Ibstock profit warning plunges shares by 13%

Ibstock’s shares have plunged by more than 13 per cent after the company issued a profit warning in its latest trading update.

After the announcement, Ibstock’s shares fell from 80.6 pence to about 70.5 pence, according to the London Stock Exchange.

This morning, the building products manufacturer reported that “weak market conditions” through September and October had pushed brick sales 22 per cent below expectations.

To mitigate, Ibstock announced it would cut production by 20 per cent in the third quarter, with EBITDA expected to drop by £6 million.

The Board is also anticipating a significantly weaker second-half performance from Ibstock, with full-year EBITDA set to dip to the mid-£40 million range, lower than previous expectations.

​However, cash generation remains a key priority for the business. The group plans to implement new measures to reduce costs and ease the impact of lower sales and production volumes.

Joe Hudson, chief executive at Ibstock, said: “Trading conditions deteriorated sharply during the third quarter, with weakness continuing into October. We have responded by reducing production to manage inventory, taking further cost action and maintaining tight control of cash. These production decisions create an additional near-term earnings headwind but are necessary to align output with demand.

He added: “We will continue to focus on cash generation and net debt reduction, alongside completing commissioning at Nostell and progressing opportunities to realise value from our asset base. The announced support for first-time buyers is encouraging, although its introduction in April 2027 may weigh on demand in the intervening period. Our market-leading offering and well-invested production base enables us to benefit when activity recovers.’’

For FY25, Ibstock reported a two per cent increase in revenue to £372.1 million, led by new build residential projects. However, its pre-tax profit also dropped by more than 95 per cent to £895,000.

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