Breedon Group (BREE) H1 2025 earnings summary

Executive summary

• Delivered resilient performance despite challenging market conditions, supported by disciplined cost management, strategic focus, and the Lionmark acquisition, which diversified US end-market exposure.

• Interim dividend increased 6% to 4.75p per share, reflecting confidence in future prospects.

• Strategic progress made with three geographic platforms, organizational restructuring, and enhanced sustainability and finance functions.

• Integration of Lionmark in the US is progressing as planned, supporting future growth.

• Maintained focus on operational excellence, sustainability, and financial discipline.

Financial highlights

• Revenue rose 7% year-over-year to £815.9m, mainly due to Lionmark acquisition; like-for-like revenue declined 3%.

• Underlying EBITDA: £115.0m (down 3% year-over-year); margin 14.1% (down 130bps).

• Profit before tax: £34.9m (down 25% year-over-year); adjusted EPS 11.2p (down from 13.9p).

• Free cash outflow of £25.0m before major capital projects; net debt increased to £648.1m, mainly due to Lionmark acquisition.

• Covenant leverage at 2.2x, expected to reduce below 2x by year-end.

Outlook and guidance

• Full-year profitability expected at the bottom end of current EBITDA expectations due to macroeconomic headwinds.

• Revenue split guidance: group 45:55 (H1:H2), U.S. 35:65; profitability split: group 40:60, U.S. 25:75.

• CapEx guidance for the year: £125–135 million; working capital outflow expected at £20–30 million.

• Net debt forecasted at ~£590 million by year-end, with leverage just below 2x.

• Structural growth drivers remain in infrastructure and housing across all platforms.