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Investing.com -- Forterra (NASDAQ:FRTA) on Tuesday raised its full-year guidance after reporting better-than-expected first-half results, driven by strong volume growth and market share gains.
The company reported first-half EBITDA of £29.9 million, approximately 4% above both analyst estimates and consensus forecasts. Sales increased by about 20% year-over-year, primarily due to volume growth.
Forterra indicated it has recaptured market share following losses last year, with UK brick industry dispatches up 14% year-over-year for January through May. The company noted that June trends remained similar to those seen in April and May.
While pricing was positive, this benefit was offset by changes in product mix as growth came predominantly from volume housebuilders.
For the full year 2025, Forterra now expects adjusted EBITDA to be ahead of previous expectations, with the second half projected to be modestly higher than the first half.
Management appears comfortable with full-year EBITDA of approximately £61-62 million, representing a 4-6% increase from the previous consensus estimate of £58.5 million.
The interim dividend reflects a payout ratio of about 50%, higher than the approximately 40% paid in the previous two years when the company temporarily reduced its dividend in response to challenging market conditions.
Forterra shares are currently trading at 183.80p, with Jefferies analysts maintaining a buy rating and a price target of 237.00p, suggesting a potential upside of 29%.
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