Forterra Plc · LSE:FORT
Forterra — H1 2025 Earnings Presentation
28 slides from Forterra's earnings presentation, Jul 29, 2025
Slide 1: Interim Results Presentation 2025
INTERIMRESULTS PRESENTATION 2025 FORTERRAPLC 29 JULY 2025
Slide 2: Disclaimer
This document has been prepared by Forterra plc (the “Company”) solely for use at a Statements in the Presentation, including those regarding the future financial condition, results presentation on 29 July 2025 in connection with the Company’s Results Announcement in of operations, business or other
Slide 3: Agenda
01 ⎯ Headlines 02 ⎯ Financial Review 03 ⎯ Our Markets 04 ⎯ Strategic Update 05 ⎯ Outlook Chief Executive Officer Chief Financial Officer Interim Results Presentation 2025 3
Slide 4: Headlines
▪ Revenue of £195.1m increased 20.4% relative to the prior period driven by strong volume growth and modest selling price progression ▪ UK brick industry despatches to the end of May 2025 increased by 14% relative to the prior year ▪ Recovering demand primarily driven by housebuilding with RM&I subd
Slide 5: Financial Review
Interim Results Presentation 2025 5
Slide 6: Group results summary
Six months ended 30 June* £m 2025 2024 Change Revenue 195.1 162.1 20.4% EBITDA 29.9 24.3 23.0% EBITDA margin 15.3% 15.0% 30 bps Operating profit (EBIT) 20.0 14.0 42.9% Profit before tax (PBT) 16.6 9.1 82.4% Earnings per share (pence) 5.8 3.2 81.3% Operating cash flow 30.0 13.3 125.6% Net debt before
Slide 7: Income statement summary
Period ended 30 June* £m 2025 2024 Change Revenue 195.1 162.1 20.4% EBITDA - Bricks and Blocks 27.5 22.7 21.1% - Bespoke Products 2.4 1.6 50.0% Total 29.9 24.3 23.0% EBITDA margin 15.3% 15.0% 30 bps Depreciation and amortisation (9.9) (10.3) (3.9)% Operating profit (EBIT) 20.0 14.0 42.9% Finance exp
Slide 8: Adjusted results reconciliation
277.4 376.1 2023 2022 Period ended 30 June £m 2025 2024 ▪ Adjusted results are provided to fairly show our EBITDA 23.2 28.0 underlying trading performance on a like-for-like basis Exceptional items ▪ Adjustments relate to: Restructuring costs 0.5 0.2 Impairment of assets 3.5 – ▪ Exceptional costs as
Slide 9: Bricks and Blocks segment
▪ Improvement in demand driven by housebuilding with RM&I remaining subdued Six months ended 30 June* ▪ Aircrete also saw strong volume growth although this was constrained by inventory as we increased output £m 2025 2024 Change ▪ Necessary price increases implemented across the Revenue 154.2 130.2
Slide 10: Bespoke Products segment
277.4 376.1 2023 2022 ▪ Improved performance driven by strong demand for both beam & block and hollowcore flooring Six months ended 30 June* £m 2025 2024 Change ▪ Strong housebuilder and groundworker demand for floor beams provides assurance of underlying Revenue 42.2 33.7 25.2% demand our other pro
Slide 11: Working capital
▪ Continued disciplined working capital management ▪ Normal H1 seasonal trend of increasing working capital offset by inventory reduction leaving a broadly static position ▪ At 30 June 2025 finished goods inventories totalled £61.5m, compared to £66.6m at the end of 2024 Interim Results Presentation
Slide 12: Capital expenditure
Capital expenditure* £m 2019 2020 2021 2022 2023 2024 2025** Strategic 12.6 19.5 28.9 33.6 19.3 21.6 9.5 Maintenance 9.9 5.4 5.7 10.5 14.8 4.0 7.2 Total capex 22.5 24.9 34.6 44.1 34.1 25.6 16.7 Note*: Excluding capitalised borrowing costs Note**: Management forecast ▪ With our committed strategic ca
Slide 13: Cash flow
