Ibstock Reports Improved Trading Conditions for First Quarter of 2025

TRADING CONDITIONS improved in the first quarter of 2025 for Ibstock Plc compared to the same quarter last year.

The company attributes the improvement to increased demand in new build residential construction markets and a relatively weak comparative in 2024.

Sales volumes and revenues across the core business were in line with the business’s expectations and well above the prior year.

Ibstock says it has seen a more competitive pricing environment in some areas of the market, and continues to take a disciplined approach to pricing.

Price increases introduced towards the end of the first quarter are now coming through for the company. However, as market recovery was more pronounced in new build residential markets, Ibstock reports “selling prices in the period were adversely impacted by the sales mix”.

The company’s overall EBITDA margin percentage in Q1 was below the prior year, reflecting the impact of cost inflation ahead of pricing actions taken, sales mix and additional costs invested in its factory network “to support the significant unmet demand for new build housing in the UK”.

These investments include increases in production volumes at Atlas and the full automation of its brick slips factory at Nostell, near Wakefield. ‘Good progress’ is being made with Phase 2 at Nostell, the construction of a larger ceramic facades systems factory, on schedule to operate by year-end.

Improved Trading Conditions

Joe Hudson, CEO of Ibstock Plc, said: “The Group has made a solid start to the year against a backdrop of improving market conditions. Sales volumes in the core business were well ahead in the first quarter, reflecting improved demand but also a relatively weak comparative in 2024. We continue to maintain both a tight focus on costs and our disciplined approach to pricing.

“We continue to expect trading momentum to build through the year and have made targeted investment in our network to ensure we can service our customers’ needs. With our growth projects on track, and having completed a programme of investment in our factory network over recent years, we remain well-placed to respond to the significant unmet demand for new homes in the UK.”

Ibstock’s quarterly trading update points to “broader macroeconomic uncertainties”, but says its full year expectations are unchanged, with performance weighted towards the second half of the year.

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