Forterra Reports Weaker First-Half Performance Amid Declining Construction Demand
Forterra reported a decline in first-half revenue and profit due to weaker construction market demand. Like-for-like revenue dropped by 9% year-over-year to £169 million, with adjusted EBITDA falling slightly but the margin improving to 16%. The company attributed this improvement to cost reductions, pricing actions, and closure of non-core operations. Despite lower sales volumes, Forterra maintained a resilient performance through operational efficiency. However, cash flow was impacted by increased working capital requirements, pushing net debt up to £74.5 million. Management expects stronger second-half cash generation and reaffirmed its full-year outlook in line with market expectations. The company also plans to complete a share buyback program and evaluate investment options for an Aircrete facility replacement. CFO Ben Guyatt is set to leave the company by October, succeeded by Lisa Oxenham early next year.
Topics: adjusted EBITDA margin improvement cash flow pressure construction demand revenue decline share buyback