Quick Links
Design & Tech Services
© Ibstock Plc. 2026
Ibstock Plc Q3 Trading Update 2026
02 November 2026
Ibstock Plc ("Ibstock" or the "Group"), a leading UK manufacturer of building products and solutions, today issues a trading update for the third quarter of the financial year ending 31 December 2026 (“Q3”) and year to date.
- Industry data reported that UK brick market volumes declined by approximately 17% year on year across July and August. Against this backdrop, the Group’s domestic brick market share in Q3 was consistent year on year, while average selling prices to the market remained broadly in line with expectations.
- Weak market conditions continued through September and October. As a result, (Clay division / brick) sales in Q3 were 22% below expectations. To align output with lower demand and limit inventory build, the Group has reduced production in Q3 by approximately 20% against the plans set out at the half year. Lower fixed-cost absorption is expected to reduce adjusted EBITDA by approximately £6m, in addition to the impact of lower sales volumes.
- The Group has continued to implement cost reduction and cash management initiatives, focused primarily on overhead and discretionary expenditure. These measures will partially mitigate the impact of lower sales and production volumes.
- The combined impact of lower sales and the additional fixed-cost absorption impact of reduced production, partially offset by cost reduction measures, means the Board now expects second-half performance to be materially below its previous expectations. Consequently, full-year adjusted EBITDA is expected to be in the mid-£40 million range.
- The introduction of the Your First Home support scheme represents a welcome and potentially meaningful intervention for the UK housing market, with the potential to improve affordability, stimulate new-build demand and strengthen confidence in future housing supply. While the announcement reinforces confidence in the Group’s medium-term market outlook, the delay to its introduction until April 2027 is disappointing and has put additional pressure on near-term demand.
- The Group is prioritising cash generation through disciplined management of inventory, capital expenditure and discretionary costs. We remain confident that our strategic land assets, including calcined clay, will provide near term support to accelerate debt reduction.
Strategic Progress
Commissioning of the Group’s pioneering ceramic façades factory at Nostell is progressing well and is expected to complete by the end of the year. The facility will broaden the Group’s product offering and, as volumes build, is expected to generate attractive financial returns over the medium term.
Joe Hudson, CEO of Ibstock Plc, said:
‘’Trading conditions deteriorated sharply during the third quarter, with weakness continuing into October. We have responded by reducing production to manage inventory, taking further cost action and maintaining tight control of cash. These production decisions create an additional near-term earnings headwind but are necessary to align output with demand.We will continue to focus on cash generation and net debt reduction, alongside completing commissioning at Nostell and progressing opportunities to realise value from our asset base. The announced support for first-time buyers is encouraging, although its introduction in April 2027 may weigh on demand in the intervening period. Our market-leading offering and well-invested production base enables us to benefit when activity recovers.’’
WE ARE Ibstock
Sign up to our newsletter
© Ibstock Plc. 2026
