Breedon Group PLC

Latest Results (12.10.2025):

Breedon Group PLC reported resilient interim results for the six months ended 30 June 2025, demonstrating steady revenue growth driven by the acquisition of Lionmark despite challenging market conditions. The Group maintained its commercial discipline, expanded its US presence, and increased its interim dividend, reflecting confidence in future prospects.

Revenue Growth

Revenue increased by 7% to £815.9 million in H1 2025 compared to £764.6 million in H1 2024, primarily driven by the acquisition of Lionmark. Like-for-like revenue, however, decreased by 3% due to challenging markets in Great Britain, project delays in Ireland, and adverse weather conditions in the US.

EBITDA and Profitability

Underlying EBITDA saw a marginal increase of 1% to £110.0 million, while profit before tax declined by 25% to £34.9 million. The EBITDA margin decreased by 80 basis points to 13.5%, reflecting operating leverage challenges in Great Britain and other regions.

Dividend and Financial Position

The interim dividend was increased by 6% to 4.75p per share, underscoring confidence in the Group's future. Net debt rose by 37% to £648.1 million following the Lionmark acquisition, with covenant leverage increasing to 2.2x. The Group maintains a strong and flexible balance sheet with financing secured for future initiatives.

Strategic Acquisitions and Market Expansion

The acquisition of Lionmark has enhanced the Group's US market diversification, resulting in a balanced exposure with greater infrastructure presence. This strategic move is expected to support long-term growth and margin expansion in the second half of the year.

Operational Performance

Operating margins improved in Ireland by 130 basis points due to disciplined tendering and cost control, while the US integration of Lionmark progressed smoothly despite extreme weather challenges. Cement volumes slightly decreased in Great Britain, but ongoing decarbonization initiatives remain on track.