Street Calls of the Week
Investing.com -- Shares of Ibstock Plc fell more than 8% on Friday after the UK brickmaker issued a second profit warning for 2025, citing weaker-than-expected demand in the third quarter.
Jefferies said the warning reflects a broad-based slowdown in the residential new build sector rather than issues specific to the company.
Ibstock now expects full-year 2025 EBITDA of about £71 million, compared with a consensus forecast of £79.6 million, a reduction of roughly 11%. Year-end leverage is expected to rise to about 2x, the brokerage added.
Following strong volume growth of around 15% year-on-year in the first half of 2025, Ibstock said it now expects second-half volumes to be flat year-on-year, down from earlier guidance of mid-single-digit growth.
August brick delivery data showed a year-on-year decline, though September deliveries were modestly ahead.
The company said it believes it has maintained market share in line with the first half of the year.
The group reported some pricing pressure, with headline prices down a few percentage points from the first half of 2025, partly driven by product mix, which remains skewed toward residential new build. Concrete products also experienced weaker demand.
Ibstock expects second-half EBITDA to be similar to the first half, at £35.5 million, bringing full-year EBITDA to about £71 million.
This follows an earlier warning in June linked to lower-than-anticipated pricing and additional costs from a capacity ramp-up.