Second Quarter Trading Update

Ibstock Plc ("Ibstock" or the "Group"), a leading UK manufacturer of a range of building products and solutions, today issues a trading update.

Trading Update

Activity levels in the Group's markets have continued to be well above the prior year period, reflecting increased demand in residential construction markets. Accordingly, we continue to expect first half sales volumes in the core business to be materially above the prior year level.

As anticipated, we have taken steps to add back productive capacity at several factories in the clay network. Whilst this will ensure the Group is well placed to benefit from the recovery as it gathers pace, it has also led to higher than expected incremental fixed costs in the current year, particularly as productivity and operational efficiency ramp up from initial lower levels at these factories.

With market recovery more pronounced in new build residential construction markets, average selling prices have been adversely impacted by sales mix. 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, we expect sales prices in both clay and concrete in the first half of 2025 to be broadly in line with the comparative period.

Whilst we continue to expect market growth in the 2025 year, considering revised assumptions on selling price/mix and the impact of incremental costs associated with network capacity brought back on line this year, we now expect full year 2025 adjusted EBITDA to be in the range of £77 million to £82 million (2024: £79 million).

Progress on our key organic growth projects remains on track, with production volumes at Atlas increasing during the period, as expected. Building on the successful completion of Phase 1 of our slips investment at Nostell, good progress is being made with Phase 2, the construction of a larger ceramic facades systems factory, which remains on schedule for commissioning by year-end. These projects, together with the significant investment in our core business over recent years, leave the Group well positioned to support the significant unmet demand for new build housing in the UK.

Joe Hudson, CEO Ibstock PLC, commented:

"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."