REG - Forterra plc - Trading Update

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RNS Number : 9552G  Forterra plc  11 November 2025

11 November 2025

FORTERRA PLC

 

Full year guidance maintained

 

Forterra plc, "the Group" a leading UK manufacturer of essential clay and
concrete building products, provides this trading update for the ten-month
period ended 31 October 2025.

 

Summary

 

 ·         YTD revenue of £336m, 16% ahead of the prior year (£290m)

 ·         New build housing demand remains stronger than the depressed RMI market

 ·         H2 despatches and revenue expected to be at similar levels to H1

 ·         Full year guidance maintained; H2 adjusted EBITDA expected to be modestly
           ahead of the H1 figure

 

Current Trading

 

Tougher prior year comparatives along with a recent moderation of demand from
the run rates seen around the middle of the year have resulted in year on year
revenue growth over the last four months reducing to 10% relative to the 20.4%
reported in H1. New build housing continues to be our strongest market segment
with RM&I remaining depressed. Accordingly, we continue to benefit from
our greater exposure to extruded or wire cut bricks over soft mud.

 

Department for Business and Trade figures show that domestic brick despatches
for the nine-month period to September 2025 were 10% ahead of the 2024
comparative, with our own brick market share continuing to recover toward
longer term norms. Brick imports remain subdued, and whilst ahead of the prior
year, remain flat as a percentage of overall consumption.

 

We continue to actively manage our production capacity with demand varying
significantly by product type. Production continues to ramp up as planned at
Desford, with both kilns now operational, increasing our output of extruded
bricks and ensuring we continue to meet customer demand following a
significant destocking during 2025. Elsewhere, we expect to continue managing
output as we retain our discipline in matching production to demand.

 

Our financial position continues to strengthen and we anticipate that year-end
net debt before leases will be below H1, with leverage a little above one
times adjusted EBITDA on a banking covenant basis.

 

Strategic Progress

 

Construction at our Wilnecote factory is nearing completion, with
commissioning underway and the first bricks expected to be produced ahead of
the year end. Wilnecote will offer an enhanced range of bricks for the premium
commercial and specification market, increasing our exposure to this
attractive segment.

 

We have also made good progress in designing and commissioning the initial
range of brick slips from our innovative Accrington facility with the initial
range due to be launched shortly.

 

The previously announced closures of our Bison Bespoke and Formpave operations
have been executed in accordance with our plans.

 

Outlook

 

We anticipate that H2 despatches and revenues will be at similar levels to H1.
Consistent with our previous guidance, H2 adjusted EBITDA is expected to be
modestly ahead of the H1 figure.

 

Whilst we remain mindful of the continued economic uncertainty and the impact
it is having on current demand, the medium-term market fundamentals remain
attractive with a shortage of housing, a strong desire within government to
address this, and a constrained supply of essential building products. The
Board remains confident that our recent investments in new production capacity
leave the Group well placed to benefit from a future recovery of our markets.

 

ENQUIRIES

 

Forterra plc                +44 1604 707 600

Neil Ash, Chief Executive Officer

Ben Guyatt, Chief Financial Officer

 

FTI Consulting          +44 203 727 1340

Richard Mountain / Victoria Hayns

 

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