Ibstock Shares Rise Despite Profit Decline

Ibstock plc (LON:IBST) shares rose more than 3% on Wednesday, trading around 152.4p as of 09:20 am, after the U.K. brickmaker reported rising revenues and reaffirmed its full-year profit guidance despite a fall in earnings.

For the six months to June 30, Ibstock posted an 8.6% year-on-year increase in revenue to £193 million, supported by a 13% rise in U.K. brick deliveries. 

However, profit before tax fell 34.5% to £8 million, and adjusted EBITDA slipped 5.8% to £36 million.

The company said margins were temporarily affected by cost inflation and efforts to restore manufacturing capacity amid a recovering new-build residential market. 

“Whilst this has impacted margins in the first half, it will ensure we are able to benefit fully from the recovery as the market progresses,” said Chief Executive Joe Hudson.

Despite the margin pressure, Ibstock maintained its interim dividend at 1.5p per share and reiterated its full-year adjusted EBITDA guidance of £77 million to £82 million.

The Clay division saw revenues rise 12% to £134 million, while Ibstock Futures grew underlying revenues by over 50% and delivered a positive profit contribution.

Hudson added: “With both our core and diversified platforms now substantially in place to meet growing demand, I am confident in our ability to deliver on our medium-term revenue goals.”

The group expects a stronger second half and said pricing should remain stable, with improved operational efficiency and a potential sales mix benefit driving margin recovery.

Key Takeaways

• Group revenues increased to £193 million, driven by volume growth in the Clay division (+12%).
• Despite revenue growth, adjusted EBITDA declined by 5.8% to £36 million, with margins compressed by 280 basis points.
• Concrete division's adjusted EBITDA margin declined by 280 basis points to 9.9%, affected by lower rail infrastructure volumes.
• The company maintained its interim dividend at 1.5p per share, reflecting continued confidence in future prospects.
• Management expects H2 2025 adjusted EBITDA to exceed the comparative period, with full-year guidance of £77-82 million reaffirmed.