10th Oct 2025 09:26
(Alliance News) - Shares in Ibstock PLC fell on Friday after the supplier of bricks and other building products reported "weaker than expected demand" in the UK in recent months.
The stock was down 8.1% to 122.96 pence early Friday in London, having set a new 52-week low of 112.85p at the open. It was the worst performer in the FTSE 250 index, which was down just 0.2%.
Ibstock says a more uncertain near-term backdrop for its core construction markets has caused demand to be weaker than expected, hurting Clay and Concrete revenue during the third quarter.
Both sales volumes and adjusted earnings before interest, tax, depreciation and amortisation are expected to be flat in the second half of 2025, showing no improvement from the first half.
In addition to the lower sales volumes, "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," Ibstock explained.
More positively, Ibstock said it gained market share compared to a year before. It also said its core manufacturing networks achieved "higher levels of productivity and operational efficiency".
The Atlas pathfinder factory continues to make good progress, Ibstock said, and it expects to see "a good uplift in profitability" there as it enters 2026.
Net debt at the year's end is forecast above previous guidance, but Ibstock insisted it has "a robust financial position", with covenanted leverage at two-times, and delivered "a solid Q3 cash performance".
"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," said Chief Executive Officer Joe Hudson. "In spite of this difficult and uncertain market backdrop, the group has continued to make good operational progress and maintain share."
By Tom Waite, Alliance News editor
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