Forterra, the UK brick and building materials manufacturer, said on Tuesday that like-for-like revenue fell 9.3% to £168.8m in the first half, as weak housebuilding demand and geopolitical disruption weighed on despatches.
The company said it still expects to deliver a full-year result in line with analyst consensus, which pegs adjusted EBITDA at £55.6m.
Adjusted EBITDA fell to £27m from £29.9m a year earlier, though the margin improved 70 basis points to 16% after the group exited its unprofitable Formpave and Bison Bespoke precast businesses last year.
UK brick industry despatches dropped 8% in the five months to May, according to Department for Business and Trade data, with Forterra outperforming the wider market as demand continued to favour extruded brick over soft mud alternatives.
The group implemented low single-digit brick price increases in the first quarter and added surcharges across products after the Middle East conflict pushed spot gas prices up roughly 60%, though roughly 80% of its 2026 gas requirement was secured at pre-conflict prices.
Forterra announced a restructuring of management and support functions expected to cut costs by £2m annually, alongside production reductions to keep output aligned with demand.
Net debt stood at £74.5m, just under 1.5 times adjusted EBITDA on a banking covenant basis, and the group extended its £170m revolving credit facility to 2030 after the period end.
"We produced a resilient performance and, with demand continuing to favour extruded brick, we have again been able to outperform the wider brick market", chief executive Neil Ash said.
The interim dividend was set at 1.7p per share, down from 1.9p, with an £8.5m share buyback completed against a £20m target.
