REG - Forterra plc - Full Year 2025 Trading Update

ForterraAnnouncement

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RNS Number : 8534P  Forterra plc  22 January 2026

22 January 2026

FORTERRA PLC

 

Full Year 2025 Trading Update

 

Adjusted EBITDA in line with expectations

 

Forterra plc (the 'Group'), a leading UK manufacturer of essential clay and
concrete building products, provides its post close trading update for the
year ended 31 December 2025 ('FY25') ahead of its full year results
announcement scheduled for 11 March 2026.

 

Summary

 

·    Revenue of c.£386m, 12% ahead of the prior year (2024: £344.3m)

 

·    Adjusted EBITDA in line with market expectations* with margin
progression, adjusted PBT and adjusted EPS ahead

 

·    Strong progress on debt reduction; net debt before leases of c.£56m
(2024: £84.9m) with leverage approximately 1 x adjusted EBITDA

 

Trading and Results

 

FY25 revenue totalled c.£386m, 12% ahead of the comparative (2024: £344.3m),
driven primarily by sales volumes. As expected, we saw a moderation of
quarterly growth rates through the year due to stronger comparatives and
Budget related uncertainty. Whilst demand reduced from the levels seen around
the middle of the year, brick remained the most resilient of our product
lines.

 

Adjusted EBITDA is expected to be in line with market expectations* with
margin progression.  Lower interest and depreciation charges benefit adjusted
PBT and adjusted EPS, both of which are expected to be ahead of market
expectations.

 

UK domestic brick despatches for the 11 months to November 2025, as reported
by the Department for Business and Trade, increased by 6% relative to the
prior year, with our own despatches outperforming the wider market led by our
exposure to housebuilding, with our brick market share continuing to recover
towards historic levels.

 

We have continued to make strong progress in reducing the Group's
indebtedness, with closing net debt before leases decreasing to c.£56m (2024:
£84.9m). Leverage calculated on a banking covenant basis is approximately 1 x
adjusted EBITDA. Having returned leverage to targeted levels, we will provide
further clarity on our future capital allocation priorities with our full year
results.

Outlook

Given the timing of the November 2025 Budget being so late in the year,
alongside the mid-December 2025 cut in interest rates, it is too early to
assess the impact of these events on demand.

Longer 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 the market's structural growth drivers and a sustained recovery when it
occurs.

 

*Company compiled analyst consensus forecasts are for adjusted EBITDA of
£61.6m, adjusted PBT of £32.5m and adjusted EPS of 11.8p.

 

 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 / Nick Hasell

 

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