Forterra plc (LSE:FORT) delivered a solid set of results for 2025 despite ongoing challenges in the UK construction sector. Revenue increased by 12.1% during the year, while adjusted EBITDA rose 18.5% and adjusted earnings per share surged 65.8%. The performance was supported by stable pricing across its product range and a recovery in the company’s share of the UK brick market.
Strong cash generation also strengthened the balance sheet, with net debt reduced to £55.7m. This financial improvement enabled the company to significantly increase shareholder returns, with the total dividend rising 106.7% to 6.2p per share.
Operationally, Forterra continued to advance several key capacity expansion projects. The new brick factory at Wilnecote is approaching completion, while both kilns at the Desford facility operated simultaneously for the first time during the year. The company also introduced its Omnia extruded brick slip range, expanding its product offering in the construction materials market.
With leverage returning to more typical levels and capital expenditure expected to ease, the board has revised its capital allocation priorities. As part of this approach, the company plans to return surplus cash to shareholders through a £20m share buyback programme scheduled to begin in 2026. Management expects demand conditions in 2026 to remain broadly similar to those seen in 2025, with EBITDA forecast to increase slightly. The group believes it is well positioned to benefit from any structural recovery in UK housing activity and brick demand.
Overall, the company’s outlook is supported by positive corporate developments and a relatively stable technical backdrop. However, ongoing pressure on profitability and a comparatively high valuation may temper investor expectations. Continued focus on margin management and balance sheet discipline will remain important as the business pursues further growth.
More about Forterra
Forterra plc is one of the UK’s leading manufacturers of essential building materials, with strong positions in clay bricks, concrete blocks and precast concrete flooring. Its product portfolio includes extruded and soft-mud bricks used in residential construction, the well-known London Brick widely found across England’s housing stock, Thermalite aircrete blocks and Bison precast flooring systems. The company serves both the new-build housing market and the repair, maintenance and improvement sector.
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