Breedon Group (LSE:BREE), the building materials group, reported first-half revenue up 5% to £858m, with underlying EBITDA broadly flat as growth in Ireland and the United States offset falling GB residential volumes.
The group, which operates aggregates, cement, asphalt and ready-mixed concrete businesses across Great Britain, Ireland and the US, said like-for-like earnings improved slightly despite the mixed picture.
US revenue rose 20%, or 13% like-for-like, with underlying EBITDA up 14% on a like-for-like basis as more stable Midwest weather supported volumes.
Irish revenue grew 12% with underlying EBITDA up 3%, held back by an unscheduled shutdown of the Kinnegad cement mill in May, since resolved.
In Great Britain, underlying EBITDA fell 3% as ready-mixed concrete volumes dropped a further 8%, though aggregates and asphalt showed signs of stabilisation, aided by infrastructure project wins.
Breedon deployed £110m on bolt-on acquisitions, including Falling Springs in the US and Booth, which secures aggregates supply near Dublin.
Covenant leverage fell to 2.1 times from the first half of 2025, and the board raised the interim dividend by 5%.
"We are building an increasingly diversified business in the structurally attractive Irish and US markets," said chief executive Rob Wood, adding the group retains "significant upside in GB once volumes recover".
The board maintained full-year guidance in line with market expectations, citing continued momentum in Ireland and the US, while GB construction demand is expected to decline for a fifth consecutive year.
News Intelligence what this means for the company
Breedon maintained full-year guidance despite a mixed first half: US and Irish operations grew strongly (US EBITDA up 14% like-for-like, Ireland up 3%), but Great Britain's underlying EBITDA fell 3% as ready-mixed concrete volumes dropped 8% for a fifth consecutive year. The company deployed £110m on bolt-on acquisitions and cut leverage to 2.1x, signalling management confidence in the diversification strategy even as GB demand remains under pressure.
Breedon's ability to offset GB structural decline with US and Irish growth has kept guidance intact and leverage falling, but the company remains exposed to a fifth year of GB contraction with no clear recovery timeline. The investment case hinges on whether US and Irish momentum can sustain earnings growth while GB stabilises.
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