Ibstock (IBST) Trading update summary

Executive summary

• Revenue increased 2% year-over-year to approximately £372 million in FY25, despite challenging market conditions in the second half.

• Strategic agility and cost management actions supported resilient performance and robust financial health.

• Major investments in Atlas and Nostell facilities are nearly complete, enhancing efficient and sustainable production capacity.

Financial highlights

• Revenue rose to c.£372 million from £366 million in 2024, a 2% increase year-over-year.

• EBITDA for the full year is expected to be in line with previous guidance.

• Year-end net debt stands at around £120 million, reflecting c.£30 million proceeds from non-core disposals.

• Underlying trading cash flow was in line with guidance.

Outlook and guidance

• Residential construction and RMI markets are expected to remain subdued in the near term, with modest volume growth anticipated in H2 2026.

• Pricing actions are expected to offset cost inflation, but margin headwinds are anticipated in H1 2026 due to active management of production and inventory.

• Improved cash generation and reduced leverage provide flexibility for future growth and capital returns.

• Medium-term prospects remain positive, though timing of recovery is uncertain.