Ibstock PLC (GB:IBST)
LSE:IBST
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Ibstock
(LSE:IBST)
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Rating:48Neutral
Price Target:
108.00 p
▼(-4.93% Downside)
Action:ReiteratedDate:03/08/26
The score is held down primarily by weakening financial performance (multi-year revenue decline, sharply lower profitability, and negative 2025 free cash flow) and a technically bearish setup (price below all key moving averages with negative MACD). Valuation is only moderately supportive due to the ~3.05% dividend yield, while the earnings call adds a modest offset via guidance for a second-half 2026 recovery and lower capex, tempered by ongoing margin/ROCE and working-capital pressures.
Positive Factors
Market share gains
Outperforming the UK brick market with modest revenue growth signals durable competitive positioning. Strong relationships with housebuilders and merchant channels support steady volumes and pricing power through cycles, making market-share gains a structural advantage for mid-term recovery.
Negative Factors
Multi-year revenue and margin erosion
Sustained revenue declines and sharp margin compression materially weaken return generation and ROE. This structural deterioration reduces retained earnings, constrains reinvestment capacity and raises the bar for management to restore normalized profitability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Market share gains
Outperforming the UK brick market with modest revenue growth signals durable competitive positioning. Strong relationships with housebuilders and merchant channels support steady volumes and pricing power through cycles, making market-share gains a structural advantage for mid-term recovery.
Read all positive factors
Ibstock (IBST) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£417.40M
Dividend Yield2.39%
Average Volume (3M)1.29M
Price to Earnings (P/E)179.1
Beta (1Y)1.46
Revenue Growth1.61%
EPS Growth-79.69%
CountryUK
Employees1,949
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding394,893,900
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
£124.00Price Target Upside9.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.05
Revenue Forecast (FY)£374.34M
Ibstock Business Overview & Revenue Model
Company Description
Ibstock plc manufactures and sells clay and concrete building products and solutions primarily in the United Kingdom. Its principal products include clay bricks, brick components, concrete roof tiles, concrete stone masonry substitutes, concrete f...
How the Company Makes Money
Ibstock generates revenue through the sale of its core building products, which include a diverse range of bricks and concrete solutions. The company's primary revenue streams come from direct sales to builders, construction firms, and distributor...
Ibstock Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: near-term trading was challenging with EBITDA down ~10%, margin compression (‑260bps), and a low ROCE of 5.8%, driven by weak infrastructure (rail) and a late-year demand slowdown. Offsetting this are positive strategic and balance-sheet developments — market share gains, completion and commissioning of major investments (Atlas, Nostell), disposals releasing ~GBP 30m, reduced future CapEx, progressed calcined clay commercialisation, and improved H2 margins and price action. Management is taking decisive cost and capacity actions, positioning the group to benefit from a market recovery. Overall, positives and strategic optionality mitigate the financial softness but do not yet fully overcome it.Positive Updates
Revenue Growth and Market Share
Group revenue increased 2% year-on-year to GBP 372.1m; total UK brick market grew 6% to 1.83bn bricks and Ibstock's market share was ahead of the market and prior year.
Negative Updates
EBITDA and Margin Compression
Adjusted EBITDA was GBP 71m, down around 10% versus 2024; EBITDA margin reduced by 260 basis points to 19.1% (though improved to ~20% in H2).
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Market Share
Group revenue increased 2% year-on-year to GBP 372.1m; total UK brick market grew 6% to 1.83bn bricks and Ibstock's market share was ahead of the market and prior year.
