UK-based Breedon Group plc reported a seven per cent increase in revenue in the 1H25 to GBP815.9m (US$1106.8m) from GBP764.6m in the 1H24, thanks to the acquisition of Lionmark. Like-for-like (LfL) revenue declined by three per cent with the volume and mix down four per cent due to challenging British markets, major project delays in Ireland and adverse US weather conditions. Stable pricing was backed by strong order backlogs and enquiries in key markets.

EBITDA saw a one per cent YoY uptick to GBP110m in the January-June period from GBP109.1m, but EBITDA margin slipped 80 basis points to 13.5 per cent from 14.3 per cent. LFL EBITDA declined three per cent YoY to GBP115m from GBP118.1m. LfL underlying EBITDA margin declined by 30 basis points to 14.1 per cent from 15.4 per cent.

Profit before tax declined 25 per cent YoY to GBP34.9m in the 1H25 from GBP46.5m in the 1H24. 

The company increased its debt by 37 per cent YoY to GBP648.1m from GBP472.3m in the 1H24.

Market review
In Great Britain Breedon reported a revenue of GPB480.7m, down two per cent and four per cent LfL, when compared with the 1H24, when revenue stood at GBP492.4m. 
Underlying EBITDA fell eight per cent (LfL nine per cent) to GBP56.4m from GBP61.6m. The underlying EBITDA margin contract by 80 basis points (70 basis points LfL) to 11.7 per cent from 12.5 per cent. 

"In the first half, GB end-markets remained very challenging and, although enquiry levels were elevated throughout the period, a lack of business confidence and weak economic sentiment presented a headwind to activity," explained the company. While the first quarter saw modest growth, GB volumes declined and pricing remained soft in the first half of the year. 

In Ireland revenue dropped seven per cent YoY to GBP103m from GBP111.2m in the 1H24. Underlying EBITDA remained stable at GBP17.5m while the underlying EBITDA margin improved 130 basis points to 17 per cent from 15.7 per cent in the 1H24. 

"Our Ireland business delivered a robust performance in the first half. While volumes were slightly lower for both aggregates and asphalt, and we saw lower levels of activity in our streetlighting services business, our ready-mixed concrete volumes improved," said Breedon.

In the USA revenue was up 140 per cent (eight per cent LfL) to GBP127.2m in the 1H25 from GBP53m in the 1H24. Underlying EBITDA advanced 27 per cent (two per cent LfL) to GBP13m from GBP10.2m, but the underlying EBITDA margin fell by 900 basis points (100 basis points LfL) to 10.2 per cent from 19.2 per cent.

Missouri was reported to have had one of the coldest winters and wettest spring construction seasons on record. Therefore, while backlogs remained healthy, particularly in relation to infrastructure projects, site activity was disrupted.

"During the period like-for-like aggregates volumes grew three per cent, benefitting from crushing and conveyor investments made in 2024 to support new business wins on the I70 project. Like-for-like ready-mixed concrete volumes were broadly flat. Pricing in the US market remains positive leading to a constant currency like-for-like revenue increase of eight per cent H1 on H1," according to the company.

Cement performance
In the 1H25 Breedon sold 1Mt of cement, three per cent less than in the equivalent period of the previous year, ready-mix concrete sales edged up by one per cent to 1.5Mm3 while aggregate volumes increased by three per cent to 13.9Mt. Asphalt sales increased by seven per cent to 1.9Mt. However, LfL cement and ready-mix concrete volumes were down three per cent and aggregates and asphalt volumes slipped two per cent YoY.

Cement sales revenue declined four per cent YoY to GBP150.2m in the 1H25 from GBP156.9m, leading to an underlying EBITDA that contracted five per cent to GBP36.5m from GBP38.4m. The underlying EBITDA margin was down by 20 basis points to 24.3 per cent from 24.5 per cent. 

"Our cement business delivered a resilient performance in the first half. In Ireland the market was steady, underpinned by the robust economic backdrop in RoI and an active housebuilding market. Trading in GB reflected the challenges observed in the ready-mixed concrete market where volumes are at levels last seen in 1963," said the company.