EL7.AI
StocksMedium•11 November 2026•
3 min read

Forterra cuts 2026 profit outlook to £50 million as revenue decline accelerates

Key Facts

1Forterra cut its 2026 adjusted earnings before interest, tax, depreciation and amortisation forecast to about £50 million, versus company-compiled consensus of £54.8 million.
2Revenue was £282.7 million in the ten months to 31 October 2026, down 11.9% on a like-for-like basis, compared with a 9.3% decline in the first half.
3UK brick industry shipments fell 11% in the nine months to 30 September 2026, compared with an 8% decline in the first half.
4The company targeted cost savings of about £1 million in the second half of 2026, equivalent to £2 million annually.

Forterra cut its forecast for adjusted earnings before interest, tax, depreciation and amortisation for the 2026 financial year to about £50 million, compared with company-compiled consensus of £54.8 million, according to a trading update published on 11 November. The company said lower sales volumes and reduced fixed-cost absorption weighed on profitability after production was aligned with demand. Revenue was £282.7 million in the ten months ended 31 October, down 11.9% on a like-for-like basis from the corresponding period. The decline was 9.3% in the first half, indicating that the fall accelerated in the more recent period. Forterra expects leverage to be about 1.9 times at the end of the financial year.

The company’s weaker revenue coincided with a broader downturn in the UK brick market, where industry shipments fell 11% in the nine months ended 30 September, after declining 8% in the first half. Forterra said this reflected a further deterioration in demand compared with the previous period. Demand for repair, maintenance and improvement remained weak, particularly for home extensions, and was close to demand for new-build construction. UK Department for Business and Trade statistics also showed brick deliveries falling 15.4% in September from the same month a year earlier and 4.0% from August. By contrast, the Ministry of Housing estimated that 35,910 homes were started in England in the second quarter, up 6% from the first quarter and 20% year on year.

Forterra said it had maintained its share of the brick market and that underlying selling prices remained broadly in line with management expectations. The company continued to align production with demand to limit inventory build-up and exposure to uncovered gas costs. It said it had secured about 80% of its gas requirements for the 2027 financial year. It also targeted cost savings of about £1 million in the second half of 2026, equivalent to £2 million on an annualised basis. The company expects to complete the sale of two surplus land assets before year-end, for gross proceeds of about £12 million, subject to completion of the transaction.

The £20 million share buyback programme is due to be completed in December 2026. As of 31 October, the company had bought back 12,049,421 shares at a cost of £17.7 million. Forterra announced price increases to offset inflation, effective from January 2027. But it said its fixed-cost base would continue to weigh on profitability unless sales volumes improved materially. It noted that the UK government’s “Your First Home” programme would begin in April 2027 after a delay, while housing affordability pressures and consumer confidence mean market conditions will remain challenging in the near term. The company’s financial year ends on 31 December 2026.