Full Year 2025 Trading Update
Summary by AI BETAClose X
22 January 2026
FORTERRA PLC
Full Year 2025 Trading Update
Adjusted EBITDA in line with expectations
Forterra plc (the 'Group'), a leading UK manufacturer of essential clay and concrete building products, provides its post close trading update for the year ended 31 December 2025 ('FY25') ahead of its full year results announcement scheduled for 11 March 2026.
Summary
· Revenue of c.£386m, 12% ahead of the prior year (2024: £344.3m)
· Adjusted EBITDA in line with market expectations* with margin progression, adjusted PBT and adjusted EPS ahead
· Strong progress on debt reduction; net debt before leases of c.£56m (2024: £84.9m) with leverage approximately 1 x adjusted EBITDA
Trading and Results
FY25 revenue totalled c.£386m, 12% ahead of the comparative (2024: £344.3m), driven primarily by sales volumes. As expected, we saw a moderation of quarterly growth rates through the year due to stronger comparatives and Budget related uncertainty. Whilst demand reduced from the levels seen around the middle of the year, brick remained the most resilient of our product lines.
Adjusted EBITDA is expected to be in line with market expectations* with margin progression. Lower interest and depreciation charges benefit adjusted PBT and adjusted EPS, both of which are expected to be ahead of market expectations.
UK domestic brick despatches for the 11 months to November 2025, as reported by the Department for Business and Trade, increased by 6% relative to the prior year, with our own despatches outperforming the wider market led by our exposure to housebuilding, with our brick market share continuing to recover towards historic levels.
We have continued to make strong progress in reducing the Group's indebtedness, with closing net debt before leases decreasing to c.£56m (2024: £84.9m). Leverage calculated on a banking covenant basis is approximately 1 x adjusted EBITDA. Having returned leverage to targeted levels, we will provide further clarity on our future capital allocation priorities with our full year results.
Outlook
Given the timing of the November 2025 Budget being so late in the year, alongside the mid-December 2025 cut in interest rates, it is too early to assess the impact of these events on demand.
Longer term market fundamentals remain attractive with a shortage of housing, a strong desire within Government to address this, and a constrained supply of essential building products. The Board remains confident that our recent investments in new production capacity leave the Group well placed to benefit from the market's structural growth drivers and a sustained recovery when it occurs.
*Company compiled analyst consensus forecasts are for adjusted EBITDA of £61.6m, adjusted PBT of £32.5m and adjusted EPS of 11.8p.
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ENQUIRIES |
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Forterra plc |
+44 1604 707 600 |
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Neil Ash, Chief Executive Officer |
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Ben Guyatt, Chief Financial Officer |
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FTI Consulting |
+44 203 727 1340 |
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Richard Mountain / Nick Hasell |
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