Ibstock Plc · LSE:IBST
Ibstock — H1 2025 Earnings Presentation
41 slides from Ibstock's earnings presentation, Aug 6, 2025
Slide 1: 2025 Half Year Results
2025 HALF YEAR RESULTS 6 AUGUST 2025 Project: The Setl Product: Arden Weathered Rad and Cissbury Red Multi bricks
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation has not been independently verified and this presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “growing”, “scope
Slide 3: Agenda
AGENDA OVERVIEW Joe Hudson FINANCIAL REVIEW Chris McLeish MARKET BACKDROP Joe Hudson STRATEGIC PROGRESS Joe Hudson SUMMARY & OUTLOOK Joe Hudson Q&A 3
Slide 4: Overview
Project: CG Glasgow Road Clydebank Product: Arden Weathered Grey and Ebony Black bricks OVERVIEW Significant volume increase in H1 25, underpinned by strong growth in new build residential markets Performance impacted by costs to activate network capacity; modest price progression in the period With
Slide 5: Financial Review
FINANCIAL REVIEW Project: David Wilson Homes Product: Gemini Mixed Russet roof tiles
Slide 6: Financial Summary
FINANCIAL SUMMARY Adjusted Revenue Adjusted EBITDA* EBITDA margin £193.4m £35.5m 18.4% HY 2024: £178.2m HY 2024: £37.7m HY 2024: 21.2% Return on Dividend Adjusted EPS* EBITDA: Net debt Capital Employed per share 3.0p 2.2x 7.0% 1.5p HY 2024: 3.5p HY 2024: 2.0x HY 2024: 8.0% HY 2024: 1.5p 6 *Excludes
Slide 7: Revenue Bridge
REVENUE BRIDGE Strong revenue growth driven by robust volume performance in Clay Group revenues increased by 9% driven by significant volume growth in Clay HY 2024 119.4 58.8 178.2 Clay revenues 12% higher reflecting stronger volumes in H1; Clay 14.1 Stronger growth in wire cut products into new +£1
Slide 8: Clay
Project: High Grange Product: Beamish Blend, Birtley Olde English Buff, Birtley Olde English Grey and Northumbrian Cottage bricks CLAY Investing in core capacity to meet growing market demand 6 months ended 30th June (£m) 2025 2024 Total Revenue 133.5 119.4 Adjusted EBITDA 32.8 34.2 Margin 24.6% 28.
Slide 9: Concrete
Project: Flood defense Product: Stepoc, Retaining Wall System CONCRETE Well positioned to benefit from market recovery over the medium term 6 months ended 30th June (£m) 2025 2024 Total Revenue 59.9 58.8 Adjusted EBITDA 6.0 7.5 Margin 9.9% 12.7% Revenue increased by £1.1m, up 2% year-on-year Solid v
Slide 10: Active Clay Capacity Increased
ACTIVE CLAY CAPACITY INCREASED Following recent action, active network can now support significant further market growth FY 2022 H1 2024 35% Net 5% capacity increase since 2022 H1 2025 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Production volumes Active capacity available Inactive capacity Acti
Slide 11: Cash Flow Performance
CASH FLOW PERFORMANCE Improvement in cash conversion driven by disciplined management of working capital 6 months ended 30th June (£m) 2025 2024 Adjusted EBITDA 35.5 37.7 Resilient cash flow performance driven by tight control of Δ in net working capital (12.4) (19.4) capital expenditure, cost and w
Slide 12: Resilient Balance Sheet
RESILIENT BALANCE SHEET Our balance sheet remains solid, with net debt expected to reduce during the second half of the year Closing net debt of £144.5m as at 30 June 2025 160.0 Reported leverage of 2.2x at 30 June 2025 (31 Dec 2024: 1.8x) 9.9 144.5 reflecting planned seasonal investment in working
Slide 13: Technical Guidance FY25
Ibstock stand at a Merchant Exhibition, 2025 TECHNICAL GUIDANCE FY25 Income statement Anticipate YoY growth in sales volumes in H2 25, although we remain mindful of broader macroeconomic risks Energy requirements well covered for H2 2025 >80%; >50% covered for 2026 Underlying depreciation expected t
Slide 14: Market Backdrop
Project: 247 Wimbledon Product: Handmade Light Red Multi 50mm MARKET BACKDROP
Slide 15: Core Markets Update
