Forterra

Website: Forterra
Index: FTSE Small Cap
EPIC: FORT
Supersector: Construction and Materials
Sector: Construction and Materials
Subsector: Building Materials and Fixtures
Market Cap: £346.87M
Payout Frequency: Semi-Annual

Next Forterra Dividend

Forterra next goes ex-dividend on 11/06/2026. This will be the Final dividend for 2026.

The dividend per share amount is 4.3000p (GBP) and the payment date is 06/07/2026.

Dividend details

Final dividend: 4.3p per share (2024: 2.0p), subject to AGM approval
Total DPS for 2025: 6.2p (2024: 3.0p), up 106.7%
Ex-dividend date: 11/06/2026 (derived from record date)
Record date: 12/06/2026
Payment date: 06/07/2026
Dividend policy: ~50% payout of adjusted earnings, targeting ~2x cover
Earnings cover: Adjusted EPS 12.6p vs DPS 6.2p (~2.0x cover; payout ~49%)

Capital allocation and other shareholder returns

Share buyback: Initiation of a £20m buyback in 2026, with intention to continue beyond year-end (kept under review)
Leverage: Net debt (pre-leases) £55.7m, c.1.0x leverage; RCF £170m to June 2028 with £108m headroom
Capex trend: Lower, guided at ~£15m p.a. medium-term, supporting free cash flow and dividend capacity

Dividend sustainability and outlook

COVER AND CASH: DPS covered ~2.0x by adjusted EPS (12.6p). Adjusted operating cash flow of £68.7m vs total DPS cash cost of ~£13m indicates strong cash cover; 2025 dividends paid were £8.2m (prior-year final + 2025 interim).
EARNINGS TRAJECTORY: Adjusted EPS rose 66% to 12.6p; management guides 2026 adjusted EBITDA to be slightly ahead of 2025 absent a strong demand recovery.
BALANCE SHEET: Leverage around 1.0x with ample liquidity; facility covenants comfortably met. Lower capex and operating discipline underpin ongoing distributions.
POLICY ALIGNMENT: The 6.2p DPS is broadly 50% of adjusted earnings, consistent with the updated policy targeting c.2x cover and a progressive ordinary dividend.

Structural changes and policy signals impacting future dividends

Share buyback programme (£20m in 2026): Returns surplus capital while keeping leverage near current levels; buybacks can enhance per-share metrics and support progressive DPS over time.
Portfolio actions: Exit of non-core Formpave and Bison Bespoke Precast; some assets held for sale. These moves are margin/cash accretive and may release capital, indirectly supportive for dividends.
Capital allocation framework: Clear prioritisation—organic investment, progressive dividend (~50% payout), supplementary returns (buybacks), and selective bolt-on M&A.

Risks and flags to dividend stability

End-market cyclicality: Housing/RMI demand remains subdued; 2026 activity weighted to H2. Management expects similar demand to 2025; any prolonged weakness could pressure earnings.
Pricing and mix: Stable brick pricing but adverse mix toward extruded bricks; competitive dynamics could cap pricing power if demand softens.
Energy and macro: Gas ~80% fixed for 2026 mitigates volatility, but geopolitical risks remain a watchpoint.
Downside levers: In a plausible downside, buybacks would be paused; under a severe reverse stress, management notes potential “curtailment in the quantum of dividend distributions.”
Operational adjustments: Recent production reductions in certain lines underline sensitivity to volume; however, cost/efficiency programmes and capex flexibility provide buffers.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
12/06/2025	04/07/2025	Final	2.00p	GBX
18/09/2025	10/10/2025	Interim	1.90p	GBX

Total (Annual Dividends Per Share): 3.90p

Dividend Yield = Annual Dividends Per Share (3.90p) ÷ Share Price (163p) = 2.39%

Ex Dividend Date	Payment Date	Type	Amount	Currency
11/06/2026	06/07/2026	Final	4.3000p	GBX
18/09/2025	10/10/2025	Interim	1.90p	GBX
12/06/2025	04/07/2025	Final	2.00p	GBX
19/09/2024	11/10/2024	Interim	1.00p	GBX
13/06/2024	05/07/2024	Final	2.00p	GBX
21/09/2023	13/10/2023	Interim	2.40p	GBX
15/06/2023	07/07/2023	Final	10.10p	GBX
22/09/2022	14/10/2022	Interim	4.60p	GBX
16/06/2022	08/07/2022	Final	6.70p	GBX
23/09/2021	15/10/2021	Interim	3.20p	GBX
17/06/2021	09/07/2021	Final	2.80p	GBX
18/06/2020	09/07/2020	Final	7.50p	GBX
19/09/2019	10/10/2019	Interim	4.00p	GBX
13/06/2019	04/07/2019	Final	7.20p	GBX
20/09/2018	11/10/2018	Interim	3.30p	GBX
14/06/2018	05/07/2018	Final	6.40p	GBX
21/09/2017	12/10/2017	Interim	3.10p	GBX
15/06/2017	06/07/2017	Final	3.80p	GBX
29/09/2016	19/10/2016	Interim	2.00p	GBX

Year	Interim	Final	Currency	Total	Change
2024	1.000	2.000	GBX	3.000	-76.000
2023	2.400	10.100	GBX	12.500	10.610
2022	4.600	6.700	GBX	11.300	88.330
2021	3.200	2.800	GBX	6.000	-20.000
2020		7.500	GBX	7.500	-33.030
2019	4.000	7.200	GBX	11.200	15.460
2018	3.300	6.400	GBX	9.700	40.570
2017	3.100	3.800	GBX	6.900	245.000
2016	2.000		GBX	2.000

Number of Shares:

Payment	Paid	Amount
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