Ibstock has reported a "solid performance" in 2025, as its revenue grew by 2% year-on-year to £372m.

The building products and solutions manufacturer said the figure came despite operating in “more challenging market conditions”.

Ibstock stated that while its total brick market volume, which totalled £1.85bn in the year to 31 December, was materially below the record £2.5bn set in 2022, its clay market share in the 11 months to November was ahead of the comparative period.

Furthermore, its Q4 performance benefited from cost reduction action and stable pricing, with its full-year EBITDA anticipated to be in line with previous guidance, which was dropped to £71m in October.

The firm has also stated that it has taken "decisive cost action" to reduce headcount and right-size overall group capacity to near market dynamics.

Meanwhile, its investment projects at its Atlas and Nostell brick factories are largely complete, with the facilities set to begin their production phase in 2026.

Chief executive at Ibstock, Joe Hudson, said: "[Last year] started well, with a solid increase in volumes, before market uncertainty led to progressively tougher conditions through H2.

"With continuing market leadership, recent major investments substantially complete, and a strengthened balance sheet following non-core disposals in Q4, the group is well positioned to capitalise on the market recovery and generate increasing amounts of free cash flow. This will provide significant optionality in respect of future growth and capital returns."

In its outlook, Ibstock said the residential construction and RMI markets are expected to remain subdued in the near-term with an anticipation of some modest year-on-year growth expected in the second half of the year as markets recover.

The firm stated that it will be actively managing production volumes and inventory in the first half, which will create a margin headwind for 2026 but benefit overall cash generation.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, concluded: "While brick volumes have risen and helped to drive the top line higher, they’re still some way off the heights of 2022. Market uncertainty ahead of the later-than-usual UK Budget last year kept a lid on construction starts, ultimately causing Ibstock to downgrade its cash profit guidance to around £71m in October.

"While the market hasn’t picked up since, a tight grip on costs and some disposals of non-core assets mean that the previously downgraded profit target looks well within reach when full-year results are announced in March."

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