Ibstock (IBST) Trading Update summary

Market performance and trading update

• Activity levels remain well above prior year, driven by increased demand in residential construction markets.

• First half sales volumes in the core business are expected to be materially higher than the previous year.

• Sales prices in both clay and concrete are anticipated to be broadly in line with the comparative period, despite a more competitive market and adverse sales mix.

• Full year 2025 adjusted EBITDA is now expected to be in the range of £77 million to £82 million, compared to £79 million in 2024.

• Incremental fixed costs have risen due to the reactivation of factory capacity, impacting margins as productivity ramps up.

Strategic initiatives and investments

• Productive capacity has been added back at several clay network factories to capitalize on market recovery.

• Progress continues on key organic growth projects, with increased production at Atlas and ongoing construction of a larger ceramic facades systems factory at Nostell.

• Recent investments position the Group to support unmet demand for new build housing in the UK.

Company overview and ESG commitments

• Ibstock operates two main divisions: Ibstock Clay and Ibstock Concrete, with a focus on sustainable solutions and modern construction methods.

• The ESG 2030 Strategy targets a 40% reduction in carbon emissions by 2030 and net zero operations by 2040.

• Ibstock Futures, established in 2021, accelerates growth in new construction segments and sustainable solutions.