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Highlights

  • Ibstock xpects full-year 2025 adjusted EBITDA of GBP 77 - 82 million.
  • The company reports higher core volumes YoY, but pricing and cost pressures continue to impact margins.
  • The company’s ongoing growth projects including Atlas and Nostell Phase 2 remain on track for delivery in 2025.

Ibstock PLC (LSE:IBST), a UK-based manufacturer of building materials, has issued a trading update indicating downward revisions to its full-year 2025 earnings guidance, driven by a combination of increased fixed costs, unfavourable sales mix, and pricing pressure. The company now anticipates full-year adjusted EBITDA in the range of GBP 77 million to GBP 82 million, compared to GBP 79 million in 2024.

The revision comes despite higher sales volumes in the company’s core clay and concrete products businesses, supported by improved activity levels in residential construction. Management noted that first-half volumes are expected to be materially above the same period last year, reflecting ongoing recovery in the UK housing market.

However, Ibstock has faced challenges reactivating previously mothballed capacity across its clay manufacturing network. The reintroduction of production at several sites has resulted in higher-than-anticipated incremental fixed costs in the current year. The company stated that productivity and operational efficiency are ramping up gradually from initially lower levels, contributing to current cost headwinds.

In terms of pricing, the recovery in residential new build activity has led to changes in the product sales mix, negatively impacting average selling prices. Coupled with a competitive trading environment, the company has found it more difficult to pass on full cost inflation to customers. As a result, average selling prices in both clay and concrete are expected to be broadly in line with the first half of 2024.

Production volumes at its Atlas site have been increasing as anticipated, while construction of a new ceramic facades systems factory at Nostell part of Phase 2 of its slips investment remains on schedule for commissioning by the end of 2025.

Commenting on the update, CEO Joe Hudson acknowledged ongoing uncertainty in the operating environment but expressed cautious optimism regarding the outlook for the housing sector. He said the group is taking steps to align capacity and strategy with the expected market recovery, even as short-term margins face pressure.

As of 11 June 2025, Ibstock shares were trading 14.60% lower at GBP 28.20 per share following the release of the trading update