Breedon Group PLC

Latest Results (03.03.2026):

Breedon Group PLC — interim results for H1 2025 (covering Q1 and Q2 2025): Revenue rose to £815.9m (up 7% YoY, driven by the March acquisition of Lionmark) while underlying EBITDA fell to £115.0m (down 3% YoY on a reported basis and down 5% on a like‑for‑like basis); underlying profitability and EPS were lower, net debt increased materially and the group now expects full‑year results to be at the low end of current market expectations.

Financial headline

Revenue: £815.9m (+7% YoY; like‑for‑like -3%). Underlying EBITDA: £115.0m (H1 2024: £118.1m). Statutory profit before tax: £34.9m (H1 2024: £46.5m); underlying PBT: £48.9m (H1 2024: £61.2m).

Profitability and EPS

Underlying EPS fell to 11.2p (H1 2024: 13.9p); statutory basic EPS was 8.0p (H1 2024: 10.0p). Like‑for‑like underlying EBITDA margin contracted c.30bps to 14.1% reflecting weaker volumes and operating leverage in GB.

Balance sheet and cash

Net debt increased to £648.1m (30 June 2025) from £472.3m a year earlier, driven primarily by the Lionmark acquisition; covenant leverage rose to 2.2x (H1 2024: 1.6x) but is expected to reduce in H2 as working capital unwinds. Free cash flow was an outflow of £25.0m (H1 2024: £6.0m adjusted outflow).

Dividend

Interim dividend increased to 4.75p per share (H1 2024: 4.50p), representing a c.42% payout ratio and a cash cost of ~£17m; payment date 7 Nov 2025.

Regional operating performance

Great Britain: revenues and volumes down (LFL revenue -4%) and margins squeezed by operating leverage. Ireland: revenue down but underlying EBITDA margin expanded +130bps to 17.0% through disciplined tendering. United States: reported revenue up materially (reflecting Lionmark) but like‑for‑like growth more modest; H1 hit by extreme weather, backlog remains healthy and integration of Lionmark progressing to deliver targeted synergies.

Lionmark acquisition and US strategy

Breedon acquired Lionmark in March 2025, rebalancing US end‑market exposure toward infrastructure; four months of Lionmark trading included in H1 and management expect $3m of synergies by the third full year of ownership. Additional USPP notes of £79m issued to help finance the deal; RCF extended to 2029.

Cash flow and guidance updates

Updated 2025 technical guidance: full‑year underlying EBITDA expected at the low end of market range (company consensus FY EBITDA ~£302.8m). Key lines: depreciation ~£115m, net interest £32–35m, capex £125–135m, full‑year working capital outflow £20–30m, cash interest ~£33m, cash cost of dividends ~£52m.

Strategic and sustainability progress

Progress on medium‑term strategy: replenished mineral planning (8m tonne extensions, 142m tonne pipeline), Peak Cluster shareholder agreement signed to advance carbon capture FEED work, CDP ratings upgraded (Climate A‑, Water B‑), and increased production of lower‑carbon CEM II cement (46% of volumes in H1).

Outlook and board view

Board notes a challenging first half and macro headwinds but cites strong local market positions, infrastructure tailwinds (UK and Ireland funding commitments) and US backlog. Management expects H2 to reduce leverage as working capital unwinds and anticipates the US business will see margin expansion if weather disruption does not recur.