Forterra (FORT) H2 2025 earnings summary

Executive summary

• Revenue grew by 12.1% year-over-year to GBP 386 million, outperforming the wider market despite challenging conditions.

• Adjusted EBITDA increased by 18.5% to GBP 61.6 million, with margin up 90 basis points to 16.0%.

• Net debt reduced to GBP 55.7 million, with leverage at approximately 1.0x EBITDA.

• Full year dividend more than doubled to 6.2p, and a GBP 20 million share buyback was announced.

• Strategic milestones included recommissioning the Wilnecote brick factory and launching extruded brick slips from Accrington.

Financial highlights

• Revenue increased to GBP 386 million from GBP 344.3 million year-over-year.

• Adjusted EBITDA grew to GBP 61.6 million from GBP 52.0 million, up 18.5%.

• Profit before tax rose 62.9% to GBP 36 million.

• EPS rose 66% to 12.6 pence per share year-over-year.

• Full year dividend of GBP 0.062 per share, payout ratio of ~50%.

Outlook and guidance

• 2026 adjusted EBITDA expected to be slightly ahead of 2025, with demand broadly in line and activity weighted to the second half.

• Announced price increases for 2026 expected to recover cost inflation and support margins.

• CapEx for 2026 expected around GBP 15 million, including strategic investments.

• Net debt before leases targeted at GBP 55 million by year-end 2026.

• Energy costs are 80% fixed for the year, with gas exposure 100% secured for March.