Breedon Group (BREE) Trading Update summary

Trading performance and financials

• Revenue rose 7% year-on-year for the first ten months and 11% for the four months to 31 October 2024, despite a 4% like-for-like decrease over ten months.

• Operational excellence and robust pricing offset challenging market conditions, especially in Great Britain.

• Strong free cash flow generation and ongoing reduction in covenant leverage provide financial flexibility for future growth investments.

Business operations and strategic initiatives

• Integration of BMC is progressing well, with performance ahead of plan and a complementary acquisition in Western Illinois completed.

• Cement business completed major maintenance projects on time and within budget; Kinnegad plant maintained over 80% alternative fuel substitution.

• Continued investment in assets is optimizing operational performance and supporting growth.

Market outlook and guidance

• Full year 2024 underlying EBIT is expected to be in line with market consensus, with 2024 likely representing the floor in construction materials volumes.

• Healthy enquiry and tendering levels across all geographies, with expectations of a housing-led recovery and infrastructure investment, particularly in Great Britain.

• Focus remains on operational and commercial excellence, as well as pursuing M&A opportunities.