Full Year 2025 Trading Update

In brief · summary, not quotable

Forterra plc reported a strong full-year 2025 trading update, with revenue reaching approximately £386 million, a 12% increase over the prior year, driven by sales volumes. Adjusted EBITDA is in line with market expectations, and adjusted profit before tax and adjusted earnings per share are expected to be ahead, benefiting from margin progression and lower charges. The company made significant progress in debt reduction, with net debt before leases decreasing to around £56 million from £84.9 million in 2024, resulting in leverage of approximately 1x adjusted EBITDA. Despite some moderation in growth rates later in the year, brick despatches outperformed the market, and Forterra remains confident in its position to benefit from long-term structural growth drivers in the housing market.

Full announcement

Select text to share a quote on X · sign in to keep highlights & notes in your FORT notes

Forterra plc (the 'Group'), a leading UK manufacturer of essential clay and concrete building products, provides its post close trading update for the year ended 31 December 2025 ('FY25') ahead of its full year results announcement scheduled for 11 March 2026.

Summary

Revenue of c.£386m, 12% ahead of the prior year (2024: £344.3m)
Adjusted EBITDA in line with market expectations* with margin progression, adjusted PBT and adjusted EPS ahead
Strong progress on debt reduction; net debt before leases of c.£56m (2024: £84.9m) with leverage approximately 1 x adjusted EBITDA

Trading and Results

FY25 revenue totalled c.£386m, 12% ahead of the comparative (2024: £344.3m), driven primarily by sales volumes. As expected, we saw a moderation of quarterly growth rates through the year due to stronger comparatives and Budget related uncertainty. Whilst demand reduced from the levels seen around the middle of the year, brick remained the most resilient of our product lines.

Adjusted EBITDA is expected to be in line with market expectations* with margin progression. Lower interest and depreciation charges benefit adjusted PBT and adjusted EPS, both of which are expected to be ahead of market expectations.

UK domestic brick despatches for the 11 months to November 2025, as reported by the Department for Business and Trade, increased by 6% relative to the prior year, with our own despatches outperforming the wider market led by our exposure to housebuilding, with our brick market share continuing to recover towards historic levels.

We have continued to make strong progress in reducing the Group's indebtedness, with closing net debt before leases decreasing to c.£56m (2024: £84.9m). Leverage calculated on a banking covenant basis is approximately 1 x adjusted EBITDA. Having returned leverage to targeted levels, we will provide further clarity on our future capital allocation priorities with our full year results.

Outlook

Given the timing of the November 2025 Budget being so late in the year, alongside the mid-December 2025 cut in interest rates, it is too early to assess the impact of these events on demand.

Longer term market fundamentals remain attractive with a shortage of housing, a strong desire within Government to address this, and a constrained supply of essential building products. The Board remains confident that our recent investments in new production capacity leave the Group well placed to benefit from the market's structural growth drivers and a sustained recovery when it occurs.

*Company compiled analyst consensus forecasts are for adjusted EBITDA of £61.6m, adjusted PBT of £32.5m and adjusted EPS of 11.8p.

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.