Genuit sees FY at lower end of forecasts amid weak markets, shares fall

(Sharecast News) - Shares in Genuit fell on Friday as the pipe maker said it expected annual operating profit to be at the lower end of estimates after revenues fell in the first four months of the year amid tough markets and uncertainty due to the Iran war.

The company forecast flat underlying operating profit for the first half of 2026 - against 2025's £44.6m - and targeted £4m - £5m of annualised cost savings.

Full-year underlying operating profit would be towards the lower end of current analyst estimates, "assuming a timely resolution of the Middle East conflict and stabilisation in the macroeconomic environment".

Revenue for the four months to April 30 fell 0.4% to £198.5m. Shares in the company were down more than 4% in early London trade.

Genuit said markets were affected by persistent wet weather in January and February, resulting in subdued construction site activity, while the Iran war started to impact in March, including inflation in polymer and freight costs.

"This became more pronounced in April. The group has acted swiftly and implemented double digit price increases in May on affected polymer-based product lines and increased freight charges across the board," Genuit said.

"Whilst there has been some seasonal uptick, volumes in March and April have remained lower than the prior year, with market sentiment adversely affected by the prevailing macroeconomic environment."

Reporting by Frank Prenesti for Sharecast.com

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