UK's Forterra 2025 revenue slightly beats estimates, announces buyback

Forterra

11/03/2026 07:12

Overview

UK building products maker's 2025 revenue rose 12%, slightly beating analyst expectations

Adjusted EPS and adjusted EBITDA for 2025 beat analyst expectations

Company announced £20 mln share buyback programme for 2026

Outlook

Forterra expects 2026 demand to be similar to 2025, weighted towards the second half

Company expects to recover modest cost inflation through annual pricing negotiations

Forterra expects 2026 adjusted EBITDA to be slightly ahead of 2025

Result Drivers

VOLUME GROWTH - Revenue increase was primarily driven by higher sales volumes, particularly in bricks, with market share recovering to historical levels

OPERATING EFFICIENCY - Profitability benefited from improved operating efficiency, including increased output at Desford factory as both kilns ran simultaneously for the first time

STABLE PRICING AND COST CONTROL - Pricing remained stable and cost inflation was modest, with energy costs managed through forward purchasing and a solar power agreement

Company press release: ID:nRSK1274Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Beat*
GBP 386 mln
GBP 383.07 mln (11 Analysts)
FY Adjusted EPS
Beat
GBP 0.13
GBP 0.12 (11 Analysts)
FY Adjusted EBITDA
Slight Beat*
GBP 61.60 mln
GBP 61.59 mln (11 Analysts)
FY Adjusted EBIT
Beat
GBP 42 mln
GBP 40.40 mln (11 Analysts)
FY Adjusted EBITDA Margin
16.00%
FY EBIT
GBP 29.30 mln
FY EBITDA
GBP 48.90 mln
FY EBITDA Margin
12.70%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the construction materials peer group is "buy"

Wall Street's median 12-month price target for Forterra PLC is GBp220.00, about 33.7% above its March 10 closing price of GBp164.60

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)