Ibstock warns on soft market conditions as clay and concrete sales disappoint
Building products manufacturer Ibstock Plc reported weaker-than-expected demand in its core construction markets during the third quarter amid a "more uncertain near-term backdrop".
Ibstock said both clay and concrete revenues were impacted, with second-half sales volumes and adjusted underlying earnings now anticipated to match the first half due to softer market conditions.
The FTSE 250-listed firm also cautioned that full-year net debt was now expected to be above previous guidance, but noted that it still retains "a strong financial position", with covenanted leverage at year-end expected to be around 2x.
Ibstock added that market share in the three months ended 30 September was ahead of the comparative period, based on published industry data, and in line with H1.
"A more uncertain near-term economic and political backdrop has led to a weaker-than-expected demand in both the clay and concrete businesses' core markets during the third quarter. Customers were more cautious as the quarter progressed, with these conditions now assumed to continue through the remainder of the year," said Ibstock.
"In light of the lower levels of market activity and pricing anticipated during the second half, the Board now expects adjusted EBITDA in the second half of the 2025 year to be similar to the level achieved in the first half of the year."
Reporting by Iain Gilbert at Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
