olivLaw · European equity research
Forterra plc FORT.L
United Kingdom · London Stock Exchange · ISIN GB00BYYW3C20 · Vertical: Listed companies from United Kingdom
Forterra plc makes bricks, concrete and masonry products, with a major share of its business in UK residential construction. The group is working through a period of weak housing demand, but its 2025 annual report points to a modest demand recovery and completed investment in new factories. Net debt before leases fell to 55.7 million GBP from 84.9 million GBP, indicating a stronger financial position.
At the close of 05 Nov 2026, Forterra plc (FORT.L) stock was 1.67 GBP (+0.36% on the day), with market capitalisation 351.3 m GBP, P/E 20.9 on diluted EPS of 0.08 GBP over the last 12 months, dividend yield 2.34%, beta 0.75, 52-week range 1.28–1.95 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 65.5
- strong (55–70)
- Bollinger (20, 2)
- 1.46 – 1.72
- in the upper half of the band · %B 0.82 · band width 16.8%
- SMA 50 / 200
- 1.49 / 1.53
- mixed trend
- MACD (12, 26, 9)
- 0.05 / 0.05
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +13.3% | −0.6% | +13.9 pp | — |
| 3 months | +14.3% | −4.2% | +18.5 pp | — |
| 6 months | +5.7% | +4.3% | +1.3 pp | — |
| Year to date | −9.7% | +7.5% | −17.2 pp | — |
| 1 year | −8.3% | +9.9% | −18.2 pp | +5.8% |
| 3 years | +20.4% | +49.8% | −29.4 pp | +26.3% |
| 5 years | −36.8% | +42.8% | −79.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 50 percentile of its own 4-quarter history (min 7.0, median 21.3, max 28.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | 455.5 m | 346.4 m | 344.3 m | 386.0 m |
| Revenue YoY | unavailable | −24.0% | −0.6% | +12.1% |
| Net income | 58.8 m | 12.8 m | 17.5 m | 17.0 m |
| Net income YoY | unavailable | −78.2% | +36.7% | −2.9% |
| Diluted EPS | 0.27 | 0.06 | 0.08 | 0.08 |
| Diluted EPS YoY | unavailable | −76.9% | +33.9% | −3.6% |
| net % | 12.9% | 3.7% | 5.1% | 4.4% |
| Free cash flow | 33.5 m | -53.0 m | 16.8 m | 44.5 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 6.1 m GBP
- Financial debt
- 61.8 m GBP
- Net debt
- 55.7 m GBP
- Equity
- 234.5 m GBP
- Total assets
- 417.1 m GBP
- Debt / equity
- 0.26x
- Current ratio
- 1.46x
- ROE
- 7.4%
- ROA
- 4.0%
- FCF margin
- 11.5%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Revenue | 455.5 m | 346.4 m | 344.3 m | 386.0 m | esef· 07 Apr 2026verified |
| Cost of revenue | 292.9 m | 245.7 m | 241.3 m | 264.5 m | esef· 07 Apr 2026verified |
| Gross profit | 162.6 m | 100.7 m | 103.0 m | 121.5 m | esef· 07 Apr 2026verified |
| Operating income | 75.0 m | 24.1 m | 33.9 m | 29.3 m | esef· 07 Apr 2026verified |
| Depreciation & amortisation | 16.5 m | 20.0 m | — | — | esef· 16 Apr 2024verified |
| EBITDA | 91.5 m ≈ | 44.1 m ≈ | — | — | esef· 16 Apr 2024derived |
| Interest expense | 2.1 m | 7.0 m | 9.1 m | 6.0 m | esef· 07 Apr 2026verified |
| Pre-tax income | 72.9 m | 17.1 m | 24.8 m | 23.3 m | esef· 07 Apr 2026verified |
| Income tax | 14.1 m | 4.3 m | 7.3 m | 6.3 m | esef· 07 Apr 2026verified |
| Net income | 58.8 m | 12.8 m | 17.5 m | 17.0 m | esef· 07 Apr 2026verified |
| Diluted EPS | 0.27 | 0.06 | 0.08 | 0.08 | esef· 07 Apr 2026verified |
