Presentation – Full Results 2025 Presentation

03 Headlines

04 Financial Review

13 Strategy and Markets

25 Outlook Neil Ash

Chief Executive

Officer

Ben Guyatt Chief Financial Officer

FORTERRA PLC 2025 RESULTS PRESENTATION 02

‌Headlines

RESULTS

• Outperformance versus the wider market drove 12.1% revenue growth

• Adjusted EBITDA increased 18.5% to £61.6m, margin improving by 90 bps to 16.0%

• Net debt (pre-leases) reduced to £55.7m, equating to leverage of c.1.0 times

  STRATEGY AND CAPITAL ALLOCATION

• Continued strategic progress with the Wilnecote brick factory recommissioning and first extruded brick slips despatched from Accrington

• Full year 2025 dividend more than doubles to 6.2p (2024: 3.0p)

• Capital allocation priorities confirmed, £20m share buyback programme announced

FORTERRA PLC 2025 RESULTS PRESENTATION 03

FORTERRA PLC 2025 RESULTS PRESENTATION 04

Financial Review

KEY FINANCIALS

REVENUE

£386.0m

2024: £344.3m Change: 12.1%

EBITDA

£61.6m

2024: £52.0m Change: 18.5%

EARNINGS PER SHARE (EPS)

12.6p

2024: 7.6p Change: 65.8%

NET DEBT

£55.7m

2024: £84.9m Change: (34.4)%

FORTERRA PLC 2025 RESULTS PRESENTATION

PROFIT BEFORE TAX (PBT)

£36.0m

2024: £22.1m Change: 62.9%

DIVIDEND

6.2p

2024: 3.0p Change: 106.7%

05

Financial Review

• Revenue growth driven by improved brick despatches with block demand remaining muted

• UK domestic brick despatches increased by 6% vs. 2024

• Growth driven by new build housing with RM&I remaining subdued

• Brick market share returned to historical levels

• Market activity slowed in the second half of the year with brick our most resilient product

• Pricing stable in 2025 with modest increases implemented in early 2026

• Desford running on two kilns benefits operating leverage although weaker soft mud and London Brick demand has led to production reductions in early 2026

• Formpave business exited avoiding significant capex

  Year ended 31 December*
  £m	2025	2024 Change
  Revenue	307.7	276.7 11.2 %
  EBITDA before overhead allocation	81.6	66.2 23.3 %
  EBITDA margin before overhead allocation	26.5 %	23.9 % 260 bps
  Overhead allocation	(24.7)	(17.2) 43.6 %
  EBITDA	56.9	49.0 16.1 %
  EBITDA margin	18.5 %	17.7 % 80 bps

  *Adjusted results

  FORTERRA PLC 2025 RESULTS PRESENTATION 06

  
  
  

  Financial Review

  SEGMENTAL RESULTS: BESPOKE PRODUCTS

• Revenue growth driven by strong increase in demand for both beam and block and hollowcore flooring

• Pricing broadly flat with some moderation

  in cost base in part driven by efficiency savings from value engineering our products

• As in Bricks and Blocks, demand moderated in the second half of the year

• Exit of Bison Bespoke operations had limited impact on the year although will reduce revenue and increase margins in 2026

• Strong operating performance with result ahead of 2022 performance

  Year ended 31 December*
  £m	2025	2024 Change
  Revenue	81.0	71.5 13.3 %
  EBITDA before overhead allocation	10.9	7.3 49.3 %
  EBITDA margin before overhead allocation	13.5 %	10.2% 330 bps
  Overhead allocation	(6.2)	(4.3) 44.2 %
  EBITDA	4.7	3.0 56.7 %
  EBITDA margin	5.8 %	4.2% 160 bps

  *Adjusted results

  FORTERRA PLC 2025 RESULTS PRESENTATION 07

  
  
  

  Financial Review

  
  
  WORKING CAPITAL AND INVENTORY

  £46m

  m

  NET WORKING CAPITAL

  £54

  (100)

  December 2025

  December 2024

  (60)

  (80)

  (30)

  (29)

  (40)

  (39)

  (38)

  0

  (20)

  36

  39

  60

  40

  20

  79

  82

  100

  80

  TRADE PAYABLES ACCRUALS AND OTHER PAYABLES TRADE AND OTHER RECEIVABLES INVENTORIES

• £7.8m reduction in net working capital despite increased activity levels

• Inventories reduced by £2.5m with significant reductions in extruded brick partially offset by increases elsewhere

• Demand volatility continues to make inventory management challenging

  Total working capital (£m)

• Modest production reductions of London Brick, soft mud brick and aircrete enacted in early 2026 ensuring output remains aligned to production

