Ibstock cuts brick output 20% after third-quarter sales fall 22% short

In a trading update, Ibstock said conditions worsened sharply in the third quarter and stayed weak in October. Industry figures cited in the update put UK brick volumes for July and August down about 17%, AskTraders reported. The company said its market share held and its selling prices were roughly as planned, so the gap came from demand.

Ibstock made about 20% fewer bricks in the third quarter than its half-year plan called for, so unsold stock would not pile up. Lower output spreads fixed factory costs over a smaller volume, which the company expects to cut adjusted EBITDA by about £6 million beyond what the lost sales cost. Cuts to overheads and discretionary spending cover only part of that. In August, after first-half adjusted EBITDA fell to £26 million from £36 million, Ibstock had pointed to the lower end of a £59 million to £68 million range for the year.

Chief executive Joe Hudson called the government's help for first-time buyers, the Your First Home scheme, encouraging, but said its April 2027 start may hold back demand in the months before. The company's statement described the wait as disappointing. The shares opened at 70p on Nov. 2, against 80.65p at the previous close, and broker Peel Hunt lowered its 2026 EBITDA estimate 25%, to £44 million, Proactive Investors reported, according to AskTraders.