Ibstock
Website:
Ibstock
Index:
FTSE 250
EPIC: IBST
Supersector:
Construction and Materials
Sector:
Construction and Materials
Subsector:
Building Materials and Fixtures
Market Cap:
£410.42M
Payout Frequency: Semi-Annual
Ibstock Dividend Analysis and Summary
Declared Dividend
- Final dividend: 1.5p per share
- Ex-dividend date: 07/05/2026 (derived from record date)
- Record date: 08/05/2026
- Payment date: 29/05/2026
- Total FY25 dividend: 3.0p (down 25% vs 4.0p in FY24)
- Payout ratio: 53% of adjusted EPS (5.7p) ˜ 1.9x earnings cover
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.
Read more
Ibstock Annual Dividend Yield - 4.03%
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 (99.2p)
= 4.03%
Ibstock Dividend History
| 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 |
|
Ibstock Dividend Calculator
Ibstock Dividend Growth
| Dividend Growth (1Y) |
-25%
|
| Dividend CAGR (5Y) |
13.4%
|
| Years of Growth |
–
|
| Payout Ratio |
513.5%
|
| Buyback Yield |
-1.04%
|
| Shareholder Yield |
1.85%
|
| P/E Ratio (TTM) | 133.32 |
|---|
| Forward P/E | 23.79 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 0.75% |
|---|
| FCF Yield | -1.27% |
|---|
| ROE | 0.79% |
|---|
| ROCE | 4.67% |
|---|
| Profit Margin | 0.83% |
|---|
| Operating Margin | 7.52% |
|---|
| Gross Margin | 28.96% |
|---|