Ibstock has seen its share price drop by over 6% after it stated that a more uncertain near-term backdrop has led to weaker than expected demand.

The construction firm said that this backdrop has gone on to impact its clay and concretes revenues during the third quarter.

The company stated that market share in the third quarter based on published industry data was ahead of the comparative period and was in line with the first half of the 2025 year.

However, in light of softer market demand, sales volumes in the second half are now expected to be in line with the first half of the year.

Furthermore, Ibstock cited a continued shift in sales mix towards new-build residential demand as limiting its ability to achieve targeted pricing levels.

As a result, the construction company has lowered its EBITDA guidance from a range of £77m and £82m to £72m.

Chief executive officer at Ibstock, Joe Hudson, said: "With clear, long term structural imperatives for residential construction growth, it is disappointing that additional near term headwinds are impacting momentum in our markets in the latter part of the year. In spite of this difficult and uncertain market backdrop, the group has continued to make good operational progress and maintain share.

"Whilst it remains difficult to predict the pace and timing of market recovery, we will continue to focus on strong execution and progressing our long-term strategic growth projects. These initiatives, combined with the increasing contribution from our recent investments, leave us well positioned to benefit as the market returns."

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said that this weakness is expected to continue into the back end of the year, with uncertainty around property taxes and the Autumn Budget keeping "a lid on construction starts" in the near term.

He concluded: "The profit downgrade is the group’s second of the year. While it’s difficult to predict the pace and timing of a building market recovery, another downgrade does raise some questions around whether management’s guidance is built on shaky foundations.

"With high fixed costs and dividend payments having already been trimmed back, Ibstock will need to keep an extra tight grip on cash flows if it wants to avoid disappointing investors again."

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