Ibstock shares fell victim to concerns about the wider economy on Tuesday, despite releasing a reasonably upbeat sales performance for 2025.
The UK brick maker reported revenues up 2% to approximately £372 million for the year ended 31 December 2025, compared with £366 million in 2024. Full-year EBITDA is expected to be in line with previous guidance.
Market share for the eleven months to November was ahead of the comparative period.
It appears Ibstock is doing everything it can to deliver returns for shareholders, but if overall construction is falling, there’s not much it can do to boost sales.
“Ibstock shares slipped 5% this morning as management signalled a tougher margin backdrop into 2026, suggesting profit expectations may need to be adjusted down,” Aarin Chiekrie, equity analyst, Hargreaves Lansdown, said
In a sign of Ibstock’s ongoing struggles, total brick market volumes of around 1.85 billion bricks remained materially below the 2.5 billion recorded in 2022.
“Whilst market dynamics remain uncertain, Ibstock is in robust financial health, with decisive action taken to manage costs and near-term capacity,” CEO Joe Hudson said.
While investors may be concerned about the UK economy’s short-term performance, they may be more encouraged by the firm’s preparations for future growth.
Major investment projects at the Atlas and Nostell factories are largely complete, providing significant, more efficient capacity for wirecut bricks and ceramic facades. Both facilities will move from commissioning into production during 2026.
The company has also made progress on its calcined clay opportunity, with preferred partner selection and commercial agreement expected to be finalised in the first half of 2026.
Ibstock took action in the fourth quarter to strengthen its balance sheet, selling surplus land assets and its Forticrete roofing sites. The relatively small roofing category will not meaningfully impact future financial performance, the company said.
Although Ibstock expects residential construction and repair, maintenance, and improvement markets to remain subdued in the near term, some modest year-on-year volume growth is anticipated in the second half as markets recover.
“Market uncertainty ahead of the later-than-usual UK Budget last year kept a lid on construction starts, ultimately causing Ibstock to downgrade its cash profit guidance to around £71mn in October,” Chiekrie said.
“While the market hasn’t picked up since, a tight grip on costs and some disposals of non-core assets mean that the previously downgraded profit target looks well within reach when full-year results are announced in March.”