Ibstock shares rise 6% after earnings report release

Published 05/03/2025, 09:52
© Reuters.

Investing.com -- Shares of Ibstock climbed 6.5% following the release of their financial results which reported an EBITDA in line with the company’s January guidance and the latest consensus.

The company’s management expressed confidence in having increased market share in the second half of 2024 without sacrificing pricing power. Additionally, Ibstok’s end-of-year net debt was disclosed, aligning with prior disclosures.

The company’s EBITDA for 2024 matched the guidance set earlier in January and the latest consensus estimate of approximately £79.6 million.

Despite a delay in approximately £5 million of growth capital expenditures from 2024 to 2025, the management is optimistic about returning to their target net debt to EBITDA range of 0.5-1.5x within the current year, as they anticipate an increase in EBITDA.

The outlook for Ibstok also provided some additional details. The company reported an increase in volume in the early weeks of 2025 compared to the same period last year, with double-digit growth noted, albeit against easy comparables.

Furthermore, around two-thirds of the company’s energy requirements for 2025 have already been secured, and they expect EBITDA to be weighted towards the second half of the year, coinciding with a projected improvement in the market.

Analysts from Jefferies commented on the company’s outlook, stating, "We do not expect changes to consensus on the back of today with management retaining their prior view on 2025 (volume growth of c.+5%, low-to-mid-single-digit price inflation, EBITDA of c.£90m which consensus expectations already reflect)."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.