Ibstock Cuts 2026 Profit Guidance as Brick Demand Slumps

Ibstock (LON: IBST), the UK maker of clay bricks and concrete building products, cut its full-year adjusted EBITDA guidance to the mid-£40 million range today, and its shares fell sharply in early trading. Adjusted EBITDA is profit before interest, tax, depreciation and one-off items.

The shares stood at 74.3p by 9.10am in delayed trading, down 6.35p or 7.87% from Friday’s close of 80.65p. They opened at 70p and touched 69.05p, below the 71.5p 52-week low set on the 25th of September.

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The new range came in a Q3 trading update published at 7am. Sharecast reported that at the half-year results on the 5th of August, guidance sat at the lower end of a £59m to £68m range compiled by the company.

Ibstock blamed demand. Industry brick volumes fell about 17% in July and August, according to industry data cited in the update, and Clay division sales in the third quarter were 22% below expectations. Its market share was consistent and selling prices broadly in line.

Ibstock also cut third-quarter production by about 20% against half-year plans, to avoid building up stock. Spreading factory overheads over fewer bricks, known as lower fixed-cost absorption, takes about £6m off adjusted EBITDA on top of the lost volume. Overhead and discretionary savings only partly offset that, and the board expects the second half to be materially below previous expectations. For comparison, first-half adjusted EBITDA was £26m, down from £36m.

The shares closed Friday about 14% below their 94.05p close on the 30th of July. Chief executive Joe Hudson said the government’s first-time buyer support, the Your First Home scheme, is not due until April 2027.

The announced support for first-time buyers is encouraging, although its introduction in April 2027 may weigh on demand in the intervening period.

Joe Hudson, chief executive, Ibstock

Ibstock’s statement called the delay disappointing. Broker Peel Hunt cut its target price to 110p from 125p but kept its Buy rating, Proactive Investors reported, and lowered its 2026 EBITDA forecast by 25% to £44m.