Breedon Group (BREE) H2 2025 earnings summary

Executive summary

• Revenue and EBITDA grew year-over-year despite challenging markets, driven by U.S. acquisitions and operational excellence initiatives delivering over GBP 20 million in cost savings.

• Integration of Lionmark in the U.S. expanded capabilities, creating a more balanced, vertically integrated business now generating nearly 20% of group revenue.

• Maintained a strong balance sheet and achieved record post-COVID free cash flow of GBP 133 million.

• Increased dividend by 3% to GBP 0.15, reflecting confidence in future performance.

• Advanced sustainability strategy with 19% emissions reduction and GBP 134.5 million social value generated.

Financial highlights

• Revenue rose 9% year-over-year to GBP 1,714 million; underlying EBITDA up 3% to GBP 278.8 million.

• Free cash flow reached GBP 133.2 million, a 17% increase, with leverage reduced to 1.8x.

• Net debt closed at GBP 527.3 million, well within covenant thresholds.

• Underlying EPS fell by 8% to 31.8p due to higher depreciation and interest charges.

• Dividend per share increased to 15.0p.

Outlook and guidance

• Expect similar revenue and EBITDA first-half/second-half split in 2026 as in 2025, with U.S. business more weighted to the second half.

• Bolt-on M&A expected in 2026, with flexibility to pursue value-enhancing deals.

• Absent M&A, further deleveraging anticipated in 2026.

• Positive outlook for Ireland and the U.S., while the UK market shows early signs of stabilisation.

• 2026 guidance: depreciation c.GBP 120 million, net interest c.GBP 35 million, capex GBP 120–130 million, tax rate 22–23%.