Ibstock (IBST) Trading update summary

Trading performance and market conditions

• Early 2026 saw challenging market conditions and a very wet start, impacting sales volumes and construction activity.

• Clay business sales volumes improved sequentially, with a high single-digit year-on-year increase in April and continued positive trading in May.

• Group maintained brick market share in Q1, despite domestic brick market volumes being down 11% in the first quarter.

• Concrete product volumes remained weak, but improvement is expected as infrastructure project spending cycles progress.

• Group revenues declined approximately 10% for the first four months of 2026 on a like-for-like basis, with annual price increases implemented in February.

Cost management and operational efficiency

• Higher energy and fuel prices led to increased cost inflation, expected to persist into H2 2026.

• Over 85% of energy requirements are hedged for the first three quarters of 2026, with around 80% cover for the full year.

• Focus remains on managing production volumes, inventory, and overheads, while seeking further operational efficiencies.

• Disciplined capital management supports strategic projects and maintains financial stability.

Strategic initiatives and outlook

• Progress continues on strategic projects, including a commercial agreement for calcined clay and commissioning of the Nostell Horizon factory.

• Orderbooks for new projects are beginning to build.

• Board expects full year performance broadly in line with current market consensus, despite ongoing uncertainty from the Middle East conflict.

• Well-invested, efficient, and sustainable manufacturing network positions the group for medium-term growth.