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Highlights

  • Sales volumes and revenue in Q1 2025 rose significantly year-on-year, supported by a recovery in new build residential markets.

  • EBITDA margin declined due to inflation and sales mix, but pricing initiatives and factory investments show promise.

  • Full-year guidance maintained, with performance expected to be second-half weighted.

Ibstock Plc, a leading UK building materials manufacturer, reported a encouraging start to 2025, with first-quarter performance boosted by a notable recovery in residential construction demand. In its Q1 trading update, the Group said sales volumes and revenues were “well above” the prior year, aligning with internal expectations and reflecting a relatively soft 2024 comparison.

The recovery in demand was particularly apparent in the new build residential segment, where activity levels showed encouraging growth. While the company acknowledged a more competitive pricing environment, it noted that a disciplined pricing strategy remains in place. Ibstock has begun to see the benefits of price increases implemented toward the end of the quarter, though the sales mix—weighted toward residential—moderated average selling prices in the period.

Despite higher revenue, the Group reported that its EBITDA margin was lower than the previous year, driven by cost inflation outpacing early pricing actions, sales mix impacts, and increased investment across its factory network. 

Progress on Ibstock’s strategic growth projects remains robust. The company highlighted increasing production volumes at its Atlas site and noted that Phase 2 of its investment at Nostell—focused on a new ceramic facades systems facility—is on track for commissioning by the end of the year. These initiatives follow the successful delivery of Phase 1.

Looking ahead, the Group remains cautiously optimistic. While mindful of potential macroeconomic headwinds, Ibstock confirmed that its full-year expectations remain unchanged, with performance expected to be heavily weighted toward the second half of 2025.