Project: Redrow Homes Product: SL8 Roof Tiles Red CORE MARKETS UPDATE Early signs of market recovery evident, although backdrop remains cautious Focus of Funding allocated Affordability RMI continues government on to social housing remains a to be subdued planning & delivery and new towns challenge
Slide 16: UK Brick Market Overview
UK BRICK MARKET OVERVIEW Strong growth during H1 25, with expectation of YoY progress in H2 2025 Total UK brick deliveries 2017 to 2022 5-month UK brick deliveries 2022 – 2025 Inventories 5-year average UK brick market size of 2.45bn May 2025 YTD UK brick deliveries including imports 13% above Manuf
Slide 17: Growing Market Segments
GROWING MARKET SEGMENTS Growth in diversified construction markets over the medium term 10-YEAR INFRASTRUCTURE MID TO HIGH RISE SOCIAL / RENT HOUSING STRATEGY Includes 500 new schools, 35 new hospitals, c.3,400 buildings in England over 11m with £39bn investment to include building & 3 new prisons u
Slide 18: Strategic Progress
STRATEGIC PROGRESS Ibstock Apprentices at MAKE UK in Birmingham
Slide 19: Our Strategy
OUR STRATEGY Driving superior long term stakeholder value SUSTAINABLE INNOVATION GROWTH HIGH PERFORMANCE DEPLOYING AND EMBEDDING IBSTOCK’S DIFFERENTIATORS Safe, reliable production Obsessive customer experience Sector innovation Sector leading sustainability People and culture v and social impact v
Slide 20: Sector Innovation
New precast Concrete Floor Beams at our Sittingbourne factory using recycled content SECTOR INNOVATION Expanding choice, accelerating innovation and advancing sustainability Building momentum in H1 25 with bringing more new products to the market at pace Introduced six additional new clay products -
Slide 21: Sustainable Growth - Atlas
SUSTAINABLE GROWTH - ATLAS Scaling production and unlocking further carbon reduction potential Production ramp up underway Accelerating production of our lowest carbon bricks to date Five of the 14 new products now successfully progressed through commissioning - all enabled by the extensive capacity
Slide 22: Diversified Growth - Nostell
DIVERSIFIED GROWTH - NOSTELL Two strategic investments progressing well at the new Nostell facility Phase one The UK’s first automated brick slips cutting line continues to ramp up, delivering a positive profit contribution in the first half of 2025 Strong market response reinforces confidence in fa
Slide 23: Calcined Clay
Quarry Example CALCINED CLAY Leading innovation opportunity in low-carbon cement Calcined Clay can help cut concrete’s CO2 emissions by ~40% Cement and concrete contribute 7-8% of global CO2 emissions Calcined clay expected to lower cash costs vs Ordinary Portland Cement (OPC) Strong demand expected
Slide 24: Summary & Outlook
SUMMARY & OUTLOOK The Ibstock Bee Brick
Slide 25: Potential for Significant Earnings Growth Over the Upcoming Years
POTENTIAL FOR SIGNIFICANT EARNINGS GROWTH OVER THE UPCOMING YEARS Core business recovery alongside diversified growth investments support delivery of our mid-term targets With asset platforms now in place, and with market volumes progressing, the Core business recovery and committed growth investmen
Slide 26: Capital Allocation
CAPITAL ALLOCATION SIGNIFICANT ORGANIC INVESTMENT FOCUS TO DATE GREATER OPTIONALITY LOOKING FORWARD Since 2018: c.£300m of organic capital invested, Expect free cash flow generation to create significant surplus capital driving a lower cost, more efficient and over the next 5 years (after sustaining
Slide 27: Summary & Outlook
Project: The Pump House, London Product: White Engobe bricks SUMMARY & OUTLOOK Anticipate further volume growth in H2, although mindful of the macro uncertainty Expect to deliver improved profitability, reflecting focus on costs and operational efficiency Capacity investment and reactivation leaves
Slide 28: Q&A
Q&A Project: ExCel London Product: New Chailey Stock bricks
Slide 29: Appendices
Ibstock stand at Rail Live 2025 APPENDICES
Slide 30: Ibstock at a Glance
