Finance
UK's Ibstock warns of profit drop amid construction market woes
Published by Global Banking & Finance Review®
Posted on October 10, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 10, 2025
2 min readLast updated: January 21, 2026
Ibstock warns of profit drop due to UK construction market challenges, impacting shares and highlighting ongoing sector issues.
(Reuters) -Bricks and concrete maker Ibstock warned on Friday that its annual profit would fall below expectations amid persistent weakness in UK construction, sending shares down as much as nearly 15% in early trading.
The profit warning underscores growing challenges for construction material suppliers in the UK, as builders pull back amid economic uncertainty. The sector is already grappling with weak activity in residential construction.
The Leicestershire-based company said its clay and concrete segment's revenues were hit in the third quarter, and sales volumes in the second half of the year will be in line with those clocked in the first half.
"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", CEO Joe Hudson said in a statement.
It expects second-half core profit to be similar to the first half's 35.5 million pounds ($47.17 million), as cautious customers in an uncertain economy limit sales volumes and its ability to raise prices.
The firm had previously guided core profits to be in the range of 77 million pounds to 82 million pounds for 2025.
British construction activity shrank for a ninth straight month in September as firms held off on major investments ahead of November's budget, a business survey showed.
"It has been a tough year, with a sluggish new housing market at the root of the volume softness" Peel Hunt analysts said, adding that general budget uncertainty was not helping matters.
($1 = 0.7527 pounds)
(Reporting by Nithyashree R B and Raechel Thankam Job in Bengaluru; Editing by Harikrishnan Nair)
A profit warning is a statement issued by a company indicating that its earnings will fall below market expectations, often due to unforeseen circumstances affecting its business operations.
Residential construction refers to the building of homes and apartments, which includes single-family homes, multi-family units, and other types of housing developments.
Economic uncertainty refers to a situation where there is a lack of predictability regarding the economic environment, which can affect consumer confidence, spending, and investment decisions.
Core profits are the earnings generated from a company's primary business operations, excluding any income from non-operational activities such as investments or asset sales.
Sales volume refers to the total quantity of goods or services sold by a company during a specific period, often used to assess business performance.
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