Forterra (LSE:FORT) said trading conditions remained challenging during the first four months of 2026, with like-for-like revenue falling 11% as UK brick despatches weakened following a wet start to the year. Despite softer demand, the company said its share of the UK brick market remained stable.
The group introduced modest price increases across its brick products to help offset anticipated cost inflation. However, escalating disruption linked to the Middle East crisis has created additional pressure on operating costs, leading Forterra to adjust production schedules and increasing the expected weighting of earnings toward the second half of the year.
To counter rising diesel, transport and gas expenses, the company has implemented surcharges on concrete products and confirmed further brick price surcharges effective from June. Forterra noted that some of the impact from higher energy prices has been mitigated through forward gas purchasing arrangements.
While customer demand has so far remained resilient, management warned that uncertainty has increased due to wider macroeconomic pressures and elevated borrowing costs. Even so, the board said it remains confident that recent investment in production capacity leaves the business well positioned to benefit when construction activity and housing markets recover.
The company’s overall outlook is supported by signs of improving financial performance, including lower leverage levels and stronger cash generation across 2024 and 2025. However, weak technical indicators continue to weigh on sentiment, with the shares trading below major moving averages and broader momentum trends remaining negative. Valuation metrics appear broadly reasonable, while the dividend offers some support, although not enough to offset the current market downtrend.
More about Forterra
Forterra plc is one of the UK’s largest producers of clay and concrete building materials, supplying bricks and related construction products primarily to domestic housing and infrastructure markets. The company serves major UK housebuilders and construction projects, maintaining a significant position within the British brick manufacturing sector.
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