REG - Breedon Group PLC - Trading Update

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RNS Number : 2571I  Breedon Group PLC  20 November 2025

20 November 2025

BREEDON GROUP PLC

 

Trading Update to 31 October 2025

 

Resilient performance despite sustained market challenges

 

Breedon Group plc ("Breedon" or the "Group"), a leading vertically-integrated
construction materials group in Great Britain, Ireland and the United States,
provides the following trading update for the ten months to 31 October 2025.

Trading performance

When compared to the same period in 2024, revenue for the first ten months
increased 9% and for the four months to 31 October increased 12% assisted by
contributions from acquisitions. On a like-for-like(1) basis revenue decreased
3% in the first ten months and decreased 3% for the four months to 31 October,
consistent with the trends reported to the half year.

Market challenges have persisted to date in 2025.  Subdued demand in GB and
US residential markets have been compounded by key infrastructure project
delays in GB and Ireland.  Against this backdrop the Group has continued to
focus on the integration of Lionmark and self-help, together with operational
and commercial excellence initiatives.

Trading in GB has seen subdued demand in the year to date and near term
construction activity expectations have reduced(2).  While our enquiries
remain elevated they have not yet converted into orders.

Trading in Ireland has been impacted by the deferral of some major
infrastructure projects however the market in the Republic of Ireland has an
encouraging outlook following the publication of the National Development Plan
earlier this year(2).

In the US, while the business has made up some of the work delayed by weather
in the first half, market growth expectations have moderated as the year has
progressed(2).  Our US backlogs however are healthy and infrastructure
markets in the Midwest remain encouraging with significant projects such as
the I-70 progressing.  New build residential continues to be subdued due to
affordability constraints.

Despite market conditions we expect to deliver a further year of profitable
growth with Underlying EBITDA for the year of between £275 to £280 million
and a reduction in Covenant Leverage(3) at the year end.

Outlook

In the medium term we are encouraged by the UK Government's commitment to
infrastructure and housebuilding which will lead to increased demand for
construction materials as market activity improves. However, at present there
is considerable economic and fiscal uncertainty in the UK.

The National Development Plan in the Republic of Ireland represents a
significant increase in potential infrastructure investment which we will be
well placed to benefit from over the next few years.

In the US, there remains considerable opportunity to build out our business
with  upside from residential when activity returns. In the near term, while
non-residential and infrastructure markets remain resilient, market growth
expectations have moderated.

Rob Wood, Chief Executive Officer, commented:

"Breedon continues to deliver resilient performance despite sustained market
challenges. Our focus on operational and commercial excellence and strategic
execution has continued to deliver profitable growth.  We remain confident in
the Group's prospects with our key end-markets across each of our geographies
standing to benefit from long-term structural growth drivers.

"While there is still uncertainty about the timing of a market recovery,
particularly in the UK, we have an excellent team, three leading platforms and
a well invested estate.  We remain well placed to take advantage of any
improvement in construction market activity."

 

Trading update conference call

Breedon will host a conference call at 08:00am for analysts and institutional
investors, with a facility for Q&A. For details, please contact
breedon@mhpgroup.com (mailto:breedon@mhpgroup.com) .

 

 

 

 

 

Notes:

1.     Like-for-like reflects reported values adjusted for the impact of
acquisitions, disposals and material currency fluctuations. Currency
fluctuations are calculated on a constant currency basis by applying the
average exchange rate for the prior period to the current year local currency
amount.

2.     Market data forecast references:

a.     UK: CPA Autumn 2025, MPA September 2025, S&P Global UK
Construction PMI October.

b.     RoI: AIB Ireland Construction PMI October, 99(th) Euroconstruct.

c.     US: FMI North American Engineering and Construction outlook Q4
2025.

3.     Covenant Leverage reported at the Half Year was 2.2x.  Covenant
Leverage is defined as the ratio of Underlying EBITDA to Net Debt, with both
Underlying EBITDA and Net Debt amended to reflect the material items which are
adjusted by the Group and its lenders in determining leverage for the purpose
of assessing covenant compliance. The material adjusting items being the
impact of IFRS 16 and a pro-forma adjustment to include pre-acquisition EBITDA
from businesses owned for less than twelve months.

4.

 Exchange rates      10-month 2025        10-month 2024        FY 2024
                     Period-end  Average  Period-end  Average  Period-end  Average
 Sterling/Euro       1.14        1.17     1.20        1.18     1.21        1.18
 Sterling/US dollar  1.32        1.32     1.30        1.28     1.26        1.29

 

 

 

 

 

 

 

5.     Company compiled consensus: FY 2025 EBITDA £286.9m, range £278.9m
to £292.0m.

6.     Information for investors, including analyst consensus estimates,
can be found on the Group's website at www.breedongroup.com/investors
(https://protect.checkpoint.com/v2/r06/___http:/www.breedongroup.com/nsAjxytwx___.ZXV3MjpuZXh0MTU6YzpvOmRhYmQzMTMyYzMzYzZmN2M0YTA2NmEwNTcyZjY5OTBmOjc6ZjUyYzowMDUyMTI4MjQ4MzU0ZDM3ZjVjNGIxMjE1NjY0YmUzODIxYjZmNDQxZmU3NWY3MzBlNDdjOTU3Y2U2ZjExOTU5OnA6RjpU)
.

 

 

 

 

 ENQUIRIES
 Breedon Group plc                                +44 (0) 1332 694010
 Rob Wood, Chief Executive Officer

 James Brotherton, Chief Financial Officer
 Louise Turner-Smith, Head of Investor Relations  +44 (0) 7860 911909
 MHP (Public relations adviser)                   +44 (0) 7831 406117
 Reg Hoare, Rachel Farrington, Charles Hirst      breedon@mhpgroup.com

 

 

 About Breedon Group plc

Breedon Group plc, a leading vertically-integrated construction materials
group in Great Britain, Ireland and the United States delivers essential
products to the construction sector. Breedon holds c.1.6bn tonnes of mineral
reserves and resources with long reserve life, supplying value-added products
and services, including specialty materials, surfacing and highway maintenance
operations, to a broad range of customers through its extensive local network
of quarries, ready-mixed concrete and asphalt plants.

 

The Group's two well-invested cement plants are actively engaged in a number
of carbon reduction practices, which include utilising alternative raw
materials and lower carbon fuels. Breedon's 4,900 colleagues embody our
commitment to 'Make a Material Difference' as the Group continues to execute
its strategy to create sustainable value for all stakeholders, delivering
growth through organic improvement and acquisition in the heavyside
construction materials market. Breedon shares (BREE) are traded on the Main
Market of the London Stock Exchange and are a constituent of the FTSE 250
index.

 

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