Forterra trade remains "challenging" as Mideast crisis adds headwinds

(Alliance News) - Forterra PLC shares sank on Tuesday after it noted a fall in like-for-like revenue for the first four months of this year, and said forecasting for the short-term future "has become more challenging".

The stock was down 5.9% at 141.00 pence per share on Tuesday in London.

Ahead of its annual general meeting at midday, the clay and concrete product manufacturer said trading conditions "remained challenging" in the four months ended April 30, with revenue down 11% on an annual like-for-like basis.

However, it noted that 2026 had a "particularly wet start," followed by "some improvement".

Forterra also noted that, according to figures from the Department for Business & Trade, domestic industry brick dispatches for the first quarter decreased 11% on-year. It said its brick market share remained in line with late-2025 levels.

Northampton, England-based Forterra said that during the first quarter, it implemented low to mid single-digit brick price increases, which were sufficient to recover the levels of cost inflation expected at the time.

However, it said it experienced further price inflation, namely "significant increases in the cost of diesel, transport services and natural gas," as "the ongoing crisis in the Middle East" created "further challenges".

Forterra said it mitigated the impact of gas price inflation with its "forward purchasing strategy," which provided insulation from March's higher prices, but it has rescheduled some April production for the second half of this year to further manage costs.

Additionally, Forterra has implemented concrete product surcharges and said new brick pricing surcharges will take effect from June 1.

"Whilst events in the Middle East and the associated macro-economic and supply chain risks do not appear to have materially impacted demand for our products to date, we remain mindful as to the potential impact of higher borrowing costs on demand for housing and therefore our products," Forterra continued.

It added that forecasts for the second half of this year have "become more challenging" due to "the elevated uncertainty we presently face". It said the range of potential outcomes, for 2026 as a whole, is now "greater...than previously anticipated."

"The board remain confident that following our recent investments in new production capacity, the group remains well placed to capitalise when our markets return to growth," Forterra said.

By Emma Curzon, Alliance News reporter

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