Six months ended 30 • Decline in operating cashflow due predominantly June ▪ Strong cash flow performance in the Period to a £31.1m decline in adjusted EBITDA and a highlighting the Group’s cash generating £m 2025 2024 significant working capital outflow driven by an capabilities increase Adjusted i
Slide 14: Net debt and liquidity
▪ Closing net debt (excluding lease liabilities) of £69.4m (31 December 2024: £84.9m) At 30 At 31 ▪ Leverage as calculated in line with our banking June December covenants, was 1.4 times EBITDA (31 December 2024: 1.9 times) £m 2025 2024 Change ▪ £170m committed revolving credit facility (RCF) of Cas
Slide 15: Our Markets
Interim Results Presentation 2025 15
Slide 16: UK housing and brick market
Housing starts and completions Domestic brick deliveries (MAT)(m) Brick imports (MAT)(m) 250,000 1,950 3,000 23% 25% 200,000 19% 18% 18% 1,750 2,500 20% 150,000 1,550 2,000 15% 1,350 1,500 100,000 10% 1,150 1,000 50,000 500 5% 950 0 0% - 750 Dec 2022 Dec 2023 Dec 2024 May 2025 Mar-22 Mar-23 Mar-24 M
Slide 17: Domestic brick industry capacity
Evolving domestic brick industry capacity Forterra capacity 3.5 Forterra Demand (2022) Increase Decrease Total 3.3 Others Demand (estimate at 300,000 140% homes Government target) 3.1 22% 120% 9% 115% 2.9 7% 100% 33% 100% 2.7 2.60 Bricks (bn) 2.5 80% (47)% 66% 2.3 0.10 2.20 (9)% (0.30) 60% 0.15 2.1
Slide 18: Strategic Update
Interim Results Presentation 2025 18
Slide 19: Our strategy
Strengthen the core Make our current business even better than it is today - Our strategy supports the delivery of our purpose, recognising the key role our products play in shaping the built environment - Strategic imperatives provide a clear roadmap for the organisation, guiding our efforts across
Slide 20: Strategic project progress
▪ Commissioning of the brick slip ▪ Commissioning production line at Accrington progressing of the new well with activity focused on range Wilnecote brick design, with initial range of 14 slips factory expected to be launched in H2 underway with the kiln now lit ▪ Production at Desford to ramp up in
Slide 21: Capital allocation priorities
With an improving balance sheet, capital will be allocated in line with our capital allocation priorities: ▪ Strategic organic capital investment to deliver compelling returns ▪ Pipeline includes potential aircrete factory ▪ Continue to explore the opportunities presented by calcined clay ▪ Attracti
Slide 22: Outlook
Interim Results Presentation 2025 22
Slide 23: Outlook
▪ The Board are encouraged by the Group's H1 performance, with demand for most products ahead of both the prior year and the Board's previous expectations ▪ With H2 adjusted EBITDA expected to be modestly ahead of the H1 figure of £29.9m, we now expect the Group's 2025 adjusted EBITDA to be ahead of
Slide 24: Appendix
Interim Results Presentation 2025 24
Slide 25: Appendix
Interim Results Presentation 2025 25
Slide 26: Growth illustration
▪ Strategic capital investments will leverage the return to a normalised market - Brick slips - Commercial excellence ▪ Growth illustration assumes: - Manufacturing excellence ▪ Return to 2022 levels of profitability (208k completed new homes vs.169k in 2024) ▪ Incremental benefits from projects (as
Slide 27: Balance sheet
At June At December £m 2025 2024 Change Intangible assets 8.5 11.6 (3.1) Property, plant and equipment 263.5 263.8 (0.3) Right-of-use assets 17.2 20.5 (3.3) Derivative asset – 2.8 (2.8) Total non-current assets 289.2 298.7 (9.5) Current assets Inventories 76.1 82.0 (5.9) Trade and other receivables
Slide 28: Forterra plc contact details
Forterra plc 5 Grange Park Court, Roman Way, Northampton NN4 5EA Tel: 01604 707600