Forterra (LON:FORT) Announces Quarterly Earnings Results

Forterra (LON:FORT) posted its quarterly earnings data on Tuesday. The company reported GBX 4.10 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Forterra had a net margin of 5.09% and a return on equity of 7.98%.

Here are the key takeaways from Forterra’s conference call:

• Resilient first-half performance despite weak demand: Like-for-like revenue fell 9% to £169 million as volumes declined, while adjusted EBITDA was £27 million and the margin improved 70 basis points to 16%. Adjusted PBT declined 12.7% to £14.5 million, and management expects full-year performance to remain in line with market consensus.
• Market conditions remain challenging: Domestic brick dispatches fell 8%, NHBC housing starts excluding flats and apartments were down 9%, and RMI activity remained subdued amid higher interest rates, reduced mortgage availability and weak consumer confidence. Management expects second-half demand to be broadly consistent with the first half.
• Pricing and energy hedging are supporting margins: Forterra implemented low-single-digit brick price increases plus transport and energy surcharges, while approximately 80% of expected 2026 gas usage and 2027 coverage is secured at pre-conflict pricing. The company also has layered energy positions through 2030 and electricity price certainty from its solar operations through 2040.
• Capital discipline and shareholder returns remain priorities: Net debt was £74.5 million, keeping leverage below 1.5x, and the £20 million share buyback is expected to be completed in the second half. Forterra also extended its £170 million revolving credit facility to July 2030, with lower interest costs and a move from secured to unsecured borrowing.
• Strategic growth initiatives are progressing: Desford continues to ramp up, Omnia brick slips have secured initial projects and a growing pipeline, and Forterra is exploring a calcined-clay joint venture. The company is also evaluating a roughly £60–£65 million Aircrete replacement facility, partly funded by the potential £25 million sale of the Hams Hall site, although no final investment decision has been made.

Forterra Stock Performance

LON FORT opened at GBX 138.60 on Thursday. The firm’s 50 day simple moving average is GBX 135.30 and its 200 day simple moving average is GBX 157.69. The firm has a market capitalization of £284.26 million, a price-to-earnings ratio of 17.32, a P/E/G ratio of 0.30 and a beta of 0.73. The company has a current ratio of 1.57, a quick ratio of 0.82 and a debt-to-equity ratio of 43.78. Forterra has a 1 year low of GBX 126.40 and a 1 year high of GBX 206.

Insider Buying and Selling at Forterra

In other Forterra news, insider Neil Ash acquired 11,500 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The stock was acquired at an average cost of GBX 133 per share, for a total transaction of £15,295. Also, insider Nigel Lingwood acquired 25,000 shares of Forterra stock in a transaction that occurred on Friday, June 12th. The stock was acquired at an average cost of GBX 133 per share, for a total transaction of £33,250. Insiders have acquired 54,000 shares of company stock valued at $7,164,500 over the last 90 days. Corporate insiders own 0.46% of the company’s stock.

Key Forterra News

Here are the key news stories impacting Forterra this week:

• Positive Sentiment: Buy ratings maintained: Deutsche Bank reaffirmed its “buy” rating with a GBX 250 price target, while Jefferies also maintained “buy” with a GBX 160 target. These targets imply potential upside from recent trading levels. Broker rating updates
• Positive Sentiment: RBC remains constructive: Royal Bank of Canada cut its target from GBX 195 to GBX 180 but retained an “outperform” rating, suggesting the weaker outlook is already partly reflected in the valuation. RBC rating update
• Neutral Sentiment: New CFO appointed: Forterra named Lisa Oxnard as chief financial officer, adding an experienced finance executive to its leadership team. The appointment is strategically relevant but does not immediately change the company’s operating outlook. Forterra appoints Lisa Oxnard as CFO
• Negative Sentiment: Revenue declined 13.5%: Forterra reported lower first-half revenue as weak demand for its products persisted amid a challenging construction market. The company’s quarterly results included earnings per share of GBX 4.10, with profitability metrics also reported at relatively modest levels. Forterra first-half results
• Negative Sentiment: Brick sales weakness expected to continue: Industry coverage indicates that declining brick sales are not likely to reverse quickly, reinforcing concerns about near-term volumes, pricing and earnings recovery. Brick sales slide at Forterra
• Negative Sentiment: Mixed analyst outlook: Berenberg reaffirmed a “hold” rating at GBX 170, while RBC’s target reduction signals that analysts are tempering expectations despite retaining some confidence in Forterra’s longer-term prospects. Analyst rating updates

Wall Street Analyst Weigh In

Several research analysts have recently commented on FORT shares. Berenberg Bank reaffirmed a “hold” rating and set a GBX 170 target price on shares of Forterra in a report on Wednesday. Royal Bank Of Canada cut their price target on Forterra from GBX 195 to GBX 180 and set an “outperform” rating for the company in a research note on Wednesday. Jefferies Financial Group reissued a “buy” rating and set a GBX 160 price target on shares of Forterra in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a GBX 250 price objective on shares of Forterra in a research note on Wednesday. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Forterra has an average rating of “Moderate Buy” and an average target price of GBX 198.

About Forterra

Forterra is a leading UK manufacturer of essential clay and concrete building products, with a unique combination of strong market positions in clay bricks, concrete blocks and precast concrete flooring. Our heritage dates back many decades and the durability, longevity and inherent sustainability of our products is evident in the construction of buildings that last for generations; wherever you are in Britain, you won’t be far from a building with a Forterra product within its fabric.

Our clay brick business combines our extensive secure mineral reserves with modern and efficient high-volume manufacturing processes to produce large quantities of extruded and soft mud bricks, primarily for the new build housing market.