Kingspan scraps plans to list data centre division

Core profit at the business has more than doubled over the past five years to €197 million

Kingspan has shelved plans to list a minority stake in its data centre-focused ADVNSYS division, concluding that keeping the business wholly owned offered the best route to long-term value creation as global demand for data storage continues to surge.

The Irish building materials group had been working since September on a potential Amsterdam IPO of around 25% of ADVNSYS, with a listing provisionally pencilled in for the first quarter of 2026. The unit designs and manufactures bespoke critical infrastructure- including ventilation, daylighting and modular systems- largely for data centres.

But this morning (Wednesday) Kingspan said discussions with investors over recent months had been overwhelmingly positive, underscoring confidence in ADVNSYS’ growth prospects.

Core profit at the business has more than doubled over the past five years to €197 million, fuelled by the rapid expansion of AI-driven data centre infrastructure, and the group expects EBITDA to approach €300 million this year.

Since first flagging the potential flotation, Kingspan said momentum has strengthened further, with the business now expected to at least double core profit over the next four to five years. That outlook is underpinned by a robust order book, significant new manufacturing capacity coming on stream and continued opportunities for organic growth and bolt-on acquisitions.

Chief executive Gene Murtagh said that while investor appetite for an IPO had been strong, the company believed greater value would be created by allowing ADVNSYS to continue compounding its growth within the group. Kingspan will therefore retain full ownership and continue to report the unit as a distinct segment.

““We have been very pleased with investor appetite in respect of ADVNSYS and, in light of that interest, and given current momentum and outlook, our considered view is that retaining full ownership of this fast growing business is the optimum route to maximise value for our stakeholders,” CEO Gene Murtagh said in a statement.

He added that the process of exploring a potential IPO had been “beneficial” in highlighting ADVNSYS’ standing as a global leader in bespoke critical infrastructure solutions, both “in its own right, to support structural growth in the data sector, and in complementing Kingspan solutions to mitigate climate impacts in energy intensive sectors. We are excited about the future growth trajectory of ADVNSYS within the Kingspan Group,” he said.

The group plans to host a capital markets day in the US later this year to outline its broader strategy and growth ambitions in more detail.

Kingspan shares were down 4.4% in early trading following the announcement.