Breedon Group reports 5% revenue growth, US and Ireland offset UK weakness

Breedon Group Plc (LON:BREE) has announced its interim results for 2026.

Positive momentum in Ireland and the United States offsets market challenges in Great Britain; further strategic progress; outlook in line with market expectation

Financial performance benefits from geographic diversification: Revenue growth on both a reported and like-for-like basis; Underlying EBITDA broadly flat with a strong start to the year in the US (+14% LFL) offsetting further declines in GB residential markets.

Strategic progress with £110m of capital deployed into bolt-on acquisitions in the US and Ireland: Falling Springs demonstrates ability to source strategically compelling assets at attractive valuations in the US, while Booth provides a source of aggregates for a key growth market in Dublin.

Guidance maintained; expect 2026 performance in line with market expectations with positive momentum in Ireland and the US. In GB, although infrastructure provides some support, market indicators suggest demand will decline for a fifth consecutive year.

‘Back British Cement’ campaign launched advocating for a level playing field for the domestic cement industry, including effective carbon border measures, to support UK construction, economic growth and national resilience.

Covenant Leverage reduced to 2.1x compared with H1 2025 following acquisitions in the period and at peak of in-year working capital cycle. Strong cash generation supports further deleveraging in second half.

Dividend increased by 5% reflecting confidence in resilient cash generation and long-term prospects.

Rob Wood, CEO, said:

“Thanks to the hard work and dedication of our 4,900 colleagues, we have delivered a really solid financial performance in the first half and I am pleased with the progress we have made on our strategic objectives.

“We have continued to deliver self-help through our operational excellence programmes, and the bolt-on acquisitions, which we have completed in the US and Ireland, demonstrate the ability of our teams to source and execute strategically compelling, earnings-accretive transactions at attractive valuations.

“We are building an increasingly diversified business in the structurally attractive Irish and US markets, where we see supportive conditions for both volumes and pricing, while still retaining significant upside in GB once volumes recover.

“Across the balance of the year, we expect continued positive momentum in Ireland and the US, with organic growth supported by contributions from the acquisitions completed to date. In GB, although infrastructure activity provides some near-term support and structural demand drivers underpin a more positive medium-term outlook, volumes are expected to decline for a fifth consecutive year during 2026.

“With a strong team, significant mineral reserves and well-invested production capacity, we are well positioned to deliver long-term growth and returns across all three of our platforms.”

Interim Results 2026 performance summary

          Notes:

–           Divisional revenue and Underlying EBITDA exclude eliminations, head office costs and the share of associate and joint ventures.

–           Percentage changes in respect of volumes are calculated based on non-rounded data.

–           Comparatives restated to reflect move to country-based management structure which took effect from 1 July 2025.

Revenue growth and stable earnings in mixed market conditions

Revenue increased by 5% to £858m reflecting like-for-like growth alongside contributions from M&A in Ireland and the United States, and a creditable performance given trading conditions in Great Britain. Aggregates and asphalt volumes each saw encouraging like-for-like levels of growth; however ready-mixed concrete in particular was subdued.

Underlying EBITDA was broadly flat, although slightly improved on a like-for-like basis.

· Great Britain revenues reflected broadly flat volumes and pricing, resulting in a 3% decline in Underlying EBITDA compared to the first half of 2025. Trends varied across products according to their end-market exposure. Ready-mixed concrete volumes declined a further 8% compared to the first half of 2025, which put pressure on both pricing and margins. Cement earnings were stable, and there were signs of market stabilisation for aggregates and asphalt, which also benefitted from major infrastructure project wins and delivered volume and price growth.

· Ireland reported revenue growth of 12%, supported by increased levels of construction activity in RoI, including some major projects delayed from 2025. Pricing trends were positive across all product categories. Underlying EBITDA grew by 3% with margins compressed in the short-term by an unscheduled shutdown of the cement mill at Kinnegad during May. The mill is now back operating at full capacity and is not expected to impact performance during the second half of the year.

· United States saw a 20% increase in revenues as the business delivered a strong trading performance, advanced pricing and recorded contributions from recent acquisitions. On a like-for-like basis, revenues grew 13% and Underlying EBITDA 14% supported by more stable weather patterns in the Midwest than in the first half of 2025. Reported Underlying EBITDA growth of 6% included the two loss-making winter months from Lionmark partially offset by the initial contribution from Falling Springs.

Across the Group, the impact of the Middle East conflict has been minimal to date, with our layered hedging programme providing short-term cost certainty and a mix of contractual escalators, surcharges and targeted price rises helping to recover increased cost.

Outlook

The Board continues to expect performance in line with current market expectations⁸ for 2026

· Great Britain: Construction market indicators remain subdued, suggesting demand will decline for a fifth consecutive year in 2026 with continued weakness in residential new build. There are some signs of stabilisation in infrastructure, where planned spending is expected to provide support for our largest end-market, but the timing and pace of an overall construction recovery is unclear. In the second half, we will continue to focus on operational excellence and self-help measures while ensuring that the business is positioned to take full advantage of opportunities when volumes recover.

· Ireland: The outlook is positive. The National Development Plan has allocated the necessary funding for essential infrastructure investment over the coming decade, funds are starting to be deployed and overall levels of construction activity are increasing. We expect a strong second half with both revenue and earnings growth.

· United States: We enter the second half with healthy backlogs and end-markets exhibiting supportive conditions for volume and price progression. While residential demand is expected to remain softer as expectations for interest rate cuts have been pushed back, data centre demand is increasing in the Midwest and the BUILD America 250 Act demonstrates further evidence of long-term government commitment to invest in the infrastructure markets we serve.

The second half of the year will benefit from contributions from the transactions completed earlier in the year, most notably Falling Springs. We maintain healthy pipelines and a willingness to engage in M&A to advance our strategic objectives in each of our platforms, with the order of our capital allocation priorities remaining the US, Ireland and GB.

Results presentation

Breedon will host a results presentation for analysts and investors at 08:30am today at Deutsche Bank, 21 Moorfields Highwalk, London, EC2Y 9DB or online via www.breedongroup.com/investors. The presentation will be followed by Q&A, where it will be possible to participate through the following dial-in details: