/EBIT adjusted of 21.5x, falling to 10.3x by FY27e, with negative free cash flow expected until FY27 and no dividend.