Ibstock (LSE:IBST) said challenging conditions in the UK residential construction market, combined with weather-related disruption, resulted in an estimated 10% decline in like-for-like revenue during the first four months of 2026. Despite the weaker backdrop, the company maintained its share of the UK brick market and reported that brick volumes increased by a high single-digit percentage in April compared with the previous year, with positive momentum continuing into May.
Management noted that higher energy and fuel costs continued to place pressure on operating expenses, although the impact was partly offset through hedging measures and disciplined management of production levels, inventory and overhead costs. The group said ongoing uncertainty surrounding the Middle East conflict and the timing of a broader market recovery remains a factor, but current trading trends still support expectations for full-year results to come in broadly in line with market forecasts.
Ibstock also expressed confidence that performance within its concrete division should strengthen later in the year as infrastructure spending programmes gather pace, despite a relatively subdued opening to 2026. Alongside this, the company continues to progress several strategic projects aimed at supporting long-term growth and improving manufacturing efficiency.
These initiatives include the commissioning of its Nostell Horizon factory and collaboration with a preferred partner on a commercial calcined clay agreement. The company said the projects align with its strategy to expand sustainable manufacturing capabilities and improve responsiveness when construction demand in the UK market recovers.
The group’s broader outlook continues to be weighed down by weaker financial performance over recent years, including declining revenues, lower profitability and negative free cash flow in 2025. Technical indicators also remain weak, with the share price trading below key moving averages and negative momentum signals persisting. However, management pointed to expectations for a second-half recovery in 2026 and lower capital expenditure as supportive factors, although margin pressure, return on capital employed and working-capital challenges remain areas of focus.
More about Ibstock
Ibstock Plc is one of the UK’s leading manufacturers of building materials and construction solutions. The business operates through its Ibstock Clay and Ibstock Concrete divisions, producing products including clay bricks, walling systems, flooring, fencing, lintels and infrastructure components. Through its Ibstock Futures division, launched in 2021, the company is also focused on sustainable construction technologies and modern building methods, supported by ESG targets that include a 40% reduction in carbon emissions by 2030 and achieving net zero by 2040.