| Dividend per share | 0.15 | 0.12 | 0.03 | 0.04 | esef· 07 Apr 2026derived |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Cash | 34.3 m | 16.0 m | 15.2 m | 6.1 m | esef· 07 Apr 2026verified |
| Receivables | 44.3 m | 31.0 m | 39.0 m | 35.4 m | esef· 07 Apr 2026verified |
| Inventories | 43.0 m | 95.8 m | 82.0 m | 78.6 m | esef· 07 Apr 2026verified |
| Current assets | 122.2 m | 146.7 m | 143.7 m | 124.0 m | esef· 07 Apr 2026verified |
| Property, plant & equipment, net | 233.7 m | 249.7 m | 263.8 m | 262.8 m | esef· 07 Apr 2026verified |
| Total assets | 397.6 m | 444.7 m | 442.4 m | 417.1 m | esef· 07 Apr 2026verified |
| Accounts payable | 89.6 m | 66.3 m | 68.7 m | 69.8 m | esef· 07 Apr 2026verified |
| Short-term debt | 200.0 k | 400.0 k | 700.0 k | 200.0 k | esef· 07 Apr 2026verified |
| Long-term debt | 40.0 m | 108.8 m | 99.4 m | 61.6 m | esef· 07 Apr 2026verified |
| Current liabilities | 108.8 m | 93.9 m | 81.9 m | 85.1 m | esef· 07 Apr 2026verified |
| Total liabilities | 177.1 m | 236.9 m | 217.5 m | 182.6 m | esef· 07 Apr 2026verified |
| Equity | 220.5 m | 207.8 m | 224.9 m | 234.5 m | esef· 07 Apr 2026verified |
| Shares outstanding at year end | 216.2 m | 206.5 m | 210.8 m | 209.9 m | esef· 07 Apr 2026derived |
Cash flow · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Operating cash flow | 75.6 m | -20.0 m | 42.2 m | 59.0 m | esef· 07 Apr 2026verified |
| Capex | 42.1 m | 33.0 m | 25.4 m | 14.5 m | esef· 07 Apr 2026verified |
| Free cash flow | 33.5 m ≈ | -53.0 m ≈ | 16.8 m ≈ | 44.5 m ≈ | esef· 07 Apr 2026derived |
| Investing cash flow | -41.2 m | -33.8 m | -25.6 m | -14.5 m | esef· 07 Apr 2026verified |
| Financing cash flow | -41.6 m | 35.5 m | -17.4 m | -53.6 m | esef· 07 Apr 2026verified |
| Dividends paid | 24.2 m | 25.7 m | 6.3 m | 8.2 m | esef· 07 Apr 2026verified |
| Share repurchases | 40.3 m | 0 | — | — | esef· 16 Apr 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 43 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 351.3 m GBP
Key indicators
Coverage and freshness
Score by group
- Quality49
- Growth0
- Balance sheet53
- Returns60
- Valuation60
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Neutral profile · Score 43/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 7.1% | 25 (vs peers) | 13% |
| Net margin · Quality | 4.4% | 37 (vs peers) | 8% |
| FCF conversion · Quality | 261.8% | 100 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | -5.4% | 0 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | -33.2% | 0 (on a fixed band) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.9x | 52 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 1.5x | 55 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 20.9x | 28 (vs peers) | 13% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 12.7% | 100 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | 2.3% | 33 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | 18.4% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet53/100 · 2/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality49/100 · 3/3 factors with a value
- Returns60/100 · 2/2 factors with a value
- Valuation60/100 · 2/3 factors with a value
Memo
FORTERRA PLC (FORT.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 386.0 m GBP in 2025; YoY growth 12.1%; net margin 4.4%; ROE 7.4%.
