Breedon Group (BREE) H2 2025 earnings summary

Executive summary

• Revenue and EBITDA grew year-over-year, driven by U.S. acquisitions and operational excellence, despite challenging markets in all geographies.

• Achieved record post-COVID free cash flow of over GBP 133 million and increased dividend by 3% to GBP 0.15, reflecting strong cash generation and confidence in future prospects.

• Advanced strategic priorities, including the Lionmark acquisition expanding U.S. capabilities, mineral base replenishment, and sustainability progress.

• Implemented a new country-based management structure and delivered over GBP 20 million in operational savings.

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 conversion at 48%.

• Net debt closed just under GBP 530 million, with leverage at 1.8x, within target range.

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

• Dividend per share increased to 15.0p, up 3% year-over-year.

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 is the focus for 2026, especially in the U.S., with flexibility to pursue value-enhancing deals.

• Absent significant M&A, further deleveraging is expected in 2026.

• Decarbonization projects will incur single-digit millions in non-underlying costs in 2026.

• Market consensus for 2026: revenue GBP 1,775 million, underlying EBITDA GBP 283 million, EPS 31.5p.