Shares in Ibstock PLC (LSE:IBST) fell 8% on Friday after the brick and building materials maker said demand in its core markets had weakened during the third quarter, leading to a lower profit outlook for the rest of the year.
The company said uncertainty in the economic and political backdrop had hit sales across both its clay and concrete divisions, with customers becoming more cautious as the quarter progressed. Sales volumes in the second half of the year are now expected to match those in the first, rather than improving as previously hoped.
Despite the slowdown, Ibstock said its factories had operated more efficiently and delivered solid cash generation. Adjusted earnings for the second half are now expected to be similar to those achieved in the first six months of 2025.
Chief executive Joe Hudson said the group had maintained market share and continued to make “good operational progress” despite “difficult and uncertain” trading conditions.
The company added that its Atlas pathfinder and Nostell ceramics factories are progressing well and should boost profitability in 2026, while its calcined clay project remains on track.
The shares fell 10.62p to 123.18p.