  FORTERRA PLC 2025 RESULTS PRESENTATION 08

  8

  Financial Review

  Note: *Before leases

  Closing net debt*

  Other

  Dividends paid

  Capital expenditure

  Tax paid

  Interest paid

  Adjusted operating cash

  flow

  Opening net debt*

  (84.9)

  (75)

  (7.7)

  (55.7)

  (8.2)

  (50)

  (14.5)

  (1.1)

  (8.0)

  (25)

  68.7

  0

  NET DEBT REDUCED IN 2025

  
  
  

  £m

  CASH FLOW

  • Strong performance again highlights the strength and consistency of the Group's operating cash generation

  • 14.3% increase in adjusted operating cash flow closely correlated to 18.5% increase in adjusted EBITDA, demonstrates the consistency of operating cash conversion

  • Falling interest payment reflects lower borrowings, resultant reduction in margin and falling interest rates

  • Net tax payment reduced by a £2.3m prior year refund

  • Capital spend totalled £14.5m as major capital projects come to a conclusion

    FORTERRA PLC 2025 RESULTS PRESENTATION 09

    Financial Review

    BALANCE SHEET POSITION AND FACILITIES

    At 31 December
    £m	2025	2024	Change
    Cash and cash equivalents	6.1	15.2 (9.1)
    Loans and borrowings	(61.8)	(100.1)	38.3
    Net debt before leases	(55.7)	(84.9)	29.2
    Leverage	c.1.0x	c.1.9x
    Lease liabilities	(19.9)	(20.9)	1.0
    Net debt	(75.6)	(105.8)	30.2

• Net debt before leases reduced to £55.7m

• Leverage of c.1.0 times on a banking covenant basis

• £170m committed RCF facility extending to June 2028

• Leverage target: under 1.5x adjusted EBITDA

  FORTERRA PLC 2025 RESULTS PRESENTATION 10

  
  
  

  Financial Review

  
  
  CAPITAL EXPENDITURE

  CAPEX HISTORY

  60.0

  40.0

  £m

  20.0

  -

  2017 2018 2019 2020 2021 2022 2023 2024 2025

  Strategic Maintenance
  
  

• 2025 saw our lowest capital outlay since 2017 with lower levels of capital spend to continue

• Capital allocation priorities anticipate £15m of routine annual capex to include maintenance and modest enhancement projects in the medium term

• 2026 capex expected to be aligned to this including spend to complete the strategic projects

• Potential for future modest strategic investment with spend spread over multiple years, with net outlay mitigated by realising land value

  FORTERRA PLC 2025 RESULTS PRESENTATION 11

  Financial Review

  2026 TECHNICAL GUIDANCE

  • 2026 YTE gas requirement c.80% fixed with March 2026 100% covered

  • Good coverage beyond this with c.70% secured in 2027 reducing through to 2030

  • Electricity c.85% covered by solar PPA extending to 2040

Depreciation c.£21m

Net interest expense c.£6.5m

Effective tax rate (adjusted profit) c.26%

Average shares (for EPS calculation) c.206m

Full year working capital outflow c.£3m

Capital expenditure (maintenance and strategic) c.£15m

Land sale proceeds (transaction dependant) c.£7m

Cash tax outflow c.£8m

Dividend cash cost c.£14m

Share buyback £20m

Dec 2026 net debt before leases c.£55m

FORTERRA PLC 2025 RESULTS PRESENTATION 1211

FORTERRA PLC 2025 RESULTS PRESENTATION 13

Strategy And Markets

Source: NHBC

2025

2024

2023

2022

2021

Source: Ministry of HCLG

2021 2022 2023 2024 2025

5,000

50,000

10,000

100,000

+2%

15,000

20,000

+11%

150,000

25,000

200,000

LARGE HOUSEHOLDER EXTENSIONS

NEW HOME REGISTRATIONS (NHBC)

No.

No.

• Modest increase in new housing registrations seen in 2025

• RM&I market remains more suppressed

• Medium / long-term market fundamentals remain attractive

FORTERRA PLC 2025 RESULTS PRESENTATION 14

Strategy And Markets

OUR STRATEGY IS BUILT ON TWO KEY PILLARS: THE MARKETS WE SERVE:

25%

FORTERRA PLC 2025 RESULTS PRESENTATION 1511

Strategy And Markets

CREATING VALUE THROUGH:

• Customer synergies

• Distribution synergies -dedicated own fleet of distribution vehicles

• Manufacturing / procurement synergies - purchasing power and economies of scale

• Circular economy - waste product including brick and aircrete used in manufacture of aggregate blocks

REVENUE:

Bison 21%

Bricks

52%

Blocks

27%

BRICKS

Extruded / Soft mud / London Brick

PRECAST FLOORING

Hollowcore Jetfloor

Beam & Block

FORTERRA PLC 2025 RESULTS PRESENTATION 16

REVENUE

52%

Strategy And Markets

% OF MARKET

DOMESTIC DELIVERIES (MAT)

