Forterra (FORT) H1 2026 earnings summary

Executive summary

• Delivered resilient performance despite challenging market conditions, with operational and commercial discipline driving margin improvement and selective customer focus.

• Management actions included restructuring, production alignment, and £2 million annual cost savings.

• Brick products outperformed the wider market, supported by commercial excellence and extruded bricks' resilience.

• Continued investment in production capacity at key sites and innovation in brick slips and Omnia system.

• Ongoing £20 million share buyback, with £8.5 million completed in H1.

Financial highlights

• Like-for-like revenue declined 9.3% year-over-year to £168.8 million, mainly due to lower sales volumes.

• Adjusted EBITDA was £27.0 million (down 9.7%), with margin improved by 70bps to 16.0%.

• Adjusted profit before tax fell 12.7% to £14.5 million; adjusted EPS down 12.1% to 5.1p.

• Net debt increased to £74.5 million, leverage at 1.47x EBITDA, remaining under 1.5x.

• Interim dividend declared at 1.7p per share.

Outlook and guidance

• H2 demand expected to mirror H1, with full-year results anticipated in line with consensus (FY2026 adjusted EBITDA consensus: £55.6m, range £53.1m–£57.6m).

• Forecasting remains challenging due to geopolitical and macroeconomic uncertainty.

• 80% of 2026 and 2027 gas needs secured at pre-conflict prices, providing cost certainty.

• Net debt and leverage expected to remain stable at year-end.