Ibstock PLC (LSE:IBST) shares fell after the brickmaker said it expects profits to be around 10% lower than last year, as trading conditions got tougher in the second half of last year.
Revenue for 2025 will come in around £372 million, up 2% on the previous year, the FTSE 250-listed group said, with EBITDA to be circa £71 million, down from £79 million in 2024.
While 2025 started well, "market uncertainty led to progressively tougher conditions through H2," said chief executive Joe Hudson.
"Against this backdrop, our performance underscores our resilience and strategic agility. Whilst market dynamics remain uncertain, Ibstock is in robust financial health, with decisive action taken to manage costs and near-term capacity," he said.
Analyst Clyde Lewis at house broker Peel Hunt said revenues looked 3% below his estimate, with EBITDA in line with consensus.
The outlook for volumes is subdued in the first half before a modest recovery is expected in the second, with pricing expected to offset cost inflation.
With production volumes to be managed lower, Lewis said it gives the group a plant overhead recovery issue.
This led to him cutting his 2026 EBITDA forecast by £12 million and 2027 by circa £10 million, resulting in his PBT estimates dropping from £39 million to £29 million for FY26 and from £51 million to £42 million for FY27.