Forterra (FORT) H1 2025 earnings summary

Executive summary

• Revenue rose 20.4% year-over-year to £195.1m, driven by strong volume growth and modest price increases, especially in housebuilding.

• Adjusted EBITDA increased 23% to £29.9m, with margin up 30 bps; adjusted PBT rose 82.4% to £16.6m year-over-year.

• Net debt before leases reduced to £69.4m (1.4x adjusted EBITDA), reflecting strong operating cash flow.

• Interim dividend increased 90% to 1.9p per share, reflecting improved trading and reduced net debt.

• Strategic exits from loss-making Bison Bespoke Precast and Formpave announced, expected to improve margins and free up capital.

Financial highlights

• Revenue: £195.1m (up 20.4% year-over-year); adjusted EBITDA: £29.9m (up 23.0%); adjusted PBT: £16.6m (up 82.4%).

• Adjusted EBITDA margin improved to 15.3% (up 30 bps year-over-year).

• Operating cash flow after adjusting items was £31.0m, up from £4.9m in H1 2024.

• Net debt before leases fell by £15.5m to £69.4m, countering typical H1 seasonal trends.

• Interim dividend: 1.9p per share (up 90%).

Outlook and guidance

• H2 adjusted EBITDA expected to be modestly ahead of H1, with full-year adjusted EBITDA and PBT now forecast above previous expectations.

• Continued cautious stance due to UK economic fragility and potential impact on new housing market.

• Board confident recent investments position the group well for market recovery and further debt reduction.