Forterra cuts FY EBITDA guidance, shares down 6%
Forterra plc (LON:FORT) announced that its full‑year adjusted EBITDA is now expected to be approximately £50 million, compared with the consensus estimate of £54.8 million compiled by the company. The revision was accompanied by a 6.1 % decline in the share price.
For the ten months ended 31 October, group revenue was £282.7 million, an 11.9 % decline on a like‑for‑like basis versus the prior year, worsening from the 9.3 % decline recorded in the first half of the year. Brick dispatches in the UK for the nine months ended 30 September fell 11 % year‑on‑year, down from an 8 % fall in the first half.
The company said lower sales volumes and reduced fixed‑cost absorption as it aligned production with demand pressured profitability. Leverage is projected to reach roughly 1.9 times. Forterra expects to deliver about £1 million of cost savings in the second half, equivalent to £2 million on an annualised basis, while maintaining brick market share and keeping underlying selling prices broadly in line with expectations.
Production levels across all product categories are being actively managed to limit inventory build‑up and exposure to unhedged gas costs; about 80 % of fiscal‑2027 gas requirements have already been secured.
The disposal of two surplus land assets is underway, with aggregate proceeds of roughly £12 million anticipated by year‑end, subject to completion. The ongoing £20 million share‑buyback programme is expected to be completed in December 2026; as of 31 October, 12,049,421 shares had been repurchased at a cost of £17.7 million.
Demand in the repair, maintenance and improvement market, particularly home extensions, remained subdued and broadly in line with that for new‑build housing.