Read all positive updates
Company Guidance
The guidance from the call was that 2026 should see a second-half recovery with modest year‑on‑year volume growth in H2 (H1 volumes expected broadly in line with H2 2025, leaving H1 weighted EBITDA at c.40–45%), after FY2025 results of GBP 372.1m revenue and GBP 71m EBITDA (EBITDA margin 19.1%, down 260bps and ~10% versus 2024); net debt at GBP 120m (leverage 2.0x; covenant-defined leverage 1.7x at 31 Dec 2025) with GBP 225m committed facilities and >GBP 100m available liquidity; inventory/WC outflow c. GBP 14m and c.40–50m bricks in surplus stock; capital expenditure expected to fall from FY2025 levels (GBP 21m growth and ~GBP 24m sustaining in 2025) to c. GBP 25–30m in 2026; energy ~80% hedged; Feb 2026 price increases intended to offset cost inflation (management referencing ~3% price/margin contribution); exceptional disposals already released ~GBP 30m (with a further GBP 20–30m of land disposals targeted over 3–5 years and land income c. GBP 2–3m pa); ROCE was 5.8% now with a medium‑term target of ≥20%; long‑term revenue and margin targets are GBP 600m and c.28% margin when markets recover.Ibstock Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 372.10M | 366.21M | 405.84M | 512.89M | 408.66M |
| Gross Profit | 107.77M | 114.33M | 143.75M | 196.61M | 140.83M |
| EBITDA | 67.05M | 69.52M | 77.56M | 148.27M | 109.24M |
| Net Income | 3.07M | 15.09M | 21.06M | 86.91M | 31.81M |
Balance Sheet | |||||
| Total Assets | 744.75M | 752.11M | 754.23M | 762.78M | 756.14M |
| Cash, Cash Equivalents and Short-Term Investments | 20.97M | 9.29M | 23.87M | 54.28M | 61.20M |
| Total Debt | 170.52M | 165.93M | 168.32M | 133.31M | 127.25M |
| Total Liabilities | 362.29M | 356.84M | 354.36M | 346.57M | 332.91M |
| Stockholders Equity | 382.46M | 395.26M | 399.87M | 416.16M | 423.23M |
Cash Flow | |||||
| Free Cash Flow | -5.06M | 8.42M | -9.82M | 58.10M | 55.14M |
| Operating Cash Flow | 39.71M | 53.66M | 58.25M | 122.03M | 86.50M |
| Investing Cash Flow | -12.35M | -44.55M | -68.50M | -57.00M | -28.02M |
| Financing Cash Flow | -15.82M | -23.68M | -20.14M | -71.97M | -16.80M |
Ibstock Technical Analysis
Neutral
113.60
Price Trends
115.59
Negative
124.94
Negative
131.62
Negative
Market Momentum
-0.90
Negative
57.54
Neutral
73.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IBST, the sentiment is Neutral. The current price of 113.6 is above the 20-day moving average (MA) of 105.02, below the 50-day MA of 115.59, and below the 200-day MA of 131.62, indicating a neutral trend. The MACD of -0.90 indicates Negative momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 73.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | £1.07B | 13.59 | 7.14% | 4.47% | 8.72% | -13.66% | |
62 Neutral | £332.31M | 23.01 | 7.33% | 2.13% | 12.11% | -3.00% | |
62 Neutral | £67.54M | 14.26 | 3.91% | 5.35% | -1.73% | -39.61% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £1.40B | 17.54 | 10.11% | ― | 7.62% | 248.33% | |
53 Neutral | £342.54M | 11.50 | 2.91% | 4.18% | 2.08% | -53.51% | |
48 Neutral | £417.40M | 179.13 | 0.79% | 2.39% | 1.61% | -79.69% |
* Basic Materials Sector Average
GB:IBST
Ibstock
105.50
-66.52
-38.67%
GB:FORT
Forterra
158.80
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GB:MSLH
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-48.97%
GB:MBH
Michelmersh Brick Holdings
73.50
-25.91
-26.06%
GB:SRC
SigmaRoc
126.00
37.30
42.05%
GB:BREE
Breedon
312.60
-106.58
-25.43%
Ibstock Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ibstock Strengthens Board With Appointment of New Audit Committee Chair
Positive
Mar 5, 2026
Ibstock has appointed Martin Payne as an independent non-executive director from 30 March 2026 and as chair of its audit committee following the AGM on 21 May 2026, further strengthening its board governance. Payne, a former CEO and CFO in major b...
Business Operations and StrategyDividendsFinancial Disclosures
Ibstock cushions profit fall with strategic upgrades amid tough UK construction market
Negative
Mar 5, 2026
Ibstock reported a resilient but softer performance for 2025, with revenue edging up 2% to £372m but adjusted EBITDA falling 10% to £71m as cost inflation, adverse product mix and the cost of reinstating capacity weighed on margins. Stat...
Regulatory Filings and Compliance
Ibstock Updates Market on Share Capital and Voting Rights
Neutral
Mar 2, 2026
Ibstock Plc has reported that as of 28 February 2026 its issued share capital comprised 409,631,594 ordinary shares of 1 penny each, of which 14,918,464 are held in treasury. This leaves 394,713,130 ordinary shares carrying voting rights, a key fi...
Regulatory Filings and Compliance
Ibstock Updates Market on Total Voting Rights and Share Capital
Neutral
Feb 2, 2026
Ibstock plc has reported that, as of 31 January 2026, its issued share capital comprised 409,631,594 ordinary shares of 1 penny each, of which 14,928,290 are held in treasury, leaving 394,703,304 ordinary shares in circulation with voting rights. ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Ibstock Delivers Resilient 2025 Results and Primes Balance Sheet for Market Recovery
Positive
Jan 20, 2026
Ibstock reported a resilient full-year 2025 performance despite worsening market conditions in the second half, with revenue edging up 2% to about £372 million and EBITDA and trading cash flow in line with guidance, while net debt remained br...
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.