Breedon’s 2025 scorecard: revenue up, margins resilient, cash outstanding
Breedon Group has reported a steady trading year against a tough backdrop and a standout year for cash. Revenue rose 9% to £1,713.8m, helped by the Lionmark acquisition in the US and a full year of BMC, while like-for-like revenue slipped 3% as UK volumes stayed weak and two big Irish projects were deferred. Underlying EBITDA edged up 3% to £278.8m with a 16.3% margin, down 80bps year-on-year.
Earnings eased as expected. Underlying profit before tax was £140.2m (-7%) and statutory profit before tax was £105.3m (-16%), with Basic EPS at 24.2p (-14%) and Adjusted Underlying Basic EPS at 31.8p (-8%). Notably, Underlying EBITDA landed slightly above the company-compiled consensus midpoint of £276.3m.
| Key metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | £1,713.8m | £1,576.3m | +9% (LFL -3%) |
| Underlying EBITDA | £278.8m | £269.9m | +3% (margin 16.3%, -80bps) |
| Underlying PBT | £140.2m | £150.8m | -7% |
| Statutory PBT | £105.3m | £125.4m | -16% |
| Basic EPS | 24.2p | 28.1p | -14% |
| Dividend per share | 15.0p | 14.5p | +3% (47% payout) |
| Free Cash Flow | £133.2m | £114.1m | +17% (48% conversion) |
| Net debt | £527.3m | £405.3m | +30% (1.8x leverage) |
| ROIC | 7.8% | 9.0% | -120bps |
Cash and balance sheet: record post-Covid FCF, leverage still in range
This is the headline. Free Cash Flow of £133.2m is a record since Covid and FCF conversion improved to 48% for a third straight year. Working capital discipline, lower capex and some self-help – including the sale of 480,000 surplus UK carbon allowances, adding £27.1m of cash and £6.0m of EBITDA – did the heavy lifting.
Net debt rose to £527.3m after the Lionmark deal, but covenant leverage sits at 1.8x, squarely inside the 1x-2x target and 0.4x lower than the mid-year peak. Interest cover remains robust at 12.3x. Liquidity at year-end exceeded £245m.
Operating performance by region: adapting to uneven demand
Great Britain – volumes soft but margins held
Revenue fell 3% to £1,116.1m and Underlying EBITDA slipped 4% to £185.2m, with margins essentially flat at 16.6% (-10bps). After four years of declining volumes, pricing tightened as 2025 progressed, particularly in ready-mixed concrete which is tied to housebuilding. Operational excellence and procurement savings offset cost headwinds, while the GB footprint was trimmed via closures and mothballing.
On the positive side, Hope cement reliability improved to 97%, fossil fuel replacement hit a record 39%, and CEM II lower-carbon cement made up 35% of GB cement sales.
Ireland – strategic progress, projects deferred
Revenue decreased 2% to £291.6m and Underlying EBITDA was £64.3m (-7%), with a still-healthy 22.1% margin. The Republic of Ireland market stayed robust but two major infrastructure jobs were deferred. Breedon made gains in Dublin – planning secured for a new RMX plant and an asphalt plant upgrade, and the Booth acquisition was announced (completed February 2026).
Kinnegad delivered 95% reliability, 82% alternative fuel substitution and increased CEM II to 67% of cement sales. The new solar farm and bagging plant were commissioned, occasionally enabling zero-carbon electricity use at the site.
United States – platform takes shape, weather hit early season
US revenue jumped to £316.1m (+139%) and Underlying EBITDA to £42.8m (+73%), with margin of 13.5% reflecting first-time inclusion of lower-margin asphalt and a very wet, cold first half. On an organic basis, EBITDA was flat and margins a respectable 17.2%.
The Lionmark integration is largely complete and ahead of schedule, rebalancing the US business towards infrastructure and securing strong positions on Missouri’s I-70 programme. Lionmark contributed £161.4m of revenue and £21.1m of Underlying EBITDA in ten months.
Strategy in action: expand, improve, and decarbonise
- Expand – M&A: Lionmark in the US, plus bolt-ons Tor Multimix, Tipperary Asphalt and Hardcrete in GB/Ireland; Booth in Ireland announced post year-end. The pipeline is “well-populated”.
- Improve – efficiency and reserves: over £20m of savings from procurement, distribution and headcount; planning secured for 29m tonnes of minerals with another 129m tonnes in the pipeline.
- Sustainability: US added to SBTi disclosure; CDP Climate Change A-, Water Security upgraded to B; MSCI ESG score up to AAA; Breedon Balance products reached 39% of sales.
- Peak Cluster and British cement: shareholder agreement signed, FEED for the Hope carbon capture plant underway. Breedon expects to invest over £20m across related projects over three years ahead of a final investment decision and stepped up its “Back British Cement” advocacy ahead of CBAM roll-out.
Dividend and 2026 guidance: steady returns, sensible investment
The Board proposes a full-year dividend of 15.0p (+3%), a 47% payout reflecting confidence and strong cash generation. The final dividend of 10.25p is due 10 July 2026 for shareholders on the register 29 May 2026 (ex-dividend 28 May 2026).
For 2026, management guides to depreciation of about £120m, net interest expense around £35m and a 22%-23% tax rate. Capex is set at £120m-£130m with a working capital outflow of £20m-£30m. Note that the US result will include the typically loss-making January-February months for Lionmark.
Why this matters for investors
- Cash is king – and Breedon delivered: record post-Covid FCF, improving conversion and rapid in-year deleveraging put the Group in a good spot to keep investing through the cycle and fund bolt-on M&A.
- Margins proving resilient: despite weak GB volumes and pricing pressure late in the year, Group margin slippage was modest thanks to self-help. That discipline bodes well when volumes recover.
- US platform ahead of plan: Lionmark broadens the mix, tilts towards funded infrastructure and opens up larger project participation. The near-term drag from winter trading is flagged, but the strategic logic is clear.
- Near-term watch-outs: EPS fell, ROIC dipped to 7.8% (below the 10% medium-term target), and leverage is higher post-acquisition. UK demand indicators remain subdued, and pricing in some GB products was under pressure.
- Medium-term set-up: Ireland’s outlook is encouraging with national investment plans, US infrastructure funding remains supportive, and Breedon has extended financing (RCF to 2029, additional €95m USPP) at attractive fixed rates.
Quick take from Josh
Breedon did the hard yards in 2025 – simplify the structure, bank efficiencies, integrate US acquisitions and protect margins – all while cranking out cash. The UK market is still sluggish and ROIC needs to climb back to target, but the combination of strong cash generation, a flexible balance sheet and a busier M&A pipeline gives Breedon options. If volumes turn, this looks geared for operational leverage. Until then, the dividend ticks up and cash discipline does the talking.
