Breedon Group (BREE) H1 2026 earnings summary

Executive summary

• Revenue grew 5% year-over-year to £857.9m, driven by strong performances in Ireland (+12%) and the US (+20%), offsetting flat results in Great Britain.

• Underlying EBITDA was broadly flat at £115.5m, with margin at 13.5%, reflecting market challenges in GB and margin compression in Ireland.

• Strategic acquisitions in the US and Ireland totaled £110m, expanding mineral reserves and market reach.

• Interim dividend per share increased by 5% to 5.00p, reflecting confidence in cash generation and long-term prospects.

• Strategic progress included operational excellence initiatives and strengthened talent pipeline.

Financial highlights

• H1 2026 revenue rose 5% year-over-year to £857.9m; underlying EBITDA margin at 13.5%.

• Statutory profit before tax fell 16% year-over-year to £26.7m, impacted by higher depreciation, amortisation, and interest costs.

• Adjusted underlying basic EPS declined to 9.4p from 11.2p; statutory basic EPS dropped to 7.4p from 8.0p.

• Free cash outflow improved to £14.6m (H1 2025: £25.0m outflow), reflecting seasonal working capital build.

• Net debt increased to £690.5m, with covenant leverage at 2.1x.

Outlook and guidance

• 2026 performance expected in line with market expectations, with positive momentum in Ireland and the US.

• GB demand forecast to decline for a fifth consecutive year; recovery timing remains unclear.

• Full-year revenue split expected at 48%-52% (H1-H2), with profitability more weighted to H2.

• CapEx guidance raised to £125–135m, mainly due to acquisitions.

• Full-year technical guidance: depreciation £125–130m, net interest expense ~£35m, tax rate 22–23%.