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Investing.com -- Ibstock PLC (LON:IBST) said on Wednesday it has had an "encouraging start" to the second half (H2) of the year, supported by rising demand in key markets, although competitive pressures continued to weigh on pricing.
For H1, group revenue rose 9% to £193 million, driven by strong volume growth in its clay division, where revenue climbed 12% to £134 million.
However, adjusted EBITDA fell by £5.8 million to £36 million, reflecting softer pricing and a less favorable sales mix.
Ibstock shares climbed nearly 3% in London trading.
“Pricing progression in the first half of 2025 was modest, reflecting a competitive market backdrop in some areas of the market, meaning we were not able to fully recover cost inflation in the period,” said CEO Joe Hudson (NYSE:HUD).
He added that the company also saw a “negative impact of sales mix, as a result of relatively stronger growth in new-build residential construction.”
“The new-build residential market showed encouraging signs of recovery in the first half of the year, but activity is still well below normalised levels,” Hudson said.
Despite ongoing challenges, Ibstock reiterated its full-year adjusted EBITDA guidance of £77–82 million and said it sees improved profitability in the second half.
Jefferies analysts said there were no surprises in today’s H1 report.
"The main incremental bit of information seems to be a solid start to 2H25 which should give investors comfort in 2025 forecasts, as well as a little more detail on 2H25 outlook," the analysts noted.
Ibstock said it remains focused on managing margins and operational discipline as it works to rebuild profitability and respond to improving construction demand.