Forterra (FORT) AI Stock Analysis

• Market Cap: £344.99M
• Dividend Yield: 2.13%
• Average Volume (3M): 584.64K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.38
• Revenue Growth: 15.99%
• EPS Growth: 96.05%
• Country: UK
• Employees: 1,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.05
• Shares Outstanding: 212,803,390
• 10 Day Avg. Volume: 901,442
• 30 Day Avg. Volume: 584,640
• PEG Ratio: -7.65
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 8.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £219.50
• Price Target Upside: 23.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): £395.68M

• Rating: 62 Neutral
• Price Target: 174.00 p ▼(-1.92% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by moderately improving financial performance (deleveraging and stronger 2024–2025 cash flow) but is held back by clearly weak technicals, with the stock trading below all key moving averages and bearish momentum readings. Valuation is fair and the dividend provides modest support, but not enough to overcome the current downtrend.

Positive Factors

Deleveraging / Stronger Balance Sheet

Forterra has reduced total debt into 2025 while equity rose to ~£234.5m, indicating improving leverage and balance-sheet resilience. This deleveraging increases financial flexibility to invest in plants, handle cyclical downturns, and supports longer-term operational stability.

Recovery in Cash Generation

Free cash flow recovered from a 2023 trough to around £43.8m in 2025, showing the business can convert earnings to cash when conditions normalize. Durable cash generation supports capex for capacity, deleveraging, and shareholder returns over the medium term.

Essential Building-Materials Franchise

Forterra supplies essential, per-unit building materials (bricks, blocks) to a broad construction supply chain. This diversified customer base and necessity of products provide enduring demand exposure to UK housing and construction activity, underpinning steady structural revenue streams.

Negative Factors

Cash Flow Volatility

Although FCF rebounded, working-capital swings and timing created a pronounced 2023 trough and weak conversion in 2024. Persistent volatility in cash conversion risks funding operations, dampens predictability of reinvestment or debt paydown, and complicates multi-period planning.

Choppy Revenue & Weaker Margins

Top-line has been uneven across recent years and margins have not recovered to pre-2023 peaks, implying limited operating leverage. This choppiness reduces earnings visibility, constrains margin expansion potential, and makes profitability more sensitive to construction cycles and input-cost swings.

Higher Debt vs Earlier Periods

Although leverage improved into 2025, debt remains meaningfully above 2021–22 levels, limiting headroom for large investments or aggressive share returns. Elevated structural indebtedness increases refinancing and interest-rate exposure during downturns, constraining strategic optionality.

Forterra Business Overview & Revenue Model

Company Description

Forterra plc manufactures and sells masonry products in the United Kingdom. It operates through three segments: Bricks, Blocks, and Bespoke Products. The company offers bricks; aircrete and aggregate blocks; and bespoke products comprising precast concrete flooring, concrete block paving, and chimney and roofing components, as well as other building products under the London Brick, Butterley Brick, Ecostock, Cradley, Thermalite, Conbloc, Bison Precast, Jetfloor, Red Bank, and Formpave brand names. It serves builders' merchants, residential homebuilders, specialized brick merchants, contractors, and subcontractors. The company was incorporated in 2016 and is headquartered in Northampton, the United Kingdom.

How the Company Makes Money

Forterra makes money primarily by manufacturing and selling building materials to customers in the UK construction supply chain. Key revenue streams include (1) clay bricks: revenue from the sale of facing and engineering bricks used in new-build housing and other construction, and (2) concrete products: revenue from the sale of concrete blocks and related concrete building products used in structural and non-structural applications. The company typically earns revenue on a per-unit basis (e.g., per brick or per block/pallet) under supply arrangements with housebuilders, contractors, and builders’ merchants, with volumes and pricing influenced by UK construction activity and housing starts. Additional factors that can contribute to earnings include product mix (higher-value specialist bricks vs. standard products), manufacturing efficiency and capacity utilisation at plants, and pass-through/management of input costs such as energy and raw materials. Specific material partnerships or customer concentration details are null.

Forterra Financial Statement Overview

Summary

Moderate fundamentals with improving momentum: profitability has remained positive post-2020 but is below the 2022 peak and slightly lower in 2025 vs. 2024. Balance sheet leverage is manageable and improving with debt reduction into 2025, and cash flow rebounded strongly in 2024–2025 (2025 FCF ~£43.8m), though cash conversion has shown meaningful volatility (notably the 2023 trough).

