Ibstock warns on soft market conditions as clay and concrete sales disappoint

(Sharecast News) - Building products manufacturer Ibstock reported weaker-than-expected demand in its core construction markets during the third quarter amid a "more uncertain near-term backdrop". Ibstock said both clay and concrete revenues were impacted, with second-half sales volumes and adjusted underlying earnings now anticipated to match the first half due to softer market conditions.

The FTSE 250-listed firm also cautioned that full-year net debt was now expected to be above previous guidance, but noted that it still retains "a strong financial position", with covenanted leverage at year-end expected to be around 2x.

Ibstock added that market share in the three months ended 30 September was ahead of the comparative period, based on published industry data, and in line with H1.

"A more uncertain near-term economic and political backdrop has led to a weaker-than-expected demand in both the clay and concrete businesses' core markets during the third quarter. Customers were more cautious as the quarter progressed, with these conditions now assumed to continue through the remainder of the year," said Ibstock.

"In light of the lower levels of market activity and pricing anticipated during the second half, the Board now expects adjusted EBITDA in the second half of the 2025 year to be similar to the level achieved in the first half of the year."

Reporting by Iain Gilbert at Sharecast.com