The estimated value range is 0.90–1.39 GBP per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 1.15 GBP, the price of 1.67 GBP leaves a potential of -31.1% (value / price − 1) and a margin of safety of -45.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 43/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 261.8%
- FCF yield: 12.7%
- Payout ratio (FCF): 18.4%
What contradicts it
- ROIC: 7.1%
- Revenue CAGR 3Y: -5.4%
- EPS CAGR 3Y: -33.2%
- P/E (TTM): 20.9x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| FORT.LForterra PLC | 351.3 m | 20.9 | 7.4% | 4.4% | +12.1% | −10% / +9% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for FORT.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 0.91 Total return -44% · Per year -44% | 1.61 Total return -2% · Per year -2% | 2.44 Total return 48% · Per year 48% |
| 3 years | 0.72 Total return -52% · Per year -22% | 1.45 Total return -7% · Per year -2% | 2.44 Total return 54% · Per year 15% |
| 5 years | 0.57 Total return -59% · Per year -16% | 1.31 Total return -11% · Per year -2% | 2.44 Total return 59% · Per year 10% |
- Exit P/E± 0.36
- Net margin± 0.25
- Annual revenue growth± 0.23
- Annual dilution± 0.02
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Forterra plc makes bricks, concrete and masonry products, with a major share of its business in UK residential construction. The group is working through a period of weak housing demand, but its 2025 annual report points to a modest demand recovery and completed investment in new factories. Net debt before leases fell to 55.7 million GBP from 84.9 million GBP, indicating a stronger financial position 1.
SWOT
Strengths
- Solid liquidity position, with a committed credit facility extended to 2028 and headroom available within it 1.
- Ability to flex production up or down so output stays closely matched to sales, which has worked effectively in periods of weak demand 1.
- Improving safety indicators, with the lowest lost time incident rate recorded by the business reported for 2025 1.
Weaknesses
- High dependence on residential construction, which makes revenue sensitive to housing cycles 1.
- Difficulty aligning production with differing demand for product lines, which has produced high stocks at some factories and shortages at others 1.
- Slower-than-hoped progress on packaging reduction against the original target, showing difficulty implementing operational change 1.
Opportunities
- A recovery in housing demand could lift volumes, particularly if the UK housing shortage persists 1.
- Diversification into commercial and specification construction through the new Wilnecote factory could reduce reliance on residential 1.
- Demand for lower-carbon and prefabricated solutions could open new markets 1.
Threats
Risks
- Residential sector activityhigh
Most revenue comes from residential construction, so any fall in activity could affect profitability and long-term strategic plans 1.
- Government policymedium
Changes in housing policy and construction finance could affect demand for the company's products either positively or negatively 1.
- Inventory managementmedium
Excess stock can tie up capital and raise financing costs, while insufficient stock can lead to lost customers 1.
- Credit facility covenantsmedium
The facility carries leverage and interest cover restrictions, and a further fall in volumes could put them at risk of breach, although the board views this as highly unlikely 1.
- Climate and transition risklow
Extreme weather and changing emissions regulation could affect operations and competitiveness over the medium and long term 1.
Investment thesis
What would need to be true (bull case)
- If housing demand recovers, the flexible capacity and completed investments could let the company benefit quickly from higher volumes 1.
- Lower net debt and reduced capital spending could free cash for returns to shareholders, such as the proposed share buyback programme 1.
- Diversification into commercial construction and low-carbon solutions could reduce reliance on the residential cycle over the long term 1.
What would break the thesis
- Demand remains below 2022 levels, and the downside scenario assumes falls of up to 40% below that level, which could pressure results 1.
- A further fall in volumes could breach credit covenants, even though management considers this scenario unlikely 1.
- Progress on packaging reduction and decarbonisation is slower than expected, which could weigh on the credibility of the sustainability programme 1.
