AGM Trading Update

Ibstock Plc ("Ibstock" or the "Group"), a leading UK manufacturer of building products and solutions, announces a trading update for the period from 1 January 2026 to 30 April 2026, ahead of its Annual General Meeting (AGM), which is to be held at 12:00pm today.

Joe Hudson, Chief Executive Officer, commented:

"Following challenging market conditions in the early months of 2026, including a very wet start to the year, we have seen a promising improvement in sales volumes in our clay business, with the Group successfully maintaining market share.

"Whilst we are mindful of the potential impact of the Middle East conflict, the Board believes recent activity levels support the Group's capability to deliver a full year outturn broadly in line with current market consensus expectations. Further, with a well invested, lower-cost, more efficient and sustainable manufacturing network, Ibstock is well positioned to deliver growth in the medium term."

Trading update

The UK residential construction market continued to experience challenging conditions in the early part of the year, with domestic brick market volumes down 11% in the first quarter and relatively weak volumes for our concrete products linked to the private residential and RMI markets.

Following a weather impacted January and February, we have seen sequential improvement including a high single-digit year-on-year increase in brick volumes in April, and a continuation of positive trading in May. Against this backdrop, the Group maintained brick market share in Q1 in line with 2025. Despite a slower start in Concrete, given the spending cycle for certain infrastructure projects, we are confident that we will see an improvement in this business in the coming months. Overall, Group revenues were down approximately 10% for the first 4 months of the year on a like for like basis, with annual price increases implemented at the beginning of February.

As the duration and full extent of impacts arising from the Middle East conflict remain uncertain, we are mindful of the potential effects on consumer confidence and the wider UK economy. This challenging backdrop is likely to continue in the near term, albeit we continue to see the potential for some improvement in H2. Higher energy and fuel prices have resulted in increased cost inflation which is likely to extend into the second half of 2026. We have taken steps to mitigate this where possible, and are hedged for over 85% of energy requirements for the first three quarters of 2026, with around 80% cover for the full year.

The Group remains acutely focused on managing production volumes, inventory levels and overheads, along with identifying further operational efficiencies. Focused and disciplined capital management has enabled us to progress strategic projects alongside maintaining the Group's financial position. As indicated in March, we are working with a preferred partner towards a commercial agreement for calcined clay and the Nostell Horizon factory is commissioning as planned, with orderbooks beginning to build.

Whilst mindful of uncertainty, the Board believes recent activity levels support the Group's capability to deliver a full year outturn broadly in line with current market consensus expectations. While, the pace and timing of the recovery remain uncertain, Ibstock is well positioned to respond quickly to improving market conditions.

Jos Bieneman