Breedon Group’s shares dropped over 7.5% on July 23 after the company issued a trading update, warning that its full-year results are expected to fall at the lower end of market forecasts.
The construction materials firm posted a 7% increase in total revenue, reaching £815.9 million, largely due to its March acquisition of US-based Lionmark. However, like-for-like revenue and underlying EBITDA saw a decline of 3% in the first half of the year.
Profit before tax dropped by 25%, settling at £34.9 million, with EBITDA margins shrinking by 130 basis points to 14.1%. The company cited weak market conditions in the UK and adverse weather conditions in the US as factors contributing to the downturn.
Despite these setbacks, Breedon remains optimistic about the long-term outlook, citing major infrastructure programmes in the UK, Ireland, and US that will continue to support demand. The company is also focusing on strategic acquisitions in the US, where it sees significant potential in infrastructure-driven growth.
