Ibstock (IBST) Trading Update summary

Trading performance and financials

• Adjusted EBITDA for Q3 was broadly in line with expectations, with resilient margins supported by cost and price management.

• Sales volumes remained similar to the prior year, and cash flow performance met expectations due to tight control of capital expenditure and working capital.

• Full year adjusted EBITDA guidance remains unchanged from the half-year outlook.

Market trends and outlook

• Early signs of improvement in new build residential activity were observed, but a sustained recovery in demand is expected to take time.

• Improving affordability and positive UK housing policy developments are anticipated to support medium-term recovery in house building.

Strategic investments and operations

• Selective reinvestment in clay and concrete divisions is underway to restore capacity in response to improving demand.

• The new Atlas factory, producing the UK's first externally-verified carbon neutral brick, is ramping up and will reach full capacity soon.

• The Nostell brick slips investment's first phase is operational, with the second phase progressing and expected to deliver 50 million slips annually.