Ibstock shares fell sharply after the brickmaker reported full-year results that met forecasts but revealed weaker cash generation and a substantial dividend cut. Adjusted EBITDA for 2025 was £71 million with earnings per share at 5.7 pence, yet free cash flow was negative £17 million and the shareholder payout was slashed to 3 pence per share.

Analysts at RBC Capital Markets warned the update signals a softer trading environment, citing poor weather dampening demand at the start of 2026. They expect consensus forecasts to be revised down significantly, with volume growth assumptions falling to around 0% from 2-3%. This could push 2026 adjusted EBITDA estimates into the high £60 million range from roughly £75 million.

Pricing remains stable with clay brick increases of 2-3% holding since February. The company has hedged about 80% of its 2026 energy needs, primarily for the first three quarters. Net debt held steady at approximately £120 million, aided by £30 million in asset disposals. The stock’s decline reflects investor skepticism about a swift recovery.