Ibstock earnings dip as expected in 'progressively tougher market'

(Sharecast News) - Building products manufacturer Ibstock reported a drop in full-year earnings on Thursday, in line with revised guidance, in a "progressively tougher market".

In the year to 31 December 2025, adjusted earnings before interest, tax, depreciation and amortisation fell 10% from a year earlier to £71m, in line with the company's revised guidance. Revenue ticked up 2% to £372m.

Ibstock said that after a strong start to the year, conditions became progressively more challenging. In the first and second quarter, the market was up 17% and 10% respectively. In the third quarter, however, growth decelerated to 4% before an actual decline of 2% in the final quarter versus the prior period.

Overall, total market brick volumes were up 6% on the prior year but down around 27% from the recent peak in 2022, to 1.83 billion.

Average selling prices in brick were down a touch on 2024, Ibstock said, reflecting the tough environment and a shift in mix. The company said it saw more growth in wire-cut bricks, which serve new-build residential, while demand for its soft mud bricks exposed to the repair, maintenance and improvement (RMI) and specification markets was more muted.

Chief executive Joe Hudson said: "The 2025 year started well with a solid increase in volumes. The recovery gave way to tougher conditions in the second half, with market uncertainty weighing on demand. Nonetheless, I believe this set of results underscores our resilience and strategic agility against a difficult backdrop.

"I remain confident that underlying market fundamentals remain firmly intact. Ibstock is well-positioned to capitalise on the recovery, currently anticipated to begin in H2 2026, with its market leadership position and its diversified and efficient capacity."

At 1120 GMT, the shares were down 4.5% at 114.80p.

Ibstock