Ibstock
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Ibstock (IBST) investor relations material

Ibstock H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary5 Mar, 2026

Executive summary

  • Revenue grew 2% year-over-year to £372 million, with EBITDA at £71 million, down 10% from 2024, reflecting challenging market conditions and inflationary pressures.

  • Delivered resilient performance in 2025 despite deteriorating market conditions, with results in line with revised expectations.

  • Major CapEx projects at Atlas and Nostell completed, and cost actions taken to flex capacity and manage overheads.

  • Market share increased, outperforming the overall brick market, with diversified ceramic facades gaining traction.

  • Generated £30 million cash from land and asset disposals.

Financial highlights

  • EBITDA margin declined by 260 bps to 19.1% due to inflation and higher costs from reactivating clay capacity; H2 margin improved to ~20% as cost actions took effect.

  • Net debt at £120 million, leverage at 2x, with over £100 million in available liquidity and significant covenant headroom.

  • Adjusted EPS fell to 5.7p (2024: 7.7p); dividend per share reduced to 3.0p (2024: 4.0p), payout ratio 53%.

  • Adjusted free cash flow was negative at £9.8 million, impacted by inventory build and lower EBITDA.

  • Return on capital employed at 5.8%, below target, reflecting recent investments and subdued earnings.

Outlook and guidance

  • Challenging market conditions expected to persist in early 2026, with modest improvement anticipated in H2 if demand recovers.

  • Price increases in February 2026 (~3%) expected to offset cost inflation; margin headwind expected in 2026 due to production and inventory management.

  • Medium-term outlook remains positive, targeting £600 million revenue and 28% margin when markets recover.

  • CapEx for 2026 guided at £25–30 million; effective tax rate expected at 26%.

  • Long-term fundamentals remain strong, but near-term demand remains challenging; cautious view maintained.

Update on Calcined clay partner discussions
Impact of inventory management on 2026 margins
Strategy to double infrastructure market share
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Frequently asked questions

The Ibstock plc is an integrated producer of products for construction, the United Kingdom. The Company manufactures and sells clay and concrete building products and solutions primarily in the United Kingdom. Its principal products include clay bricks, brick components, concrete roof tiles, concrete stone masonry substitutes, concrete fencing, pre-stressed concrete, and concrete rail products. Ibstock plc was founded in 1825 and is headquartered in Ibstock, the United Kingdom.

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