Half Year 2025 Ibstock PLC Earnings Call Transcript
Key Points
- Ibstock PLC (FRA:2I5) achieved significant volume growth in the first half of 2025, primarily driven by new build residential demand.
- The company expects H2 EBITDA to be ahead of the comparative period and full-year EBITDA to be in line with the range of GBP77 million to GBP82 million.
- Revenues increased by 9% to GBP193 million, with strong volume growth particularly in the Clay division.
- The Ibstock Futures business showed progress with broad-based growth and is expected to move towards breakeven in the second half.
- The company is making strategic investments in modern methods of construction, such as the Nostell investment, which is progressing well and expected to deliver positive returns.
- Adjusted EBITDA was 6% below the prior year due to higher-than-expected incremental costs related to reactivating network capacity and a competitive market backdrop.
- EBITDA margin reduced by 280 basis points, impacted by incremental costs and competitive market conditions.
- Leverage increased marginally and remains above the level at the beginning of the year, reflecting seasonal working capital increases.
- Return on capital employed at 7% remains well below the targeted level, impacted by markets operating below normalized levels.
- The RMI market continues to be subdued, with ongoing volume weakness reported by merchants, affecting overall market recovery.
Good morning, and welcome to 2025 half-year-results presentation for Ibstock plc. With me, as usual, is our CFO, Chris McLeish.
So turning to the agenda. After my initial overview, Chris will walk us through the financials and cover divisional performance. I'll then give an update on the market and talk about the strategic progress we've made over the last six months. Having covered the summary and outlook, Chris and I would be happy to answer your questions.
So turning first to the overview. I'm pleased to say that we achieved a significant volume growth in the first half of 2025, with that growth coming mainly from new build residential demand. We took steps during the first half to activate network capacity to meet recovering demand, although as previously communicated, we recognized higher-than-expected incremental costs in doing so.
We also saw a more competitive market backdrop in some parts of the market, which meant that we achieved only modest price progression and a negative mix impact, primarily
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