Ibstock (LSE:IBST) delivered a resilient full-year performance in 2025 despite a tougher trading backdrop in the second half, with revenue increasing 2% to approximately £372 million. EBITDA and trading cash flow were in line with management guidance, while net debt stayed broadly stable at around £120 million, supported by roughly £30 million of proceeds from disposals of non-core assets.
The group has now largely completed its major capital investment programme at the Atlas and Nostell plants and has taken decisive actions to align costs and capacity with market conditions. These measures included headcount reductions, the disposal of surplus land and the sale of the smaller Forticrete roofing business. Looking ahead, Ibstock plans to actively manage production levels and inventories in response to a subdued housing and repair, maintenance and improvement market. Management has indicated it is prepared to accept some margin pressure in 2026 in order to prioritise cash generation and protect balance sheet strength, which it believes will provide flexibility for future growth initiatives and potential capital returns as demand recovers.
Overall, the company’s outlook reflects a balance between financial resilience and ongoing market challenges. Recent corporate actions have strengthened financial flexibility and strategic positioning, although slower revenue momentum and free cash flow generation remain key areas for investors to monitor, particularly given valuation considerations.
More about Ibstock
Ibstock Plc is a leading UK manufacturer of building products and solutions, operating through two main divisions. Ibstock Clay is the UK’s largest clay brick producer by volume, with 15 factories, associated quarries, and a masonry and prefabricated components operation. Ibstock Concrete supplies concrete walling, flooring, fencing, lintels, and rail and infrastructure products from 11 sites. These core businesses are supported by Ibstock Futures, which focuses on sustainable solutions and Modern Methods of Construction, underpinned by an ESG 2030 strategy targeting a 40% reduction in carbon emissions by 2030 and net zero operations by 2040.
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