Michelmersh expects profit decline after Q4 construction market slowdown

(Sharecast News) - Brick manufacturer Michelmersh has pointed to a "notable slowdown" in the construction market and activity levels in the final quarter of 2025, as it guided to a slight drop in profits this year. As has been widely reported, a challenging macro outlook and uncertainty ahead of last week's Budget have hit both consumer sentiment and investment decision making across the sector, the company said in a trading update on Tuesday.

However, trading and profitability have still been ahead of the first half, while the company continues to see positive order intake levels.

"This reflects robust customer demand for our diverse product offering, which has been supported by our collaborative approach to pricing, albeit with more uncertain timing of brick despatches," the firm said.

Nevertheless, Michelmersh said that revenues and adjusted EBITDA are now expected to be £69m and £12.5m for 2025, respectively. This compares with earlier guidance of steady results from 2024, when revenues were £70m and adjusted EBITDA was £14.0m.

The stock was down 1.2% at 85p by 0916 GMT.