Forterra Maintains Full Year Guidance as Revenue Surges 16%

Forterra trading update: revenue up 16% and guidance held

Forterra has kept full year guidance intact after a solid ten months to 31 October 2025. Year-to-date revenue is £336m, up 16% on last year’s £290m. Management expects second-half despatches and revenue to look much like the first half, with adjusted EBITDA in H2 set to be “modestly ahead” of H1.

In short, a steady-as-she-goes update: momentum has cooled from the summer peak, but the business is executing, market share is recovering, and the big capacity projects are coming online on time.

Key figures at a glance

Metric	Figure / Comment
YTD revenue (10 months to 31 Oct 2025)	£336m
Prior year YTD revenue	£290m
YTD revenue growth	16%
Revenue growth in the last four months	10% year-on-year
H1 revenue growth	20.4% year-on-year
H2 despatches and revenue	Expected similar to H1
H2 adjusted EBITDA	Expected modestly ahead of H1
Brick despatches (industry, 9 months to Sep 2025)	Up 10% vs 2024
Leverage	A little above 1x adjusted EBITDA (banking covenant basis)
Year-end net debt (before leases)	Expected below H1 level (exact figure not disclosed)

New build beats RMI: the demand mix matters

Forterra says new build housing is its strongest segment, while RMI – repair, maintenance and improvement – remains depressed. That skew is helping because the company has greater exposure to extruded or wire cut bricks rather than soft mud bricks. Extruded bricks are typically used in volume housebuilding and can be produced efficiently at scale, so the current mix plays to Forterra’s strengths.

The company does flag “tougher prior year comparatives” and a recent moderation of demand from mid-year run rates. That is why growth in the past four months has been 10% versus 20.4% in H1. It is not a reversal, just a normalisation as the industry cycles off weaker 2024 comps and restocking fades.

Brick market backdrop: despatches up, imports subdued

Industry data from the Department for Business and Trade shows UK brick despatches up 10% for the nine months to September 2025 versus 2024. Forterra adds that brick imports remain subdued and, while ahead of last year in absolute terms, are flat as a percentage of consumption. That is helpful for domestic producers’ pricing discipline and utilisation.

Encouragingly, Forterra says its own brick market share is continuing to recover toward longer-term norms. No percentage is disclosed, but the direction implies better factory loading and customer wins as the market stabilises.

Capacity and operations: Desford firing, Wilnecote imminent, Accrington slips

Operationally, the update is confident. The revamped Desford plant now has both kilns operational, ramping production of extruded bricks. That supports customers after the significant destocking seen through 2025. Destocking refers to distributors and builders running down inventories, which can temporarily suppress orders even if end-demand is stable.

Construction at Wilnecote is nearing completion, with commissioning underway and first bricks due ahead of year end. Wilnecote targets the premium commercial and specification market – higher value products that can lift mix and margins when demand returns.

At Accrington, Forterra is finalising an initial range of brick slips – thin brick facings used for cladding and interiors. That opens a complementary product line with attractive specification demand. Meanwhile, the closures of Bison Bespoke and Formpave have been completed, tidying up the portfolio and focusing capital where returns look best.

Financial position and leverage: quietly improving

Forterra expects year-end net debt before leases to be below the H1 level, and leverage to be a little above one times adjusted EBITDA on a banking covenant basis. Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, excluding certain items, and is a common yardstick for lenders and investors.

Specific debt and cash figures are not disclosed, but the direction of travel is positive: improving balance sheet, low leverage, and capex projects nearing completion. That combination should give Forterra optionality if the market recovers in 2026.

Guidance and outlook: steady H2 with a nod to uncertainty

Guidance is unchanged. Management expects H2 despatches and revenue at similar levels to H1, and H2 adjusted EBITDA modestly ahead of H1. There is an explicit note of economic uncertainty and its drag on current demand, but the medium-term case is intact: a housing shortfall, political impetus to build more, and constrained supply of essential building products.

In other words, 2025 remains a rebuilding year, not a boom year. The important bit is Forterra’s readiness – capacity in place, product mix favourable, and balance sheet under control.

What looks positive in this RNS

• Revenue resilience: Up 16% year-to-date despite softer RMI and moderating growth into H2.
• Favourable mix: Stronger new build and extruded bricks suit Forterra’s footprint.
• Market share recovery: Gaining back ground as the sector normalises.
• Capacity milestones: Desford fully operational; Wilnecote commissioning now; Accrington brick slips imminent.
• Financial discipline: Output matched to demand; leverage a little above 1x adjusted EBITDA; net debt trending down.

What to watch and potential risks

• Demand moderation: Growth cooled to 10% in the last four months versus 20.4% in H1 – keep an eye on order run rates.
• RMI weakness: Continued softness in repair and maintenance could cap volumes in certain product lines.
• Pricing and imports: Imports are subdued, but any rebound could pressure pricing if domestic capacity rises faster than demand.
• Execution at Wilnecote and Accrington: Commissioning risk is typical at this stage, even though timelines look on track.

My take: credible execution, set up for the upcycle

This reads like a well-managed recovery. Forterra is holding guidance, ramping its flagship Desford site, bringing Wilnecote on stream, and seeding growth in brick slips. The industry backdrop is improving just enough to support utilisation without encouraging a glut, and market share is heading the right way.

It is not all clear skies – RMI remains down, and the demand moderation since mid-year is real. But with net debt easing and leverage low, Forterra has the flexibility to ride out bumps and benefit when new build demand strengthens. For long-term holders, this update supports the thesis that 2025 is the bridge to a healthier 2026.