Ibstock revises FY guidance as cost inflation weighs

(Sharecast News) - Building products firm Ibstock said on Wednesday that cost inflation had become more of an issue throughout H1 despite seeing sales volumes in its core business that were "materially above" the prior year. Ibstock said activity levels in its markets had continued to be ahead of the prior year period, reflecting increased demand in residential construction markets.

However, with market recovery more pronounced in new build residential construction markets, average selling prices were adversely impacted by sales mix.

Ibstock said this, combined with "a more competitive market backdrop", has made passing on the full impact of cost inflation "more challenging".

Overall, based on both sales mix and absolute pricing levels, Ibstock expects sales prices in both clay and concrete in H125 to be "broadly in line" with the comparative period.

Whilst it continues to expect market growth in FY25, considering revised assumptions on selling price/mix and the impact of incremental costs associated with network capacity brought back on line this year, Ibstock now expects FY25 adjusted underlying earnings to be between £77.0m and £82.0m.

Chief executive Joe Hudson said: "Despite ongoing uncertainty, we are encouraged by signs of recovery in the UK housing market. As such, we remain committed to taking steps to ensure we are well placed to support customers and benefit from the recovery as it gathers pace.

"Notwithstanding the margin headwinds encountered in 2025, we remain confident that our recent actions alongside our strategic investments leave us well positioned as activity levels continue to pick up."

As of 0745 BST, Ibstock shares were untraded at 194.20p.

Reporting by Iain Gilbert at Sharecast.com