Half Year 2026 Breedon Group PLC Earnings Call Transcript
Key Points
- Breedon Group PLC (BRDNF) delivered a solid first-half performance with reported revenue up 5% and like-for-like revenue up 3%, the first like-for-like growth in a first half since 2023.
- Strong momentum in Ireland and the US offset continued market challenges in GB, with the US business posting like-for-like revenue and EBITDA growth in the mid-teens.
- The company successfully managed the short-term impacts of the Middle East conflict on energy costs through hedging programs and pricing actions, minimizing the financial impact.
- Breedon Group PLC (BRDNF) completed two strategically compelling, earnings-accretive acquisitions in the US and Ireland at attractive valuations, expanding its footprint.
- The company increased its interim dividend, reflecting confidence in long-term prospects and strong cash generation, despite a challenging market environment.
- GB market demand is expected to decline for the fifth consecutive year, with residential weakness particularly impacting ready-mix concrete volumes, which fell 8% year-on-year.
- Underlying EBITDA was flat year-on-year, and the EBITDA margin dipped slightly to 13.5%, impacted by lower profitability in GB and an unscheduled cement mill shutdown in Ireland.
- Post-tax return on invested capital remains lower than desired, diluted by short-term acquisition impacts and absolute profitability levels.
- The Irish cement mill shutdown in May resulted in an estimated net opportunity cost of a couple of million pounds in EBITDA, impacting first-half margins.
- Pricing in GB remains challenging, with no real price increases expected in 2026; any pricing is limited to surcharges due to a weak and declining market.
(inaudible) Breedon's 2026 Interim Results Presentation. We're joined today by Rob Wood, Breedon's CEO; and James Brotherton, Breedon's CFO. And in a second, I'll hand over to them to present their highlights from the first half of 2026. After that, we'll open the floor up to questions in the room. And as ever, we would encourage you to do your very best to limit yourself to two each.
When you ask those questions if you could introduce both your name and your institution, that would be really helpful. We'll then go to the phone lines for any virtual questions before wrapping up. I think finally, to say, we know it's really busy this week. So thank you very much, everyone, for coming. We will try to get through it at a decent clip, and we'll be around afterwards if there's anything that you'd like to come back on.
So without further ado, I will hand over to Rob.
Thanks,
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