Investing.com -- Ibstock shares fell 10% on Monday after the building products manufacturer issued its second profit warning of the year, slashing full-year earnings guidance amid a sharp deterioration in the U.K. brick market.
The company now expects adjusted EBITDA for 2026 to be in the mid-£40m range, significantly below its previous guidance issued on August 5 for adjusted EBITDA at the lower end of the £59-68m company-compiled consensus range. The midpoint of the prior guidance range was £63.5m.
Ibstock warned that second-half profits will be materially below previous forecasts due to weaker demand, reduced production and lower manufacturing capacity utilization.
U.K. brick market volumes fell approximately 17% YoY during July and August, while Ibstock's third-quarter clay and brick sales were 22% below expectations. In response, the group reduced production by around 20% compared with plans made at the half-year stage, resulting in lower fixed-cost absorption that is expected to reduce adjusted EBITDA by approximately £6m.
The trading deterioration comes amid continued weakness in U.K. housebuilding activity, with the delay to the government's Your First Home scheme until April 2027 adding further pressure to near-term demand. Ibstock said it was prioritizing cash generation through tighter management of inventory, capital expenditure and discretionary spending as it adjusts operations to weaker market conditions.
The downgrade follows a difficult first half, when adjusted EBITDA fell 28% to £26m from £36m a year earlier, while revenues declined 15% to £164m.
Original Article
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