IBSTOCK AT A GLANCE Ibstock Plc is a leading UK manufacturer of building products and solutions, backed up by design and technical services Key facts* Eight core product categories and solutions 200 Over 200 years of experience 34 Operating manufacturing facilities across the UK c.2,000 95% Raw mate
Slide 31: Progress in 2024 Against Our ESG 2030 Ambitions
PROGRESS IN 2024 AGAINST OUR ESG 2030 AMBITIONS Carbon reduction (Scope 1 and 2) Product innovation Health and safety 49% 22% 13% 2023: 37% 2023: 11% 2023: 5% % absolute carbon reduction tonnes CO2 (relative to 2019 baseline) % sales turnover from new and more sustainable products and solutions Year
Slide 32: Major Organic Growth Projects
MAJOR ORGANIC GROWTH PROJECTS Group’s investment programme underpinning medium term ambition now well advanced Incremental Cumulative Spend to EBITDA £m spend to Total cost complete at full 30 Jun 2025 utilisation Core Clay Investment to increase capacity and provide UK’s first investments at carbon
Slide 33: Medium Term Targets
MEDIUM TERM TARGETS Revenue growth target Target to grow revenues to >£600m in the medium term >£600m £513m with an ambition to grow beyond this £409m £406m £366m £316m Medium term profitability targets: 2020 2021 2022 2023 2024 Mid-term EBITDA Margins in core Clay business of >35% Overall Group mar
Slide 34: Brick Market Dynamics
BRICK MARKET DYNAMICS Balancing supply and demand Brick Deliveries (billions of bricks) Brick Production and Stock (billions of bricks) Domestic Deliveries Imports Production Stock 2.1 2.0 2.0 1.9 1.9 1.9 0.5 1.8 1.8 0.4 0.5 0.6 0.3 1.6 1.6 1.6 0.3 0.2 1.5 0.3 1.4 1.4 0.1 0.3 1.3 1.3 0.1 0.1 0.1 0.1
Slide 35: Income Statement
INCOME STATEMENT 6 months ended 30th June (£m) 2025 2024 Revenue £193.4m £178.2m Adjusted EBITDA £35.5m £37.7m Normal depreciation (£14.8m) (£14.6m) Adjusted profit before interest and tax £20.7m £23.1m Cash interest (£4.6m) (£4.3m) Adjusted profit before tax £16.1m £18.8m Taxation - at effective ra
Slide 36: Adjusted Income Statement Reconciliation
ADJUSTED INCOME STATEMENT RECONCILIATION Depreciation and Exceptional Non-cash Deferred tax Capitalised 6 months ended 30th June 2025 (£m) Adjusted Statutory amortisation items Interest rate change interest Revenue £193.4m - - - - - £193.4m Costs (£157.9m) (£20.2m) (£2.8m) - - - (£180.9m) EBITDA £35
Slide 37: Exceptional Income Statement and Cash
EXCEPTIONAL INCOME STATEMENT AND CASH 6 months ended 30th June 2025 (£m) Enterprise restructuring GRC Total 2025 brought forward (£1.2m) (£0.7m) (£1.9m) Current year exceptional charge to income statement (£0.7m) (£2.1m) (£2.8m) Cash paid £1.3m £1.9m £3.2m 30 June 2025 carried forward (£0.6m) (£0.9m
Slide 38: Balance Sheet
BALANCE SHEET 6 months ended 30th June (£m) 2025 2024 Property, plant and equipment £470.6m £453.3m Right of Use assets £26.1m £36.8m Intangible fixed assets & Goodwill £70.4m £76.3m Non-current assets £567.1m £566.4m Inventories £128.8m £116.8m Trade and other receivables £55.7m £58.6m Current asse
Slide 39: Cash Flow
CASH FLOW 6 months ended 30th June (£m) 2025 2024 Cash generated from operations £17.2m £10.8m Interest paid (£3.7m) (£3.0m) Other interest paid - lease liabilities (£1.0m) (£1.3m) Tax paid (£2.3m) (£0.5m) Net cash flow from operating activities £10.2m £6.0m Cash flows from investing activities Purc
Slide 40: Cash Flows Since IPO
CASH FLOWS SINCE IPO 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Adjusted operating cash flow* £96m £97m £84m £72m £50m £76m £108m £50m £56m £690m Capital invested (£59m) (£38m) (£31m) (£39m) (£24m) (£25m) (£58m) (£66m) (£45m) (£385m) Adjusted free cash flow £38m £59m £53m £33m £26m £51m £50m
Slide 41: Adjusted EBIT LTM and ROCE
ROCE Clay Concrete Group £40.5m -10% £2.9m -36% £36.4m -10% Adjusted EBIT LTM 2025 £40.5m 2025 £2.9m 2025 £36.4m 2024 £44.9m 2024 £4.6m 2024 £40.7m 2023 £91.1m 2023 £12.3m 2023 £92.1m 9.1% -120pts 3.8% -190pts 7.0% -100pts 2025 9.1% ROCE (1) 2025 3.8% 2025 7.0% 2024 10.3% 2024 5.7% 2024 8.0% 2023 23