REG - Ibstock PLC - Third Quarter Trading Update

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RNS Number : 8225C  Ibstock PLC  10 October 2025

10 October 2025

LEI: 2138003QHTNX34CN9V93

 

Ibstock Plc

 

Third Quarter Trading Update

 

Ibstock Plc ("Ibstock" or the "Group"), a leading UK manufacturer of a diverse
range of building products and solutions, today issues a trading update for
the third quarter of the financial year ending 31 December 2025 and the year
to date.

 

 ·    A more uncertain near term backdrop in the Group's core construction markets
      has led to weaker than expected demand, with an associated impact on both Clay
      and Concrete revenues during the third quarter.
 •    Market share in the third quarter based on published industry data was ahead
      of the comparative period, and in line with the first half of the 2025 year.
      However, in light of softer market demand, sales volumes in the second half
      are now expected to be in line with the first half of the year, with
      continuing weighting towards new build residential customers
 •    Core manufacturing networks operated at higher levels of productivity and
      operational efficiency in the third quarter, with performance improving in
      line with our expectations.
 •    In light of the lower levels of market activity and anticipated pricing, the
      Board now expects H2 2025 adjusted EBITDA to be similar to the first half of
      the year.
 •    Continued focus on cash management delivered a solid Q3 cash performance, with
      the Group retaining a robust financial position.

 

Trading Update and Outlook

 

A more uncertain near-term economic and political backdrop has led to a weaker
than expected demand in both the Clay and Concrete businesses' core markets
during the third quarter. Customers were more cautious as the quarter
progressed, with these conditions now assumed to continue through the
remainder of the year. Market share in the third quarter based on published
industry data was ahead of the comparative period, and in line with the first
half of the 2025 year. However, in light of softer market demand, sales
volumes in the second half are now expected to be in line with the first half
of the year. Market dynamics, coupled with the continued shift in sales mix
towards new-build residential demand, have also limited the Group's ability to
achieve targeted pricing levels.

 

The Group's core manufacturing networks operated at higher levels of
productivity and operational efficiency in the third quarter, in line with our
expectations.

A focus on cash management, with tight control of capital expenditure, working
capital and discretionary spend enabled the Group to deliver a solid cash flow
performance in the third quarter. As a consequence, whilst net debt at the end
of the 2025 year is expected to be above previous guidance, the Group retains
a strong financial position with covenanted leverage at year-end expected to
be around 2 times.

 

We will continue to act with agility around network utilisation, in light of
anticipated demand, ensuring that we balance the need for operational
flexibility with a focus on financial efficiency and capital returns.

In light of the lower levels of market activity and pricing anticipated during
the second half, the Board now expects adjusted EBITDA in the second half of
the 2025 year to be similar to the level achieved in the first half of the
year.

Strategic Progress

Our Atlas pathfinder factory continues to make good progress, with reliability
and quality advancing and multiple new products progressing well through final
commissioning.  As we move into 2026, out of commissioning and into
production, we expect to see a good uplift in profitability at Atlas.

The commissioning of our pioneering ceramics facades factory in Nostell is
also progressing well. This will serve to meet pressing UK building needs. We
remain committed to developing innovative and sustainable ways to build the
future and believe that modern construction markets represent an important
source of diversified growth for the Group over the medium term.

Our calcined clay project is on track and with R&D and testing now
complete, we are having discussions with potential partners to explore value
creation opportunities. We are now assessing proposals and expect to be able
communicate further on the direction of these by the time of our 2025 full
year results.

Joe Hudson, CEO of Ibstock PLC, said:

"With clear, long term structural imperatives for residential construction
growth, it is disappointing that additional near term headwinds are impacting
momentum in our markets in the latter part of the year.  In spite of this
difficult and uncertain market backdrop, the Group has continued to make good
operational progress and maintain share.

"Whilst it remains difficult to predict the pace and timing of market
recovery, we will continue to focus on strong execution and progressing our
long term strategic growth projects. These initiatives, combined with the
increasing contribution from our recent investments, leave us well positioned
to benefit as the market returns."

 

Investor Event: As indicated at the time of our 2025 Interim Results, the
Group will be hosting a site visit for investors at its Atlas factory on
December 8(th). Details to follow.

 

- Ends -

 

Enquiries to:

 

 Ibstock plc             01530 261999
 Joe Hudson

 Chris McLeish

 Simon Bedford

 Citigate Dewe Rogerson  020 7638 9571
 Claire de Groot

About Ibstock Plc

ibstock Plc is a leading UK manufacturer of building products and solutions,
backed by design and technical services that comprises two core divisions:

 

Ibstock Clay: The leading manufacturer by volume of clay bricks sold in the
UK, with 15 manufacturing sites served by 15 active quarries. Ibstock
Kevington provides masonry and prefabricated component building solutions,
operating from four sites.

 

Ibstock Concrete: A leading manufacturer of concrete roofing, walling,
flooring and fencing products, along with lintels and rail &
infrastructure products. The concrete division operates from 13 manufacturing
sites across the UK.

 

Both divisions are complemented by Ibstock Futures, which was established in
2021 to accelerate growth in new segments of the UK construction market and
focuses on even more sustainable solutions and Modern Methods of Construction
(MMC) from two main locations.

 

The Group's ESG 2030 Strategy sets out a clear path to address climate change,
improve lives and manufacture materials for life, with an ambitious commitment
to reduce carbon emissions by 40% by 2030 and become a net zero operation by
2040.

 

Further information can be found at www.ibstock.co.uk
(https://www.ibstock.co.uk/)

 

Forward-looking statements

 

This announcement contains "forward-looking statements". These forward-looking
statements

include all matters that are not historical facts and include statements
regarding the intentions, beliefs or current expectations of the directors. By
their nature, forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances that are difficult to predict
and outside of the Group's ability to control. Forward-looking statements are
not guarantees of future performance and the actual results of the Group's
operations. Forward-looking statements speak only as of the date of such
statements and, except as required by applicable law, the Group undertakes no
obligation to update or revise publicly any forward-looking statements.

 

Notes:

The information contained within this announcement is deemed by the Group to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014 which is part of domestic UK law pursuant to the Market
Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ("UK MAR"). Upon the
publication of this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public domain.

 

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