Davy Morning Equity Briefing
May 21, 2026
Ibstock plc
Still hopeful on full year expectations
It has been a very difficult time for Ibstock as earnings estimates have fallen very sharply over the past year. However, the group’s trading update is somewhat encouraging in the context of modest expectations. In this regard, Ibstock has suggested it can still deliver a full year result broadly consistent with current market expectations. This might provide some relief for a share price trading close to its lowest level since the group’s IPO over a decade ago.
Hill & Smith
AGM statement
Hill & Smith has published a trading statement for the first four months of the year ahead of its AGM later today. Organic revenue growth in the US is slightly ahead of expectations, leading to a 1% upgrade in guidance to EBITA in FY2026. This is a positive start to the year and the balance sheet remains in a strong position.
easyJet
Winter losses grow; H2 impacted by late booking curve
EasyJet has reported a H1 FY26 headline loss before tax of £552m, in line with consensus and guidance given in April’s trading update. On a capacity increase of 8% (ASKs), RASK was up 1%, while total CASK was up 5% (including £25m additional fuel costs). Forward bookings have been impacted by the Middle East conflict with booked RASK to date -4% and forward bookings are -1ppt for Q3 and -3ppts for Q4. Ex-fuel CASK is expected to increase by low-single digits, while fuel CASK (72% hedged at $726pmt) is highly dependent on fuel price volatility which remains elevated. Given these headwinds, we expect FY26 PBT consensus to move further downwards from the current company compiled consensus level of £142m (Davy: £124.8m).
