Highlights:

  • Year-to-date revenue reached £336 million, up 16% from £290 million in the prior year.
  • Production at Desford has increased output of extruded bricks, supporting demand after 2025 destocking.
  • H2 adjusted EBITDA is expected to be modestly higher than H1, with net debt projected to decline from mid-year levels.

 

Forterra plc (LSE:FORT), a leading UK manufacturer of clay and concrete building products, has released its trading update for the ten months ending 31 October 2025. The report highlights revenue growth of 16% compared with the prior year and outlines ongoing strategic investments in production capacity and product innovation, positioning the Group for continued market participation.

Revenue Growth and Market Performance

Year-to-date revenue reached £336 million, up 16% from £290 million in the same period last year. Growth has been driven by continued strength in new build housing, while repair, maintenance, and improvement (RM&I) demand remains subdued. Recent months saw a moderation in growth, with revenue rising 10% year-on-year compared with 20.4% in the first half.

Department for Business and Trade figures show domestic brick despatches for the first nine months of 2025 were 10% higher than in 2024, with Forterra’s market share steadily recovering. Brick imports remain relatively flat as a percentage of total consumption, supporting domestic supply conditions.

Production Capacity and Operational Updates

Forterra is actively managing production capacity across its operations to match variable demand. Production at Desford has ramped up as planned, with both kilns now operational, increasing output of extruded bricks and supporting customer requirements following significant destocking in 2025.

Construction at the Wilnecote factory is nearing completion, with commissioning underway. The facility will produce an enhanced range of bricks aimed at the premium commercial and specification markets. At the Accrington facility, the initial range of brick slips is being designed and commissioned, with a launch scheduled shortly. Meanwhile, the previously planned closures of Bison Bespoke and Formpave operations have been completed in line with strategy.

Financial Position and Outlook

Forterra expects net debt before leases to be below the H1 level, with leverage slightly above one times adjusted EBITDA on a banking covenant basis. The Group maintains its guidance, anticipating that second-half despatches and revenues will be similar to the first half, with H2 adjusted EBITDA modestly exceeding H1.

Looking ahead, the Board notes continued economic uncertainty but observes that medium-term fundamentals remain favourable. Housing shortages, government initiatives to increase supply, and constrained production of essential building materials underpin the market environment. Forterra’s investments in new production capacity are expected to position the Group to benefit from a future market recovery.