Ibstock, the manufacturer of building products and solutions, has seen weaker than expected demand as a more uncertain near-term economic and political backdrop has impacted both the Clay and Concrete businesses’ core markets.
In a trading update for the third quarter of the financial year ending 31 December 2025, Ibstock noted that customers were more cautious as the quarter progressed, with these conditions now expected to continue through the rest of the year.
Market share was ahead of the comparative period, and in line with the first half of the year. However, in light of softer market demand, sales volumes in the second half are now expected to be in line with the first half of the year.
Market dynamics, coupled with a continued shift in sales mix towards new-build residential demand, have also limited Ibstock‘s ability to achieve targeted pricing levels.
In light of the lower levels of market activity, the firm now expects adjusted EBITDA in the second half of 2025 to be similar to the first half of the year.
Joe Hudson, CEO of Ibstock PLC, said: “With clear, long term structural imperatives for residential construction growth, it is disappointing that additional near term headwinds are impacting momentum in our markets in the latter part of the year. In spite of this difficult and uncertain market backdrop, the Group has continued to make good operational progress and maintain share.
“Whilst it remains difficult to predict the pace and timing of market recovery, we will continue to focus on strong execution and progressing our long term strategic growth projects. These initiatives, combined with the increasing contribution from our recent investments, leave us well positioned to benefit as the market returns.”
