Manufacturer Reports Weaker than Expected Demand in Clay and Concrete

IBSTOCK REPORTS weaker than expected demand in both the Clay and Concrete businesses’ core markets.

In a trading update for the third quarter of the financial year ending 31 December 2025 and the year to date, the building products and Forticrete roof tile manufacturer says the result is due to an uncertain near-term economic and political backdrop.

Customers were “more cautious” as the quarter progressed and that’s expected to continue through the remainder of the year. Market share in the third quarter remained in line with the first half of 2025 as did sales volumes.

The update adds that market dynamics, coupled with the continued shift in sales towards new-build residential, have limited Ibstocks’ ability to achieve targeted pricing levels.

Productivity and Efficiency

Meanwhile, the Group’s core manufacturing networks operated at higher levels of productivity and operational efficiency in the third quarter.

The company is focussing on cash management, with tight control of capital expenditure, working capital and discretionary spend. This has enabled a solid cash flow in the third quarter

Strategic Progress

Ibstock’s £64m Atlas factory in Walsall is reported as making “good progress” on reliability and quality and multiple new products also progressing well through final commissioning. Next year will see the factory move out of commissioning and into brick production, contributing to profitability at Atlas.

The commissioning of a new ceramics facades factory in Nostell is also said to be progressing well and is an important source of diversified growth for the Group over the medium term.

The company’s calcined clay project is on track and with R&D and testing now complete, discussions are underway with potential partners to explore value creation opportunities. Ibstock is now assessing proposals and expects to be able communicate further on these by early spring.

Weaker Demand

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.”

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