Materials firm’s profit warning betrays weaknesses in UK construction market

Image: Ibstock

The company said revenues in both its clay and concrete divisions had suffered during the period. Although it retained its market share, softer market demand meant that sales volumes in the second half of 2025 were now expected to be in line with the first half.

It also expects second-half core profit to be similar to the £35.5 million (US$47.2 million) it made in the first half of the year. The firm previously had issued guidance that core profits would be £77 million - £82 million in 2025.

The company, which generated revenue of £366 million (US$486.7 million) blamed a more uncertain near-term economic and political backdrop for the weaker-than-expected performance.

Ibstock CEO Joe Hudson said, “With clear, long term structural imperatives for residential construction growth, it is disappointing that additional near-term headwinds are impacting momentum in our markets in the latter part of the year. In spite of this difficult and uncertain market backdrop, the Group has continued to make good operational progress and maintain share.

“Whilst it remains difficult to predict the pace and timing of market recovery, we will continue to focus on strong execution and progressing our long-term strategic growth projects. These initiatives, combined with the increasing contribution from our recent investments, leave us well positioned to benefit as the market returns.”

The update comes as the UK awaits the government’s Autumn Budget 2025 on 26 November, alongside an economic forecast from the Office for Budget Responsibility. Chancellor Rachel Reeves, is expected to be forced to increase taxes, with many businesses and investors waiting to see what is contained within it, adding to a climate of uncertainty.