By Stuart Condie

SYDNEY--Australian building-materials supplier Brickworks raised its interim dividend after swinging to a fiscal first-half profit despite weak U.S. demand hitting sales.

The ASX-listed company on Thursday reported a net profit for the six months through January of 21.3 million Australian dollars (US$13.5 million). That compared with a A$52.1 million loss in a year-earlier period hit by lower property valuations.

Revenue fell by 5.7% to A$516.3 million but Brickworks raised its dividend to A$0.25 a share from A$0.24 a year ago.

It reported underlying earnings per share of A$0.563, on a continuing operations basis. The average analyst forecast had been EPS of A$0.609 from revenue of A$509.5 million, according to data compiled by Visible Alpha.

The result included A$55 million in previously announced impairments against its North America building-products unit.

The impairment, the second against Brickworks' U.S. business in the last six months, came with a warning that the sales recovery anticipated by the company would come later than expected amid a raft of U.S. policy changes likely to push up construction costs.

Brickworks has temporarily shuttered some U.S. plants to keep a lid on inventory amid lower demand.

Revenue from North American building products fell 13% to A$194 million, driving an earnings before interest, tax, depreciation and amortization, or Ebitda, loss of A$3 million.

Chief Executive Mark Ellenor said he was cautious on the U.S. outlook despite economists' forecasts that building activity should recover in 2026 and grow strongly in 2027.

"While positive projections exist, factors such as labor shortages, material cost increases, elevated interest rates and market uncertainties necessitate cautious optimism," Ellenor said.

Australia building-products Ebitda fell 4% to A$50 million, while real-estate Ebitda swung into the black at A$38 million, helped by the absence of the negative revaluations that hit the year-earlier period.

Investments Ebitda fell 4% to A$73 million.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

March 19, 2025 18:15 ET (22:15 GMT)

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