Trading Update
Summary by AI BETAClose X
11 November 2025
FORTERRA PLC
Full year guidance maintained
Forterra plc, "the Group" a leading UK manufacturer of essential clay and concrete building products, provides this trading update for the ten-month period ended 31 October 2025.
Summary
|
· |
YTD revenue of £336m, 16% ahead of the prior year (£290m) |
|
|
|
|
· |
New build housing demand remains stronger than the depressed RMI market |
|
|
|
|
· |
H2 despatches and revenue expected to be at similar levels to H1 |
|
|
|
|
· |
Full year guidance maintained; H2 adjusted EBITDA expected to be modestly ahead of the H1 figure |
Current Trading
Tougher prior year comparatives along with a recent moderation of demand from the run rates seen around the middle of the year have resulted in year on year revenue growth over the last four months reducing to 10% relative to the 20.4% reported in H1. New build housing continues to be our strongest market segment with RM&I remaining depressed. Accordingly, we continue to benefit from our greater exposure to extruded or wire cut bricks over soft mud.
Department for Business and Trade figures show that domestic brick despatches for the nine-month period to September 2025 were 10% ahead of the 2024 comparative, with our own brick market share continuing to recover toward longer term norms. Brick imports remain subdued, and whilst ahead of the prior year, remain flat as a percentage of overall consumption.
We continue to actively manage our production capacity with demand varying significantly by product type. Production continues to ramp up as planned at Desford, with both kilns now operational, increasing our output of extruded bricks and ensuring we continue to meet customer demand following a significant destocking during 2025. Elsewhere, we expect to continue managing output as we retain our discipline in matching production to demand.
Our financial position continues to strengthen and we anticipate that year-end net debt before leases will be below H1, with leverage a little above one times adjusted EBITDA on a banking covenant basis.
Strategic Progress
Construction at our Wilnecote factory is nearing completion, with commissioning underway and the first bricks expected to be produced ahead of the year end. Wilnecote will offer an enhanced range of bricks for the premium commercial and specification market, increasing our exposure to this attractive segment.
We have also made good progress in designing and commissioning the initial range of brick slips from our innovative Accrington facility with the initial range due to be launched shortly.
The previously announced closures of our Bison Bespoke and Formpave operations have been executed in accordance with our plans.
Outlook
We anticipate that H2 despatches and revenues will be at similar levels to H1. Consistent with our previous guidance, H2 adjusted EBITDA is expected to be modestly ahead of the H1 figure.
Whilst we remain mindful of the continued economic uncertainty and the impact it is having on current demand, the medium-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 a future recovery of our markets.
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
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 2 hours ago ASOS
- 3 hours ago MJ Gleeson
- 3 hours ago Rolls-Royce Holdings
- 3 hours ago Crest Nicholson Holdings
- 4 hours ago Naked Wines