Breedon's H1 revenue rises 5% as Ireland, US offset Great Britain weakness
Breedon's H1 revenue rises 5% as Ireland, US offset Great Britain weakness
Overview
UK construction materials supplier's H1 revenue rose 5% as Ireland and US growth offset Great Britain weakness
Adjusted EPS for H1 fell 16% yr/yr due to lower operating profit and higher interest costs
Company raised interim dividend 5% and invested £110 mln in US and Ireland acquisitions
Outlook
Breedon maintains 2026 guidance, expects performance in line with market expectations
Company expects continued positive momentum in Ireland and US, with growth supported by acquisitions
Breedon sees demand in Great Britain declining for fifth consecutive yr, with infrastructure providing some support
Result Drivers
IRELAND & US GROWTH - Revenue gains in Ireland and the US, supported by higher construction activity, positive pricing, and acquisitions, offset weak GB performance
GB MARKET WEAKNESS - Subdued residential construction in Great Britain led to flat revenue and a 3% decline in underlying EBITDA, with ready-mixed concrete volumes down 8%
COST RECOVERY & HEDGING - Targeted price rises, surcharges, and layered hedging helped recover increased input costs and provided cost certainty
Company press release: ID:nRSc2511Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Beat | GBP 857.90 mln | GBP 847 mln (1 Analyst) |
H1 Basic EPS |
| GBP 0.07 |
|
H1 Pretax Profit |
| GBP 26.70 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction materials peer group is "buy"
Wall Street's median 12-month price target for Breedon Group PLC is GBp387.50, about 19% above its July 28 closing price of GBp325.60
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)