Breedon Group plc (LSE:BREE) reported revenue of £1.71bn for 2025, a 9% increase year on year, supported by the acquisition of Lionmark and a full-year contribution from BMC. The group delivered modest growth in underlying EBITDA despite weaker like-for-like volumes in the UK and project delays in Ireland.
Profit before tax and earnings per share declined during the year, but the company generated record post-pandemic free cash flow of £133.2m. Improved free cash flow conversion and strong operating performance enabled Breedon to raise its dividend by 3%, highlighting the resilience of its cash generation and balance sheet flexibility.
Management pointed to several operational improvements aimed at strengthening efficiency and profitability. These included adopting a simplified country-based organisational structure, implementing cost-saving measures in Great Britain and expanding strategically in Ireland. The company also continued to build its presence in the United States, particularly in Missouri, where it is involved in major infrastructure projects.
Breedon is continuing to execute its EXPAND and IMPROVE strategy through targeted acquisitions, reserve extensions and operational efficiencies. At the same time, the group is advancing decarbonisation initiatives, including its participation in the Peak Cluster carbon capture project, while engaging with policymakers to encourage supportive regulatory frameworks for low-carbon cement production.
While demand conditions remain mixed, particularly in the UK construction market, management said it remains cautiously optimistic. The company is maintaining a disciplined approach to capital allocation while pursuing growth opportunities across its geographic markets.
Overall, Breedon’s outlook is supported by solid financial performance and strategic corporate actions. Although technical indicators suggest a degree of caution, the company’s valuation appears relatively attractive. Its proactive market strategy and continued stakeholder support provide additional confidence in its long-term prospects.
More about Breedon
Breedon Group is a vertically integrated construction materials company operating across Great Britain, Ireland and the United States. The group produces cement, aggregates, asphalt and ready-mixed concrete, supplying infrastructure, residential and commercial construction markets. Breedon is the largest cement producer in Great Britain and operates a network of quarries and downstream facilities, while also expanding its footprint in the United States.
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