Ibstock

Website: Ibstock
Index: FTSE 250
EPIC: IBST
Supersector: Construction and Materials
Sector: Construction and Materials
Subsector: Building Materials and Fixtures
Market Cap: £409.71M
Payout Frequency: Semi-Annual

Next Ibstock Dividend

Ibstock next goes ex-dividend on 07/05/2026. This will be the Final dividend for 2026.

The dividend per share amount is 1.5000p (GBP) and the payment date is 29/05/2026.

Declared Dividend

How well is the dividend supported?

Profitability: Adjusted EBITDA £71m (-10% YoY); adjusted EPS 5.7p (-26%). Dividend is covered by earnings but on a reduced base.
Cash generation: Adjusted free cash flow £(9.8)m in 2025 (vs £10.9m in 2024) due to inventory build and higher capex; dividend effectively supported by balance sheet and ~£30m non-core disposals in 2025.
Balance sheet: Net debt £120m (2.0x leverage vs target range 0.5–1.5x). Interest cash cost guided at ~£10m for 2026.
2026 cash uplift drivers: Capex is guiding down to £25–30m (from £44.8m), active inventory management, and major projects (Atlas/Nostell) largely complete, pointing to accelerating free cash flow medium term.
Policy: Ordinary dividend targeted at ~2x cover through the cycle; FY25 payout at 53% is consistent with that framework.

Sustainability and growth trajectory

Sustainability: Current 3.0p dividend is covered by adjusted earnings but was not covered by 2025 free cash flow. Lower 2026 capex and a working-capital unwind should improve coverage; however, management flags a margin headwind in 2026 from volume/inventory actions.
Growth outlook: Dividend was cut 25% YoY; near-term bias is to hold rather than grow until free cash flow normalises. Medium-term potential for growth as Atlas/Nostell ramp, pricing offsets inflation, and markets recover (management points to H2 2026), but timing is uncertain.
Capital allocation: Board reiterates ordinary dividend priority with ~2x cover; surplus capital for growth/returns considered once leverage trends back toward the 0.5–1.5x target.

Structural/one-off factors affecting future dividends

Non-core disposals: Forticrete roofing sites and surplus land sold for ~£30m; management also targets £20–30m further land proceeds over 3–5 years. Disposals support liquidity without materially impacting future performance.
Restructuring: 2025 exceptional charges £19.5m tied to site closures and GRC exit; capacity right-sized with ~£5m annualised cost savings from 2026. Leicester factory temporary closure from April 2026.
Growth capex largely complete: Atlas commissioning and Nostell progressing; depreciation rising to ~£35m in 2026, but efficiencies/new products should aid margins over time.
Financing: £125m RCF refinanced to 2029 at improved pricing; private placement notes fixed at 2.19% coupon—limited near-term refinancing risk.

Key risks and flags to dividend stability

2026 trading headwinds: H1 markets challenging; active volume/inventory management will pressure margins near term.
Cash flow: Negative adjusted FCF in 2025; dividend reliance on disposals/balance sheet support should diminish if 2026 FCF improves as guided—execution risk remains.
Leverage: 2.0x above target range could constrain additional shareholder returns until reduced.
Impairment risk: Management highlights potential for up to £40m asset impairment if long-term brick demand proves structurally lower than forecast.
Cost base and financing burden: Higher depreciation and ~£10m interest weigh on earnings cover.
Macro/energy: Market uncertainty and energy price/geopolitical risks; ~80% of 2026 energy needs hedged offers partial protection.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
08/05/2025	30/05/2025	Final	2.50p	GBX
21/08/2025	15/09/2025	Interim	1.50p	GBX

Total (Annual Dividends Per Share): 4.00p

Dividend Yield = Annual Dividends Per Share (4.00p) ÷ Share Price (103.4p) = 3.87%

Ex Dividend Date	Payment Date	Type	Amount	Currency
07/05/2026	29/05/2026	Final	1.5000p	GBX
21/08/2025	15/09/2025	Interim	1.50p	GBX
08/05/2025	30/05/2025	Final	2.50p	GBX
22/08/2024	13/09/2024	Interim	1.50p	GBX
09/05/2024	31/05/2024	Final	3.60p	GBX
24/08/2023	15/09/2023	Interim	3.40p	GBX
20/04/2023	12/05/2023	Final	5.50p	GBX
18/08/2022	13/09/2022	Interim	3.30p	GBX
14/04/2022	13/05/2022	Final	5.00p	GBX
12/08/2021	17/09/2021	Interim	2.50p	GBX
15/04/2021	14/05/2021	Final	1.60p	GBX
07/05/2020	08/06/2020	Final	6.50p	GBX
15/08/2019	20/09/2019	Interim	3.20p	GBX
15/08/2019	20/09/2019	Special	5.00p	GBX
09/05/2019	07/06/2019	Final	6.50p	GBX
16/08/2018	21/09/2018	Interim	3.00p	GBX
16/08/2018	21/09/2018	Special	6.50p	GBX
10/05/2018	08/06/2018	Final	6.50p	GBX
17/08/2017	22/09/2017	Interim	2.60p	GBX
11/05/2017	09/06/2017	Final	5.30p	GBX
18/08/2016	23/09/2016	Interim	2.40p	GBX
05/05/2016	03/06/2016	Final	4.40p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	1.500	3.600		GBX	5.100	-42.690
2023	3.400	5.500		GBX	8.900	7.220
2022	3.300	5.000		GBX	8.300	102.430
2021	2.500	1.600		GBX	4.100	-36.920
2020		6.500		GBX	6.500	-55.780
2019	3.200	6.500	5.000	GBX	14.700	-8.120
2018	3.000	6.500	6.500	GBX	16.000	102.530
2017	2.600	5.300		GBX	7.900	16.170
2016	2.400	4.400		GBX	6.800

Number of Shares:

Payment	Paid	Amount
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