Ibstock (IBST) H1 2026 earnings summary

Executive summary

• Delivered resilient H1 performance in a challenging market, with revenue down 15% to £164.2m and adjusted EBITDA down 28% to £25.7m, but gained domestic clay market share and progressed strategic initiatives.

• Statutory loss before tax was £26.6m, driven by lower trading and a £24.7m non-cash impairment on mothballed facilities.

• Active management of capacity, production, inventory, and costs helped mitigate market headwinds.

• Strategic focus on market leadership, innovation, efficiency, and leveraging land/clay reserves for long-term value.

• Anticipates stronger adjusted EBITDA in H2, with full-year results at the lower end of expectations.

Financial highlights

• Group revenue for H1 was £164.2m, down from £193.4m year-over-year; like-for-like revenue down 10%.

• Adjusted EBITDA fell to £25.7m (margin 15.7%), down from £35.5m; adjusted EPS dropped to 0.7p (from 3.0p); interim dividend reduced to 0.5p per share.

• Net debt at June 30 was £151.3m, with leverage at 2.5x (up from 1.9x prior year).

• Adjusted free cash flow outflow of £22.3m, reflecting lower EBITDA and higher working capital.

• Adjusted ROCE declined to 3.5% (from 7.0%).

Outlook and guidance

• H2 adjusted EBITDA expected to be stronger than H1, supported by order intake, operational leverage, and improved performance in concrete and Ibstock Futures.

• Full-year results anticipated at the lower end of market expectations (£59m–£68m); net debt and leverage expected to reduce by year-end, aided by improved cash flow.

• No further price increases planned for H2; pricing actions expected to offset cost inflation.

• Capex for FY 2026 guided at £25–30m as major organic growth projects near completion.