|
Clay and concrete product manufacturer Forterra PLC on Wednesday reported weaker annual profit, but said sales volumes outperformed the wider brick market. Shares in the Northampton, England-based firm fell 0.2% on Wednesday in London to 164.20 pence. Over the past 12 months, shares have risen by 3.3%. Forterra’s pretax profit in 2025 fell 6.0% to £23.3 million from £24.8 million the previous year. Keeping a lid on profit, distribution costs shot up 14% to £52.5 million from £46.1 million. Administrative expenses increased 17% to £34.3 million. The firm’s revenue rose 12% to £386.0 million from £344.3 million. This is credited primarily to increased sales volume, where Forterra outperformed the wider market within its Bricks & Blocks segment. With strong sales and operating efficiency within other segments of its product range, it said its market share has recovered back to historical levels. The firm anticipates demand in 2026 to be similar to 2025, but it has been difficult to assess the strength of the underlying market due to weather conditions at the beginning of the year. Chief Executive Officer Neil Ash commented: ‘Market fundamentals remain attractive with a shortage of housing, a strong desire within government to address this, and a constrained supply of essential building products. ‘The board remains confident that our recent investments in new production capacity leave the group well placed to benefit from the market’s structural growth drivers and a sustained recovery when it occurs.’ The firm added: ‘Without the further benefit of a meaningful recovery in demand, and assuming no prolonged impacts from the situation in the Middle East, we currently expect our 2026 adjusted earnings before interest, tax, depreciation, and amortisation to be slightly ahead of 2025.’ Forterra more than doubled its final dividend to 4.3p per share from 2.0pa year prior. It brings the total payout to 6.2p from 3.0p. In addition, it announced plans for a ‘return of surplus capital to shareholders’, with an initial £20 million share buyback in 2026. ‘The intention is that this programme will continue beyond the end of this year although the board will keep this under review,’ Forterra said. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
