AGM Trading Update
Summary by AI BETAClose X
19 May 2026
FORTERRA PLC
AGM Trading Update
Ahead of our AGM, which will be held today at 12.00pm, Forterra plc (the 'Group'), a leading UK manufacturer of essential clay and concrete building products, provides a trading update for the four-month period ended 30 April 2026 ('the Period').
Trading conditions in the Period remained challenging, although there has been some improvement following the particularly wet start to the year. On a like for like basis, adjusting for the closure of the non-core businesses in the second half of 2025, revenue in the Period decreased by 11% relative to the prior year.
Domestic industry brick despatches for the first quarter, as published by the Department for Business and Trade, show an 11% reduction relative to the prior year. Our brick market share remains in line with the levels seen towards the end of 2025.
As anticipated, low to mid single-digit brick price increases, sufficient to recover the levels of cost inflation envisaged at the time, were successfully implemented in the first quarter.
However, the ongoing crisis in the Middle East has created further challenges for our business, with additional cost inflation driven by significant increases in the cost of diesel, transport services and natural gas. The impact of the increased cost of gas is however mitigated by our forward purchasing strategy, with around 80% of our requirements for the remainder of the year secured at pre-crisis pricing.
Whilst our forward purchasing of gas insulated us from the higher prices in March, we have rescheduled some production from April until the second half of the year in order to manage our gas cost. Assuming market conditions allow, we plan to recover this production in the second half of the year, which will increase the second half weighting of our full-year result.
In response to this additional cost inflation, we have implemented surcharges on our concrete products and announced brick pricing surcharges to take effect from 1 June 2026.
Whilst events in the Middle East and the associated macro-economic and supply chain risks do not appear to have materially impacted demand for our products to date, we remain mindful as to the potential impact of higher borrowing costs on demand for housing and therefore our products. With the elevated uncertainty we presently face, forecasting how the second half of the year will evolve has become more challenging, leading to a greater range of potential full year outcomes than previously anticipated.
The Board remain confident that following our recent investments in new production capacity, the Group remains well placed to capitalise when our markets return to growth.
ENQUIRIES
Forterra plc +44 1604 707 600
Neil Ash, Chief Executive Officer
Ben Guyatt, Chief Financial Officer
FTI Consulting +44 203 727 1340
Richard Mountain / Victoria Hayns
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