IMPORTS

2021 2022 2023 2024 2025

-%

0

25%

2.5

IMPORTS AS % OF MARKET

Remain broadly flat

BRICK DELIVERIES

2025

2024

2023

2022

2021

0

1

+6%

DOMESTIC BRICK DELIVERIES

Increased 6% (vs. 2024)

2

• Forterra capacity currently operating at c.60% utilisation

DEMAND AT 300k

DEMAND (2022 LEVELS)

2025E

capacity

Ibstock

Atlas + Aldridge

2014E Other new Forterra

capacity capacity + inc.

closures Desford

closed

(Others)

closed

(Forterra)

Permanently Permanently

2007E

capacity

1.5

2.0

2.1

2.0

2.6

2.5

3.0

EVOLVING DOMESTIC BRICK CAPACITY

Significant capacity deficit at 300,000 home government target

Bricks (bn)

Bricks (bn)

Bricks (bn)

FORTERRA PLC 2025 RESULTS PRESENTATION 17

Strategy And Markets

WILNECOTE RECOMMISSIONING NEAR COMPLETE

• c.£30m redevelopment of our Wilnecote factory is almost complete

• Capacity for 35 million premium bricks

• Attractive margins focusing on commercial and specification market

• Commissioning of specification focused product range underway

BRICK CAPACITY

IN NEXT TURN OF CYCLE

+15%

CAPITAL PROJECTS

NEAR COMPLETION

FORTERRA PRODUCT WEIGHTING VS. MARKET

Forterra*

Market**

-%

20%

40%

60%

80%

100%

EXTRUDED

SOFT MUD

Note: * Forterra excluding Fletton

** Market excluding Forterra

FALL IN SOFT

MUD BRICK DEMAND IN 2025

-1%

GROWTH IN

EXTRUDED BRICK DEMAND IN 2025

+9%

FORTERRA PLC 2025 RESULTS PRESENTATION 18

Strategy And Markets

BUILDING THRU-WALL

SYSTEM VALUE SPLIT

RAINSCREEN FAÇADE

73%

100% OF THRU-WALL

FORTERRA PLC 2025 RESULTS PRESENTATION 19

Strategy And Markets

The Omnia system is available with a comprehensive range of brick slips:

EXTRUDED SLIPS

• Purpose made slips manufactured at our new £12m facility in Accrington

• Capacity to produce c.50m extruded slips per annum

• With less waste than a conventional cut slip - this is our most cost effective and sustainable solution

  CUT SLIPS

• Complementing our extruded slips range, we are investing £1.5m in an in-house brick cutting facility enabling specifiers to choose from almost any traditional brick to convert into brick slips

FORTERRA PLC 2025 RESULTS PRESENTATION 20

REVENUE

27%

Strategy And Markets

AIRCRETE BLOCK (THERMALITE)

AGGREGATE BLOCK

• National market position in aircrete

• High exposure to new build single family housing

• Synergy with brick business - Forterra is the only provider of the full cavity wall

• Below ground use offers protection against timber frame penetration

• Future opportunities to invest in aircrete business to protect market position and improve efficiency

• South East regional position in aggregate blocks

  (strongest demand and pricing)

• London market currently suffering with affordability challenges

• High product strength ideal for use in multi-family accommodation

• Multi-family projects slowed due to building safety regulator

DOMESTIC BLOCK DELIVERIES

BROADLY FLAT SINCE 2023

50

-

2021

2022

2023

2024

2025

Aggregate block

Aircrete block

million m2

FORTERRA PLC 2025 RESULTS PRESENTATION 21

REVENUE

21%

Strategy And Markets

BEAM AND BLOCK FLOORING

Equivalent of

new homes In 2025

BISON PRECAST

• National market

• Strong positions with major housebuilders - majority new build focused

• Housebuilder offering includes full technical design service

• Specified by housebuilder but often purchased and installed by ground workers

  30,000+

• Performance beyond 2022 levels despite weaker market

• Leverages being part of wider Forterra commercial structure

• Low capital employed

FORTERRA PLC 2025 RESULTS PRESENTATION 22

Strategy And Markets

DECARBONISING THROUGH INNOVATION...