Income Statement

Profitability has recovered from the 2020 loss, with positive net income sustained through 2021–2025. However, the earnings profile is less robust than earlier years: net income is far below the 2022 peak (and slightly lower in 2025 vs. 2024), while revenue has been choppy—down materially in 2023, roughly flat in 2024, and modestly higher in 2025. Margins in 2023–2024 are positive but notably below 2021–2022 levels, indicating weaker operating leverage in the current cycle.

Balance Sheet

Leverage looks manageable and improving recently: total debt declined from 2023 to 2025, and equity increased to ~£234.5m in 2025. Debt relative to equity was moderate in 2023–2024 (about 0.64x to 0.54x) and is likely improving with the 2025 debt reduction, supporting balance-sheet resilience. The main watch-out is that debt rose meaningfully versus 2021–2022 levels, so financial flexibility is not as strong as it was earlier in the period.

Cash Flow

Cash generation is generally solid, highlighted by a sharp rebound from negative operating and free cash flow in 2023 to strong positive levels in 2024 and 2025 (2025 free cash flow ~£43.8m). That said, cash flow volatility is a key risk: 2023 was a clear trough, and 2024 showed relatively weak conversion of operating cash flow and free cash flow versus net income, suggesting working-capital or timing impacts can meaningfully swing results.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	386.00M	344.30M	346.40M	455.50M	370.40M
Gross Profit	128.20M	103.00M	100.70M	160.70M	128.40M
EBITDA	61.00M	54.70M	58.30M	91.40M	76.50M
Net Income	17.00M	17.50M	12.80M	58.80M	45.50M
Balance Sheet
Total Assets	417.10M	442.40M	444.70M	397.60M	350.00M
Cash, Cash Equivalents and Short-Term Investments	6.10M	15.20M	16.00M	34.30M	41.50M
Total Debt	81.50M	121.00M	133.40M	58.00M	17.10M
Total Liabilities	182.60M	217.50M	236.90M	177.10M	115.20M
Stockholders Equity	234.50M	224.90M	207.80M	220.50M	234.80M
Cash Flow
Free Cash Flow	43.80M	16.60M	-53.00M	31.50M	33.30M
Operating Cash Flow	58.30M	42.20M	-20.00M	75.60M	68.20M
Investing Cash Flow	-14.50M	-25.60M	-33.80M	-41.20M	-20.00M
Financing Cash Flow	-52.90M	-17.40M	35.50M	-41.60M	-38.20M

Forterra Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 177.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FORT, the sentiment is Negative. The current price of 177.4 is below the 20-day moving average (MA) of 182.36, below the 50-day MA of 181.61, and below the 200-day MA of 185.42, indicating a bearish trend. The MACD of -5.55 indicates Positive momentum. The RSI at 27.87 is Positive, neither overbought nor oversold. The STOCH value of 24.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FORT.

Forterra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRC	74 Outperform	£1.42B	12.13	6.07%	―	32.27%	―
MBH	72 Outperform	£74.34M	11.41	5.71%	5.35%	-0.29%	-33.41%
BREE	69 Neutral	£1.17B	5.07	7.90%	4.47%	7.83%	-7.40%
MSLH	68 Neutral	£361.91M	38.43	2.91%	4.18%	1.31%	10.19%
FORT	62 Neutral	£344.99M	23.01	6.91%	2.13%	15.99%	96.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IBST	48 Neutral	£413.66M	179.13	3.10%	2.39%	5.58%	66.49%

Forterra Corporate Events

Forterra Delivers Strong 2025 Results and Launches £20m Share Buyback

Forterra reported a strong 2025 performance despite challenging UK construction markets, with revenue up 12.1%, adjusted EBITDA up 18.5% and adjusted EPS up 65.8%, supported by stable pricing and a recovery in brick market share. Robust cash generation cut net debt to £55.7m and underpinned a 106.7% increase in the total dividend to 6.2p per share.

Strategically, the group advanced major capacity projects, with its Wilnecote factory nearing completion, both Desford kilns running together for the first time and the new Omnia extruded brick slip range launched. With leverage back to normalised levels and capex easing, the board has updated capital allocation priorities and will return surplus capital via a £20m share buyback starting in 2026, while guiding that 2026 demand should mirror 2025 and EBITDA edge slightly higher, positioning the company to benefit when UK housing and brick demand recover structurally.

The most recent analyst rating on (GB:FORT) stock is a Buy with a £216.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra Trust Buys More Shares to Support Employee Incentive Schemes

Forterra’s Employee Benefit Trust has purchased 75,000 ordinary shares at an average price of £1.8585, as part of a previously announced monthly share acquisition programme. Following this latest transaction, the Trust holds 2,522,867 shares, representing 1.19% of Forterra’s voting rights, underscoring the company’s ongoing commitment to employee share ownership and incentive schemes.

The move incrementally increases the pool of shares available for existing and future awards under Forterra’s share plans, potentially strengthening alignment between employees and shareholders over time. While the transaction is modest in scale, it continues a structured programme that may gradually influence the company’s capital base and the distribution of voting power among investors.

The most recent analyst rating on (GB:FORT) stock is a Buy with a £216.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra Employee Trust Adds to Stake with Ongoing Share Purchases

Forterra’s Employee Benefit Trust has continued its ongoing share purchase programme, acquiring 75,000 ordinary shares at an average price of £1.9556 on 16 January 2026. This transaction forms part of a planned schedule of monthly purchases and is intended to provide shares to satisfy awards under the company’s various employee share schemes.

Following this latest acquisition, the Trust now holds 2,475,867 ordinary shares in Forterra, representing 1.15% of the company’s current voting rights. The move underscores Forterra’s commitment to employee incentivisation and equity participation, aligning staff interests with shareholders and potentially supporting long-term retention and performance.

The most recent analyst rating on (GB:FORT) stock is a Buy with a £216.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra Employee Benefit Trust Adds to Stake Under Ongoing Share Purchase Programme

Forterra’s Employee Benefit Trust has continued its previously announced share purchase programme, with Apex Financial Services (Trust Company) Limited, acting as trustee, buying 75,000 ordinary shares at an average price of £1.8037 on 2 January 2026. Following this transaction, the Trust now holds 2,401,899 ordinary shares, equivalent to 1.13% of Forterra’s current voting rights, reinforcing the company’s commitment to employee share ownership and aligning staff incentives with shareholder interests.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £220.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra lifts 2025 revenue and cuts debt as brick demand outperforms UK market

Forterra reported a 12% rise in full-year 2025 revenue to about £386m, driven mainly by higher sales volumes, with brick products singled out as the most resilient line. Adjusted EBITDA is expected to be in line with market forecasts, while lower interest and depreciation charges should push adjusted profit before tax and earnings per share ahead of expectations, and net debt has been cut sharply to around £56m, bringing leverage down to about one times adjusted EBITDA; the board plans to outline future capital allocation priorities alongside the full-year results and remains confident that recent capacity investments leave the group well positioned to benefit from structurally strong UK housing demand once market conditions improve.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £220.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra Employee Benefit Trust Increases Stake Through Share Purchase

Forterra plc has disclosed that its Employee Benefit Trust has acquired 75,000 ordinary shares at an average price of £1.7967 as part of a previously announced monthly share purchase programme. The trust now holds 2,326,899 ordinary shares, representing 1.09% of the company’s voting rights, and these shares are intended to satisfy awards under Forterra’s employee share schemes, underscoring the company’s ongoing commitment to staff incentives and alignment of employee interests with shareholder value.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £220.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.

Forterra Employee Benefit Trust Acquires Additional Shares for Staff Incentive Plans

Forterra plc has reported that its Employee Benefit Trust (EBT), administered by Apex Financial Services (Trust Company) Limited, purchased 75,000 ordinary shares of 1p each on 2 January 2026 at an average price of £1.8478 per share. The EBT now holds 2,251,899 ordinary shares, representing 1.06% of the company’s current voting rights, to be used primarily to satisfy awards under Forterra’s employee share schemes, underscoring the company’s ongoing commitment to equity-based staff incentives and alignment of employee and shareholder interests.

The most recent analyst rating on (GB:FORT) stock is a Hold with a £200.00 price target. To see the full list of analyst forecasts on Forterra stock, see the GB:FORT Stock Forecast page.