Forterra (FORT) Trading Update summary

Trading performance and outlook

• Trading conditions remained challenging, with brick despatches steady and improved demand for concrete products.

• Year-to-date revenues were 5% below 2023, but pricing discipline and cost control kept adjusted EBITDA in line with expectations.

• Full-year adjusted EBITDA guidance is maintained at around £50m.

• Strategic investments, including the £12m Accrington brick slip facility and Wilnecote factory refurbishment, are progressing, enhancing capacity and efficiency.

• The group is positioned to benefit from government housing policies and improved affordability as interest rates fall.

Operational updates and investments

• Commissioning has begun at the Accrington brick slip facility, the UK's first large-scale domestic site, with 50m unit annual capacity.

• Wilnecote brick factory refurbishment is on track, with production resuming in 2025, targeting the premium market.

• Inventory levels are sufficient to meet demand, and output can be increased efficiently as market conditions improve.

• Output of some concrete products has already been increased in response to demand.

• The £140m strategic investment programme has increased brick manufacturing capacity by 15%.

Cost management and pricing

• Modest cost inflation is expected in 2025, partly due to higher Employers' National Insurance contributions.

• 80% of 2025 energy requirements are secured, with good coverage for 2026 and 2027.

• Selling price increases for 2025 have been announced, with discussions ongoing with customers.

• Ability to deliver price increases will depend on market conditions and competitor pricing.