Forterra (FORT) H2 2025 earnings summary

Executive summary

• Revenue grew by 12.1% year-over-year to GBP 386 million, driven by volume growth and outperforming the wider market.

• Adjusted EBITDA increased by 18.5% to GBP 61.6 million, with margin up 90 basis points to 16.0%.

• Net debt reduced to GBP 55.7 million, with leverage at just above 1x adjusted EBITDA.

• Strategic milestones included recommissioning the Wilnecote brick factory and first sales of the Accrington extruded brick slip system.

• Announced a GBP 20 million share buyback and more than doubled the dividend for 2025.

Financial highlights

• EPS rose 66% to 12.6 pence per share year-over-year.

• Full year dividend increased to GBP 0.062 per share, a payout ratio of about 50%.

• Adjusted operating cash flow up 14% to nearly GBP 69 million.

• CapEx fell to GBP 14.5 million, the lowest since 2017.

• Facility headroom of GBP 85 million against a GBP 170 million RCF, committed to June 2028.

Outlook and guidance

• 2026 performance expected to be slightly ahead of 2025, with demand weighted to the second half.

• Announced price increases for 2026 to offset cost inflation and support margins.

• Midterm EBITDA target set at GBP 120 million, supported by strategic projects and operational improvements.

• CapEx for 2026 expected around GBP 15 million, including strategic investments.

• Share buyback program to continue, with leverage target below 1.5x adjusted EBITDA and net debt before leases targeted at GBP 55 million by year-end.