• Non-cash impairment charge of AUD 55 million (pre-tax AUD 74 million) for Brickworks North America
• Declining market conditions, strong competition, and reduced plant efficiency lead to significant EBITDA margin decline
• 1H25 earnings update: Property EBITDA higher, Building Products Australia in line, Building Products North America significantly lower

Brickworks Limited has undertaken a review of the carrying value of its assets as at 31 January 2025 and expects to recognize a post-tax non-cash impairment charge of approximately AUD 55 million (pre-tax AUD 74 million) to its Brickworks North America operations in its 1H25 results. The key drivers of the non-cash impairment include declining market conditions in North America, with a 13% reduction in revenue compared to the prior corresponding period, strong competition in the retail segment resulting in a loss of market share, and reduced plant efficiency and higher unit manufacturing costs due to plant shutdowns to control inventory levels. The subdued building activity and scaled-back production will also delay the realization of benefits expected from recent plant rationalisation and upgrades. Additionally, uncertainty around the timing of market recovery, labour shortages, elevated material costs, interest rate uncertainty, and geopolitical volatility have moderated the short to medium-term outlook for sales activity. In terms of 1H25 divisional earnings, the company expects Property EBITDA to be higher than the prior corresponding period, Building Products Australia EBITDA to be broadly in line, and Building Products North America EBITDA to be significantly lower due to the impacts outlined above, as well as unusually extreme winter weather conditions in the company's key regions during the latter part of the half.