Leicestershire brickmaker Ibstock has issued its second profit warning of the year, blaming weak September and October trading. It now expects full-year adjusted earnings before interest, tax, depreciation and amortisation to land in the mid-£40 million range, down from a previous expectation around the lower end of £59 million to £68 million.

The downgrade follows a sharp deterioration in trading during the third quarter. Clay and brick sales in that period came in 22 per cent below expectations, and the company has cut production by about a fifth against its half-year plans to match lower demand. It said weaker sales volumes, together with fixed costs spread across fewer bricks, would reduce earnings by around £6 million on top of the sales impact.

Shares fall as outlook is lowered

Investors reacted quickly to the update on Monday. The share price, which closed at 80.65p on Friday, had fallen by 13 per cent to 70.10p by noon, according to Construction News. Reuters also reported a sharp fall to a record low on the day. It said it had cut output and costs and kept tight control of cash, while continuing work to commission its Nostell factory in Yorkshire.

First-time buyer scheme offers later hope

Ibstock pointed to the government's £4.7 billion Your First Home scheme as a reason for medium-term confidence. The scheme will offer 20 per cent equity loans to certain first-time buyers from April 2027, which the company said could improve affordability and stimulate new-build demand. Its complaint is timing: the delay until April 2027 has added pressure on near-term demand. The warning follows a difficult first half, in which the group recorded a statutory £27 million pre-tax loss, against an £8 million profit a year earlier.

Sources: Construction News, 2 November 2026; Reuters, 2 November 2026.