Ibstock plc

Revenue was GBP 164.2 million, down from GBP 193.4 million a year earlier, or down 15% reported and about 10% like-for-like. Adjusted EBITDA was GBP 25.7 million versus GBP 35.5 million, and adjusted EPS was 0.7p versus 3p. Clay revenue was GBP 119.9 million, down GBP 13.6 million year on year, with clay EBITDA of GBP 23.4 million and a 19.5% margin; Concrete revenue was GBP 44.3 million, down 26% reported and 11% like-for-like, with EBITDA of GBP 3.7 million and an 8.3% margin. Adjusted free cash flow was an outflow of GBP 22.3 million, net debt was GBP 151.3 million, leverage was 2.5x, and the Board proposed an interim dividend of 0.5p per share. For the second half, management expects stronger adjusted EBITDA than H1, slightly better clay volumes, improved Concrete and Futures performance, and leverage moving toward 2x by year-end; the full-year outturn is expected around the lower end of current market expectations.

Joseph Hudson emphasized that the market remains difficult, with weak housing and RMI demand, but said Ibstock is taking decisive actions on capacity, inventory, costs and pricing. He highlighted market share gains in clay, improving customer engagement, and progress across the five strategic levers: market leadership, new sectors, innovation, efficiencies and strategic optionality. His tone was cautious on the near term but confident on the medium-term opportunity, especially given the company’s asset base, completed capital projects and potential from Nostell, calcined clay and land.

Simon Bedford said the first half reflected lower volumes, fixed-cost absorption from deliberate production and inventory management, and continuing cost inflation, partly offset by about half of the GBP 5 million annualized cost savings from 2025 rightsizing. He noted adjusted free cash flow outflow of GBP 22.3 million, working capital outflow of GBP 17.3 million, CapEx of GBP 15.2 million, and net debt of GBP 151.3 million at 30 June. He said leverage of 2.5x should improve in H2 as cash generation strengthens, with leverage moving toward 2x by the end of 2026, and guided ongoing CapEx of about GBP 20 million to GBP 25 million going forward, including GBP 20 million for sustaining CapEx and GBP 2 million to GBP 3 million of improvement projects.

Analysts focused on second-half margin mechanics, pricing, imports, leverage, Nostell, calcined clay, CapEx, inventory and credit risk. Management said H2 will still have fixed-cost absorption headwinds if bricks production is lower, but pricing should normalize versus cost inflation, Concrete should improve as investments come on line, and Futures/Nostell should begin contributing more. On balance sheet and credit, management said leverage should naturally fall with seasonal trading, they see no major credit issues, and they continue to have good credit insurance; on Nostell and calcined clay, they described strong customer interest but said commercialization timing remains uncertain and discussions may broaden beyond the current counterparty.