Ibstock plc (LSE:IBST) reported full-year 2025 results on Thursday that were broadly in line with expectations, though analysts cautioned that slower volume growth and near-term trading challenges could weigh on performance in 2026.
Shares in the UK building materials group dropped more than 5% during trading in London following the update.
The company had previously released preliminary figures for 2025 showing revenue of £372m and adjusted EBITDA of £71m, both broadly consistent with market forecasts. Adjusted earnings per share reached 5.7 pence, slightly ahead of the 5.6 pence analysts had anticipated.
However, cash flow generation and shareholder distributions were weaker than expected. Free cash flow was negative £17m, while the company declared a dividend of 3 pence per share, below the market expectation of 3.9 pence.
Analysts at RBC Capital Markets said the results pointed to a slower start to the year. “Current trading has been below expectations due to weather,” the analysts noted, adding that adverse conditions had weighed on demand early in 2026.
The brokerage also indicated that consensus forecasts for 2026 earnings may come under pressure as analysts revise down volume assumptions. Growth expectations are now likely to move closer to flat levels rather than the previously anticipated 2%–3% increase. As a result, consensus adjusted EBITDA could fall into the high £60m range, compared with current estimates of roughly £75m.
Even with these revised expectations, analysts warned that risks remain. RBC said another downgrade, a heavier second-half earnings weighting and energy cost exposure “is unlikely to be well received,” adding that the company’s outlook will depend heavily on a recovery in demand during the spring selling season.
Pricing conditions have remained relatively stable. Clay brick prices increased by about 2% to 3% following adjustments introduced in February, while the company has hedged approximately 80% of its energy requirements for 2026, with stronger coverage in place for the first three quarters of the year.
Net debt stood at around £120m at the end of the period, broadly unchanged compared with the previous year, supported by roughly £30m generated from asset disposals.
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