Breedon Group PLC

Latest Results (25.09.2026):

Breedon Group PLC — Interim results for the first half of 2026 (H1 2026, six months to 30 June 2026): revenue grew 5% to £857.9m (3% like‑for‑like) while Underlying EBITDA was broadly flat at £115.5m (+1% LFL). Strong trading in Ireland and the United States offset continued softness in Great Britain. The Group deployed c.£110m into bolt‑on acquisitions (notably Falling Springs and Booth), increased the interim dividend by 5% to 5.00p, and maintained 2026 guidance in line with market expectations. Net debt was £690.5m and covenant leverage was 2.1x at the half‑year.

Key financials

H1 2026 revenue £857.9m (+5% YoY; +3% LFL); Underlying EBITDA £115.5m (flat YoY; +1% LFL). Underlying EBITDA margin 13.5% (down 0.6ppt). Profit before tax £26.7m (statutory), adjusted Underlying basic EPS 9.4p (down 16% YoY); statutory basic EPS 7.4p. Non‑underlying items before tax £14.6m.

Regional performance

Great Britain: revenue flat (£556.3m) with Underlying EBITDA down ~3% as residential weakness hit ready‑mixed concrete. Ireland: revenue +12% and Underlying EBITDA +3% (short‑term margin hit from an unscheduled Kinnegad mill shutdown now resolved). United States: revenue +20% (13% LFL) and Underlying EBITDA +6% (14% LFL), helped by favourable weather, pricing and recent acquisitions.

Volumes and product trends

Aggregates volumes +8% to 15.0m tonnes; asphalt volumes +6%; ready‑mixed concrete activity subdued (volumes down c.3%); cement volumes slightly down. Product performance varied by end‑market exposure, with infrastructure supporting aggregates and asphalt in GB while residential remained weak.

Cash flow, debt and dividend

Free cash flow was an outflow of £14.6m (improved vs H1 2025). Acquisitions cash outflow £106.9m contributed to an increase in Net Debt to £690.5m (+7% YoY). Covenant leverage improved slightly to 2.1x. Interim dividend up 5% to 5.00p (payout ratio ~53%; cash cost of interim dividend £17.4m).

Acquisitions & strategic progress

c.£110m deployed into US and Irish bolt‑ons: Falling Springs (~£90m EV) adds significant limestone reserves near St Louis; Booth strengthens sand & gravel supply into Dublin. Group reiterates priority capital allocation order: US, Ireland, then GB, and remains active on M&A.

Outlook & guidance

Board expects 2026 performance in line with market expectations (company‑compiled FY Underlying EBITDA consensus ~£280m). Management sees continued positive momentum in Ireland and the US; GB expected to see construction demand decline for a fifth consecutive year, with some infrastructure support. Full‑year technical guidance issued (e.g., capex £125–135m, depreciation £125–130m, net interest ≈£35m, group tax rate ~22–23%).

Costs, hedging and risks

Group hedges energy and carbon exposures in GB/Ireland with layered forward contracts; bitumen and other fuels partly hedged. Impact from the Middle East conflict has been minimal to date. Non‑underlying and decarbonisation costs (including Peak Cluster investment) remain highlighted risks; H1 cement decarbonisation costs £2.3m and amortisation of acquired intangibles £10.9m.