Forterra (FORT) Trading Update summary

Trading performance

• Revenue for the four months to 30 April 2025 rose 22% year-on-year to £124.1m, driven by strong results in Bricks and Blocks and Bespoke Products segments.

• Demand improved, especially in housebuilding, with domestic brick despatches up 17% year-on-year to March.

• Selling price increases were implemented to offset cost inflation, which remains at expected levels.

• Production capacity is being actively managed, with increased output of concrete floor beams and preparations to run both Desford kilns from Q4 2025.

• Net debt before leases reduced to £88.4m at 30 April 2025, down from £118.5m a year earlier, equating to 1.7x EBITDA.

Strategic initiatives and investments

• Wilnecote brick factory reinstatement is progressing, with kiln lighting imminent after a £30m investment.

• The Accrington factory's brick slip production facility commissioning is on track, with a market launch planned later in 2025.

• Strategic investments in manufacturing capacity position the group to benefit from market recovery.

Outlook and market environment

• Positive start to the year expected to continue, though prior year comparatives will become more challenging.

• Board's full-year 2025 expectations remain unchanged amid global macroeconomic uncertainty.

• Key markets benefit from government commitment to increased housebuilding, despite delivery challenges.