Ibstock warns on profit as UK brick sales fall 22% below forecasts
Ibstock cut planned production by a fifth after third-quarter sales fell 22% below expectations, with UK brick market volumes down 17% year-on-year in July and August.
The story in focus
Ibstock, the UK's biggest brickmaker, issued a profits warning after third-quarter sales came in 22% below expectations. Industry data showed UK brick market volumes down 17% year-on-year in July and August, prompting a one-fifth cut to planned production.
- Third-quarter sales were 22% below Ibstock's expectations
- UK brick market volumes fell 17% year-on-year in July and August, per industry data cited by the company
- Ibstock cut planned production volumes by one-fifth versus plans set out in August
- Full-year 2026 earnings are guided to the mid-£40m range against close to £60m expected by the City
- The shares fell 11% to near their lowest level since Ibstock relisted in 2015
What Ibstock reported
Ibstock, described by The Guardian's Nils Pratley as the country's biggest brickmaker, said sales in the third quarter were 22% below expectations. The company cited industry data showing UK brick market volumes down 17% year-on-year in July and August.
The shortfall forced a one-fifth reduction in planned production volumes compared with plans set out as recently as August. Full-year 2026 top-line earnings are guided to the mid-£40m range, against close to £60m expected by the City.
Market and sector context
The profit warning sent the share price down 11% to virtually its lowest level since the firm relisted on the stock market in 2015. Pratley writes that the sector's slowdown is entrenched, noting housebuilders have pledged financial discipline, which he describes as corporate language for shelving expansion and focusing on costs. Berkeley Homes, focused on south-east England, said six months ago it would stop buying new land and hiring staff.
Pratley attributes the downturn in part to a turnaround in interest rate expectations linked to the Iran war, with the Bank of England expected to raise rates. Housebuilders also cite regulatory costs that are harder to absorb when new house prices are flat.
Policy response and outlook
The government's Your First Home scheme, announced by housing secretary John Healey, is expected to launch next April following the chancellor's budget statement. Ibstock chief executive Joe Hudson said the delay may weigh on demand in the intervening period.
Peel Hunt described the scheme as modestly helpful but said lower interest rates remain key to a pickup in sector activity. Pratley writes that 2027 growth of 1%, as forecast by the Office for Budget Responsibility, is unlikely to move housebuilding volumes meaningfully.
How far did Ibstock cut production plans after its third-quarter sales shortfall?
Ibstock cut planned production volumes by one-fifth compared with plans set out in August, after third-quarter sales came in 22% below expectations.
Sources & further reading
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