Ibstock lowered its 2026 earnings outlook after clay and brick sales in the third quarter fell short of its expectations, adding pressure to a UK building-products maker facing weaker demand.
The company said sales were 22% below expectations, a comparison with its own forecast rather than a year-over-year decline. Ibstock also cited industry data showing UK brick-market volumes fell about 17% year over year in July and August. Its domestic market share was similar to a year earlier, while average selling prices were broadly in line with expectations.
Ibstock cut production by about 20% from the plan it set at the half-year, citing weaker demand and a need to limit inventory. The lower factory use is expected to reduce adjusted earnings before interest, tax, depreciation and amortization (EBITDA) by about £6 million as fixed costs are spread across fewer products, in addition to the impact of lower sales volumes.
The company now expects full-year adjusted EBITDA in the mid-£40 million range for the year ending Dec. 31, 2026. It said second-half performance would be materially below its previous expectations. In August, Ibstock had forecast a stronger second half than first half and a full-year result near the bottom of its company-compiled analyst consensus range of £59 million to £68 million. First-half adjusted EBITDA was £26 million, down 27.6% from £36 million in the first half of 2025.
Chief Executive Joe Hudson said trading conditions had worsened during the third quarter and remained weak into October, describing them as having “deteriorated sharply.”
Ibstock said the timing of the government’s Your First Home scheme is weighing on near-term demand, while the company said the program could support new-build demand over time. The scheme aims to support about 70,000 first-time buyers, with developers paying participation fees on homes sold through it. The government’s timetable calls for customer pre-registration by the end of December 2026, first customer applications in February 2027 and first property sales in April.
The wider housing outlook offers mixed signals. The Office for Budget Responsibility (OBR) reduced its forecast for cumulative net additions to the UK housing stock by 190,000 compared with March, citing higher interest rates, affordability pressures, weak effective demand and regulatory and fiscal effects. The Ministry of Housing, Communities and Local Government (MHCLG) reported that England’s housing starts rose 20% and completions increased 1% year over year in April-June. Those figures predate Ibstock’s July-September trading period.
Reuters reported on Nov. 2 that Ibstock shares fell 15% to a record low. The Guardian later reported a decline of more than 8%; the reports reflected different price snapshots. Separately, Ibstock expects commissioning of its ceramic façades factory at Nostell to finish by year-end.