What to watch
- Sales volume trajectory against the base case, relative to 2022 levels2026
- Decision on the proposed 20 million GBP share buyback programme2026
- Net debt level and compliance with credit facility covenantsto 30 June 2027
- Progress of the Wilnecote factory redevelopment and diversification into commercial constructionnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Forterra is a British building materials producer specialising in bricks, concrete products and construction systems. According to the annual report for the year ended 31 December 2025, residential activity, both new build and repair, maintenance and improvement, generates the majority of group revenue 1. The company has about 1,500 employees across the UK and works with a supplier base of over 1,400 suppliers 1.
The group's strategy aims to be the supply chain partner of choice for its customers through excellent service, strengthened brands and the right products 1. Management also describes a decarbonisation programme targeting net zero by 2050, with 2030 targets in progress 1.
The financial structure relies on a committed revolving credit facility of 170 million GBP, extended to June 2028, of which 62 million GBP was drawn at year-end 2025 with 108 million GBP of headroom 1.
Segments
Bricks (extruded and soft mud)
Extruded bricks saw growing demand in 2025, while soft mud and London bricks were more muted, creating inventory challenges between different factories 1.
Commercial and specification construction
The redevelopment of the Wilnecote brick factory, which will supply the commercial and specification market, could diversify the group away from residential construction 1.
Cladding and high-rise products
The Omnia brick slip system, launched in 2025, targets non-residential and high-rise projects, with KIWA certification and reduced production waste 1.
Market context
Demand for Forterra's products is closely tied to residential and commercial construction activity in the UK. The report notes a modest improvement in demand in 2025, but the housing market remains in a cyclical downturn, affected by global economic uncertainty, government policy and low consumer confidence 1. The management base case assumes sales volumes between 12% and 25% below 2022 levels 1.
Management believes the bottom of the cycle may have passed, and if demand firms, the group's flexible production could be an advantage. The pace of recovery remains uncertain and depends on macroeconomic conditions and geopolitical developments 1.
Trends
- Slow recovery in housebuildingtailwind
Demand rose modestly in 2025 and borrowing costs have been slowly falling, which could support new build construction if the trend continues 1.
- Absence of government demand supportheadwind
For the first time in a long while there is no government scheme stimulating demand for new housing, with current policy focused on supply and planning reform 1.
- Decarbonisation and energy standardsmixed
Stricter standards such as Part L and the Future Homes Standard raise requirements for low-carbon products, which could create opportunities for innovative products but also add costs 1.
- Shortage of skilled labourheadwind
Skilled labour shortages make it harder for builders to maintain efficiency and encourage closer collaboration with developers, especially for prefabricated solutions 1.
Competitive position
The report describes the markets for Forterra's products as characterised by a small number of large businesses operating nationally with large market shares 1. The supplied sources do not name these competitors, so no US-listed tickers can be given.
Competitive pressure shows up as the risk of losing market share if key customer relationships deteriorate, and as the availability of lower-carbon materials with similar performance that could compete with traditional products 1.
- Large national brick and concrete producers (unnamed in source)
The report refers only to markets dominated by a few large national players, without naming them.
- Producers of alternative materials with similar performance
The report warns that lower-carbon materials, if they become available, could shift consumer preferences.
- Suppliers of prefabricated and off-site construction systems
The company notes that prefabricated construction methods could change demand for its products.
- Suppliers of insulation and cladding systems
The source mentions competition in insulation and cladding products without further detail.
News & filings
In the press
- Forterra partners with Hypercraft on autonomous vehicle for high-risk missionsDefense News (US, EN) · 14 Oct 2026 · EN
- One user interface, multiple autonomous systems: Forterra debuts OASIS-OneLink technologyDefense News (US, EN) · 12 Oct 2026 · EN
Annual reports (ESEF)
- Annual report 202507 Apr 2026
- Annual report 202316 Apr 2024
- Annual report 202316 Apr 2024
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Forterra plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.