Ibstock shares tumbled 15% to a record low on Monday after the British bricks and concrete maker cut its annual profit expectations for the second time this year, blaming persistent weakness in the construction market.
The company now expects annual adjusted core profit in the mid-£40 million range, down from the lower end of a £59 million to £68 million range it forecast earlier. The downgrade dashes hopes of a second-half recovery that the company had held out earlier in the year.
Ibstock said weak market conditions continued through September and October, squashing expectations for a revival in demand. Its third-quarter production was cut by about 20% against the plans set at the half-year, a move aimed at saving costs and better matching falling brick sales.
The warning underlines the pressure facing Britain’s construction materials suppliers, which have been hit by a slump in residential and commercial construction. Affordability constraints and rising mortgage rates and costs have weighed on building activity, leaving suppliers with weaker order books.
The government’s recently introduced first-time buyer subsidy had temporarily boosted shares across construction material stocks, on expectations of a revival in demand. But Ibstock said the delayed rollout of the scheme was disappointing and had put additional pressure on near-term demand.
For a company whose fortunes are tied closely to housebuilding, the second downgrade of the year points to a market still waiting for a turn. Until construction activity picks up, Ibstock and its peers face a difficult balance between cutting output to protect margins and keeping capacity ready for any recovery.
Note: the featured image is a file photo of a brick factory, not an Ibstock plant.
Sources: Reuters, “UK’s Ibstock lowers annual profit view for the second time, shares slump”, 2 November 2026, https://www.reuters.com/business/uks-ibstock-lowers-annual-profit-view-second-time-shares-slump-2026-11-02/
