Ibstock Full Year Results 2025

Results for the year ended 31 December 2025

Strategic progress in a challenging market. Well positioned for future growth

• Resilient 2025 operating performance and proactive strategic action taken in a progressively tougher market
• Revenue up 2% to £372m (2024: £366m), Adj. EBITDA of £71m (2024: £79m), in line with revised guidance
• Commissioning of Atlas and Nostell continues, enhancing efficiency and growth
• Market share gains in Clay, with diversified ceramic facades capability gaining significant interest
• With market fundamentals intact and major capital expenditure programmes largely complete, we expect an acceleration in free cash flow generation and an improved balance sheet in the medium term to provide optionality on future growth opportunities and shareholder returns.

Adjusted Results¹

Statutory Results

Financial Highlights

• Revenue up 2% to £372m (2024: £366m) led by strong new-build growth in H1. H2 flat YOY
• Clay revenues up 5% to £260m. Concrete revenues of £112m, 5% lower than prior year
• Weighting of new-build residential with weaker RMI demand resulted in average pricing marginally down
• Group Adjusted EBITDA¹ down 10% to £71m (2024: £79m) reflecting cost inflation, adverse product mix and increased costs as capacity reinstated. Given demand dynamics in H2, we right-sized capacity and reduced headcount
• Statutory profit before tax of £1m (2024: £21m), reflected lower trading performance and an exceptional¹ charge of £19 m (2024: £12m)
• Net debt¹ reduced to £120m (2024: £122m) including c.£30m of proceeds from non-core divestments
• Recommended final dividend of 1.5p per share (2024: 2.5p) brings the total dividend for the year to 3p (2024: 4p), representing a 53% pay-out on adjusted earnings per share.

Strategic progress - positioning for medium term growth

• Atlas factory largely complete, delivering lower cost, more efficient capacity
• Nostell investment progressing through commissioning, with good progress on the construction of the UK's most advanced ceramic façade facility
• The review of options for our calcined clay opportunity has progressed well and commercial agreement is well advanced
• As part of our disciplined capital allocation, we took the decision in Q4 to sell surplus land assets and our Forticrete roofing sites, for total consideration of c.£30m
• We continue to look at optionality around our land assets to further strengthen the balance sheet

Outlook

• After a weather impacted start to 2026, residential construction and RMI markets expected to remain challenging in H1
• Current international events in the Middle East are expected to introduce new uncertainty; the Group is well covered with around 80% of its energy needs secured for the 2026 financial year
• Anticipation of some modest year-on-year volume growth in H2 as markets recover, dependent on demand activity gaining momentum in the Spring
• Pricing actions are expected to offset the impact of cost inflation
• Reflecting our current view of a subdued market, we will be actively managing production volumes and inventory which will create a margin headwind for 2026 but benefit overall cash generation
• Improved cash generation provides optionality for future growth and capital returns in the medium term
• The Board remains confident in the medium-term prospects for the business, although the pace and timing of the recovery remain uncertain.

Joe Hudson, Chief Executive Officer, said: