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Ibstock
(LSE:IBST)
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Rating:48Neutral
Price Target:
97.00 p
▲(3.14% Upside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by weakening profitability and inconsistent cash generation (including negative free cash flow), with additional pressure from a very high P/E multiple. Offsetting factors include a relatively manageable balance sheet for the sector, modestly improving near-term technical momentum, and guidance pointing to stronger H2 results and gradual deleveraging—though near-term market and execution risks remain significant.
Positive Factors
Clay Market Share Resilience
Ibstock is outperforming the broader clay market despite weak construction demand. Maintaining or gaining share supports longer-term volume recovery potential and indicates customer relationships, distribution reach and product competitiveness remain intact.
Negative Factors
Multi-Year Revenue and Margin Erosion
Repeated revenue contraction and severe margin compression weaken earnings quality and reduce the buffer against further demand or cost pressure. A durable recovery depends on construction volumes, pricing discipline and restoring plant utilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Clay Market Share Resilience
Ibstock is outperforming the broader clay market despite weak construction demand. Maintaining or gaining share supports longer-term volume recovery potential and indicates customer relationships, distribution reach and product competitiveness remain intact.
Read all positive factors
Ibstock (IBST) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£339.71M
Dividend Yield2.33%
Average Volume (3M)1.29M
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth-10.12%
EPS Growth-287.99%
CountryUK
Employees1,944
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)-0.06
Shares Outstanding395,016,050
10 Day Avg. Volume1,487,422
30 Day Avg. Volume1,285,310
Financial Highlights & Ratios
PEG Ratio-2.25
Price to Book (P/B)1.44
Price to Sales (P/S)1.48
P/FCF Ratio-108.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£113.00Price Target Upside20.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.03
Revenue Forecast (FY)£349.07M
Ibstock Business Overview & Revenue Model
Company Description
Ibstock plc operates as a United Kingdom-based manufacturer and supplier of an extensive range of building materials, specializing in both clay and concrete solutions. Their core offerings encompass various clay brick types and components, concret...
How the Company Makes Money
Ibstock makes money by manufacturing and selling building materials, with revenue primarily generated from the sale of bricks and other construction products to customers in the construction supply chain (including housebuilders, contractors, and ...
Ibstock Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 10, 2027
Earnings Call Sentiment Negative
The call presents a mixed picture: meaningful near‑term financial weakness with double‑digit revenue declines, materially lower EBITDA and EPS, elevated leverage and negative H1 cash flow, counterbalanced by clear strategic progress — product innovation (Nostell, Atlas), commercial wins in infrastructure, a strengthened manufacturing base, and material optionality from land and calcined clay. Management expects H2 improvement and longer‑term value drivers are credible, but near‑term execution and market recovery risks remain significant.Positive Updates
Clay business resilience and market share gains
Core clay revenue (excluding futures) was GBP 118.1m, down 8% year-on-year, while Ibstock reported domestic clay volumes down ~7% for the first five months versus estimated market deliveries down ~8%, indicating market share gains in clay.
Negative Updates
Group revenue decline
Group revenue for H1 was GBP 164.2m versus GBP 193.4m prior year, a reported decline of 15%; like‑for‑like revenue down approximately 10%.
Read all updates
Q2-2026 Updates
Positive
Negative
Clay business resilience and market share gains
Core clay revenue (excluding futures) was GBP 118.1m, down 8% year-on-year, while Ibstock reported domestic clay volumes down ~7% for the first five months versus estimated market deliveries down ~8%, indicating market share gains in clay.
Read all positive updates
Company Guidance
Ibstock guided that, despite a challenging market, it expects stronger adjusted EBITDA in H2 than H1 and a full‑year outcome around the lower end of current market expectations, with net debt of £151.3m and leverage of 2.5x at the half‑year expected to reduce towards ~2x by the end of 2026; H1 revenue was £164.2m (‑15% reported, ‑10% like‑for‑like) with adjusted EBITDA £25.7m (H1 2025: £35.5m), adjusted EPS 0.7p (vs 3p), an interim dividend of 0.5p, and adjusted free cash flow outflow of £22.3m (working capital outflow £17.3m); H1 clay revenue was £119.9m (core £118.1m, ‑8% LFL) with clay adjusted EBITDA £23.4m (19.5% margin) and a ~£5–6m deliberate EBITDA headwind from capacity/inventory actions, concrete revenue was £44.3m (‑26% reported, ‑11% LFL) with adjusted EBITDA £3.7m (8.3% margin), CapEx was £15.2m (c.£4m growth, £11m sustaining) and going forward sustaining CapEx is expected c.£20–25m; the June temporary energy/fuel surcharge (plus the Feb price increase) is expected to flow through for H2 with no further price rises planned, clay volumes are expected to improve low single digits H1→H2 (with production flexing if needed — c.45–55m fewer bricks in H2 vs H2 last year), Nostell/Futures net costs were £2.5m (orders in the low millions, enquiries in the tens of millions), and the group expects pricing actions and the normalization of CapEx and working capital to support deleveraging.Ibstock Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 342.88M | 372.10M | 366.21M | 405.84M | 512.89M | 408.66M |
| Gross Profit | 79.29M | 95.98M | 114.33M | 143.75M | 196.61M | 140.83M |
| EBITDA | 53.02M | 64.64M | 69.52M | 77.56M | 148.27M | 109.24M |
| Net Income | -22.87M | 3.07M | 15.09M | 21.06M | 86.91M | 31.81M |
Balance Sheet | ||||||
| Total Assets | 729.94M | 744.75M | 752.11M | 754.23M | 762.78M | 756.14M |
| Cash, Cash Equivalents and Short-Term Investments | 9.89M | 20.97M | 9.29M | 23.87M | 54.28M | 61.20M |
| Total Debt | 193.94M | 170.52M | 165.93M | 168.32M | 133.31M | 127.25M |
| Total Liabilities | 373.32M | 362.29M | 356.84M | 354.36M | 346.57M | 332.91M |
| Stockholders Equity | 356.62M | 382.46M | 395.26M | 399.87M | 416.16M | 423.23M |
Cash Flow | ||||||
| Free Cash Flow | -13.51M | -5.06M | 8.42M | -9.82M | 58.10M | 55.14M |
| Operating Cash Flow | 25.50M | 39.71M | 53.66M | 58.25M | 122.03M | 86.50M |
| Investing Cash Flow | -9.94M | -12.35M | -44.55M | -68.50M | -57.00M | -28.02M |
| Financing Cash Flow | -28.37M | -15.82M | -23.68M | -20.14M | -71.97M | -16.80M |
Ibstock Technical Analysis
Negative
94.05
Price Trends
92.13
Negative
96.14
Negative
110.60
Negative
Market Momentum
-2.20
Positive
39.69
Neutral
21.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IBST, the sentiment is Negative. The current price of 94.05 is above the 20-day moving average (MA) of 90.60, above the 50-day MA of 92.13, and below the 200-day MA of 110.60, indicating a bearish trend. The MACD of -2.20 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 21.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IBST.
Ibstock Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.25B | 15.43 | 6.73% | 4.76% | 7.88% | -9.34% | |
70 Outperform | £292.09M | 16.69 | 7.98% | 4.59% | -4.66% | 16.91% | |
69 Neutral | £1.45B | 17.86 | 10.11% | ― | 7.62% | 248.33% | |
66 Neutral | £68.90M | 19.19 | 3.91% | 5.86% | -1.73% | -39.61% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
48 Neutral | £339.71M | -14.85 | -6.19% | 3.19% | -10.12% | -287.99% | |
46 Neutral | £421.81M | 20.49 | 3.79% | 4.44% | -0.25% | -12.96% |
* Basic Materials Sector Average
GB:IBST
Ibstock
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Ibstock Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ibstock Grants New Long-Term Incentive Award to CFO
Positive
Aug 6, 2026
Ibstock Plc has granted a new long-term incentive award to Chief Financial Officer William Wilkins under its 2023 Long Term Incentive Plan, comprising 285,986 nil-cost options over ordinary shares, valued at an award price aligned with previous gr...
Business Operations and StrategyFinancial Disclosures
Ibstock grows market share but swings to loss amid UK housing slowdown
Negative
Aug 5, 2026
Ibstock reported interim revenue of £164m for the six months to 30 June 2026, down 15% year on year as subdued private housebuilding and repair, maintenance and improvement demand weighed on volumes, pushing the group to a statutory pre‑...
Business Operations and StrategyExecutive/Board Changes
Ibstock Reshapes Board Leadership as Senior Independent Director Plans Exit
Positive
Jul 29, 2026
Ibstock Plc, a major UK supplier of clay bricks, concrete building products and modern construction solutions, supports its manufacturing operations with design and technical services across clay, concrete and its Ibstock Futures innovation arm. T...
Executive/Board Changes
Ibstock Announces Board Change as Non-Executive Director Plans Departure
Neutral
Jul 17, 2026
Ibstock Plc has announced that independent non-executive director Adepeju Adebajo will step down from the board on 23 September 2026 to pursue other opportunities, ending her tenure that began in 2021. Chair Richard Akers publicly thanked Adebajo ...
Business Operations and StrategyRegulatory Filings and Compliance
Ibstock Keeps Employee Share Scheme Balance Unchanged in Latest Block Listing Return
Neutral
Jul 1, 2026
Ibstock plc has reported its latest six‑monthly block listing return covering the period from 1 January to 30 June 2026, for its Long Term Incentive Plan, Share Option Plan, and Sharesave Plan. The company confirms that the balance of 259,22...
Regulatory Filings and Compliance
Ibstock Publishes 2025 Report on Payments to Governments
Neutral
Jun 26, 2026
Ibstock Plc has published its Report on Payments to Governments for the year ended 31 December 2025, in line with UK disclosure and transparency rules. The report, detailing payments made by the company to various government bodies, has been submi...
Executive/Board ChangesStock BuybackDividendsShareholder Meetings
Ibstock shareholders back all AGM resolutions and confirm dividend
Positive
May 21, 2026
Ibstock Plc reported that all resolutions at its 2026 Annual General Meeting in London were passed by shareholders following a poll, with votes cast over roughly 306 million shares out of 395 million voting rights. Investors approved the 2025 Annu...
Business Operations and StrategyFinancial Disclosures
Ibstock Holds Market Share as Early-2026 Sales Dip but Sees Signs of Recovery
Neutral
May 21, 2026
Ibstock reported that difficult UK residential construction conditions and weather disruptions led to an approximate 10% like-for-like revenue decline in the first four months of 2026, though the group maintained brick market share and saw a high ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.