Breedon Group PLC

Latest Results (04.12.2025):

Breedon Group PLC — Interim results for H1 2025 (six months ended 30 June 2025, covering Q1 and Q2 2025): revenue rose to £815.9m (+7%) largely driven by the March acquisition of Lionmark, while underlying EBITDA fell to £115.0m (‑3% year‑on‑year) and underlying EPS declined to 11.2p. Statutory profit before tax was £34.9m (underlying £48.9m), net debt increased to £648.1m and covenant leverage rose to 2.2x. The board increased the interim dividend to 4.75p and now expects full‑year EBITDA to be at the low end of market expectations.

Financial headline

Revenue £815.9m (+7% reported; LFL -3%), Underlying EBITDA £115.0m (-3% YoY), Underlying EBITDA margin 14.1% (down 130bps reported; LFL down 30bps). Statutory profit before tax £34.9m; underlying PBT £48.9m. Adjusted underlying basic EPS 11.2p (H1 2024: 13.9p); statutory basic EPS 8.0p (H1 2024: 10.0p).

Balance sheet & cash

Net debt £648.1m (H1 2024: £472.3m) after Lionmark acquisition; covenant leverage 2.2x (H1 2024: 1.6x) and expected to fall as seasonal working capital unwinds. Free cash flow outflow of £25.0m in H1; working capital swing larger due to Lionmark. RCF extended post‑period to July 2029; USPP issuance raised to £329m (additional £79m during H1).

Dividend

Interim dividend increased to 4.75p per share (H1 2024: 4.50p), representing a c.42% payout ratio and an expected cash cost of c.£17m for the interim payment; full‑year cash dividend cost guidance ~£52m.

Acquisition: Lionmark

March 2025 acquisition of Lionmark (Missouri) broadened US exposure into asphalt and surfacing, rebalancing US towards infrastructure. Integration is progressing to plan, with $3m of synergies targeted by the third full year of ownership; Lionmark contributed four months of trading in H1.

Regional performance — Great Britain

GB revenue £480.7m (reported -2%; LFL -4%). Underlying EBITDA £56.4m (LFL -9%) and margin contraction driven by operating leverage and weaker volumes as demand remained weak; management focused on self‑help, efficiency and local wins.

Regional performance — Ireland

Ireland revenue £103.0m (‑7%); underlying EBITDA maintained at £17.5m and margin improved to 17.0% (+130bps) due to disciplined tendering and cost control despite some major project deferrals.

Regional performance — United States

US revenue £127.2m (reported +140% reflecting Lionmark; LFL +8% in constant currency). Underlying EBITDA £13.0m (LFL +2%); H1 affected by unusually severe weather causing activity disruption, but backlog and pricing remain supportive and further H2 margin improvement is expected if weather normalises.

Cement & sustainability

Cement revenue £150.2m (‑4%); underlying EBITDA £36.5m (‑5%). Production reliability maintained; lower‑carbon CEM II volumes rose to 46% and alternative fuel substitution increased to 53%. Signed Peak Cluster shareholder agreement and progressing FEED work for carbon capture projects (plan to invest >£20m over next three years ahead of FID).

Guidance & outlook

Company now expects FY 2025 underlying EBITDA at the low end of the current market range (company‑compiled consensus FY EBITDA c.£302.8m; range £291.4m–£311.5m). Technical guidance includes depreciation ~£115m, net interest £32–35m, tax rate 22–23%, total capex £125–135m, and full‑year working capital outflow £20–30m. Management highlights structural demand drivers in housebuilding and infrastructure and expects US to deliver further growth in H2.

Key risks & priorities

H1 exposed vulnerability to weak GB end‑markets, project delays in Ireland and weather disruption in the US. Management priorities: complete Lionmark integration, restore leverage as seasonal working capital unwinds, continue self‑help and cost discipline, and pursue M&A and decarbonisation initiatives.