65MM BRICKS

Focussing on m2 emissions:

• 65mm bricks

• Reduced clay usage

• Beam design (less steel)

• Calcined clay

Product innovation

DECARBONISING ng the

MANUFACTURING PROCESSES we use in

cturing our

OVER TIME: s whether

• Hydrogen increased

• Carbon capture ion sizes on

thinner bricks and slips

Less material = less emissions per m2

REDUCED CLAY USAGE

Optimising clay usage through perforation sizes

CALCINED CLAY

Utilising calcined clay from waste bricks within aggregate block manufacturing

OPTIMISED BEAM DESIGN

Reducing steel usage whilst maintaining optimum performance

…WHILST PREPARING FOR THE FUTURE

HYDROGEN READINESS

Ensuring our factories are ready for future connections

CARBON CAPTURE OPTIONALITY

Reduci

material manufa product through perforat

Monitoring carbon capture solutions as technology matures

FORTERRA PLC 2025 RESULTS PRESENTATION 23

Strategy And Markets

• Our capital allocation priorities are designed to facilitate the delivery of our strategy over the medium-term, maximising stakeholder value, retaining leverage of under 1.5 times adjusted EBITDA

  01

  ORGANIC INVESTMENT

  • Reduced spend relative to recent years

  • Potential strategic organic investment to maintain market positions and competitiveness

02

DIVIDEND

• Attractive ordinary dividend with a coverage of approximately 2x earnings

03

SUPPLEMENTARY RETURNS

• Return of capital to shareholders commenced

• Initial £20m buyback programme to be completed in 2026

• Expect programme to continue beyond 2026

04

BOLT ON M&A

• Bolt-on acquisitions as suitable opportunities arise to accelerate growth,

particularly beyond the core

FORTERRA PLC 2025 RESULTS PRESENTATION 24

FORTERRA PLC 2025 RESULTS PRESENTATION 25

Outlook

• Subdued market conditions have continued into early 2026 with exceptionally wet weather making it difficult to assess the market

• 2026 demand anticipated to be similar to 2025, weighted towards the second half

• Annual pricing negotiations expected to recover cost inflation

• 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 EBITDA

  to be slightly ahead of 2025

  FORTERRA PLC 2025 RESULTS PRESENTATION

  26

  
  
  
  
  

  Investment Case

  WELL POSITIONED FOR FUTURE CYCLES

• Growth illustration assumes:

  • Return to 2022 levels of profitability (208k completed new homes vs.174k in 2025)

  • Incremental £32m benefit from Desford and Wilnecote projects (assuming normalised market)

• Proforma Group adjusted EBITDA of c.£120m

• Further potential upside from excellence programmes, brick slips and calcined clay

  £32m

  +

  £26m

  +

  FUTURE GROWTH

  £120m

DESFORD AND WILNECOTE RECOVERY TO 2022 VOLUMES

EXCELLENCE PROGRAMMES BRICK SLIPS CALCINED CLAY

MARKET RECOVERY AND CURRENT STRATEGIC PROJECTS

£62m

2025 EBITDA

FORTERRA PLC 2025 RESULTS PRESENTATION 27

Investment Case

• Complementary product range with strong cross product synergy

• Trusted and respected leading brands

• High barriers to entry supported by secure longterm mineral reserves

• Well-invested, efficient and profitable asset base

• Strong customer relationships

• Market demand driven by structural, through-cycle new housing shortage and resilient RM&I markets

• Cyclical recovery story

• Government desire to increase new housing supply

• Structural undersupply

  of domestically manufactured bricks

• Diversification through exposure to RM&I market

• Consolidated market structures

• £140m programme of investment virtually complete, improving efficiency and increasing brick production capacity by 15%

• Opportunity for further selective organic investment

• Proven delivery of innovation and operational excellence

• Brick slip investment provides renewed exposure to the high rise market segment

• Inherently sustainable and durable products

• Ambitious ESG targets to 2030

• Focus on innovation to deliver more sustainable products for the future

• Strong cash generation creates capital allocation optionality

• Leverage to be maintained below 1.5x adjusted EBITDA

• Modest future organic investment projects

• Attractive dividend policy with a coverage of 2x earnings

• £20m share buyback programme underway with intention to continue in future years

• Scope for selective bolt-on acquisitions focused beyond

FORTERRA PLC 2025 RESULTS PRESENTATION

the core

28

FORTERRA PLC 2025 RESULTS PRESENTATION 29

Appendices:

*Adjusted results

FORTERRA PLC 2025 RESULTS PRESENTATION 30

Appendices:

• Restructuring costs relate to the exit of the Bison Bespoke Precast and Formpave businesses. The cash outflow is expected

  to be £2.7m with the remainder comprising non-cash impairment charges

• Fair value movement on energy derivatives is effectively just a timing difference. The adjusted result reflects the actual cost of purchasing the energy consumed in the year

FORTERRA PLC 2025 RESULTS PRESENTATION 31

Appendices:

FORTERRA PLC 2025 RESULTS PRESENTATION 32

Forterra plc

5 Grange Park Court, Roman Way, Northampton

NN4 5EA

Tel: 01604 707600