Breedon Group (LON:BREE) Issues Earnings Results

Breedon Group (LON:BREE) posted its earnings results on Wednesday. The company reported GBX 9.40 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Breedon Group had a return on equity of 7.14% and a net margin of 4.89%.

Here are the key takeaways from Breedon Group’s conference call:

• Solid first-half performance: Reported revenue rose 5% and like-for-like revenue increased about 3%, while underlying EBITDA was broadly flat; the company also raised its interim dividend.
• Regional performance diverged: Ireland and the U.S. delivered strong growth, including mid-teens like-for-like revenue and EBITDA growth in the U.S., while continued residential weakness caused G.B. ready-mix concrete volumes to fall 8%.
• Cash generation and leverage remain manageable: First-half free cash outflow improved to approximately £15 million from £25 million, with full-year net debt expected near £650 million and leverage close to two times.
• Breedon continued to pursue strategic acquisitions and investment, including Falling Springs in the U.S. and Booth in Ireland, while highlighting a healthy pipeline of primarily bolt-on opportunities and major Scottish renewables-related infrastructure demand.
• G.B. market conditions remain difficult: Management expects market demand to decline for a fifth consecutive year, sees little underlying pricing growth beyond surcharges in 2026, and reported post-tax returns on invested capital remain below target.

Breedon Group Price Performance

BREE stock traded down GBX 9.20 on Wednesday, reaching GBX 316.40. 1,047,653 shares of the company’s stock were exchanged, compared to its average volume of 7,291,188. Breedon Group has a twelve month low of GBX 271.40 and a twelve month high of GBX 383.80. The company has a quick ratio of 1.12, a current ratio of 1.35 and a debt-to-equity ratio of 53.71. The stock has a fifty day moving average of GBX 297.94 and a 200-day moving average of GBX 316.81. The firm has a market cap of £1.10 billion, a PE ratio of 13.07, a P/E/G ratio of 1.56 and a beta of 1.06.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on BREE. Stifel Nicolaus lowered their price objective on Breedon Group from GBX 430 to GBX 415 and set a “buy” rating for the company in a research report on Tuesday, March 31st. Berenberg Bank reaffirmed a “buy” rating and set a GBX 465 price target on shares of Breedon Group in a research report on Wednesday, June 10th. Finally, Citigroup cut their target price on shares of Breedon Group from GBX 340 to GBX 310 and set a “neutral” rating on the stock in a report on Wednesday, June 24th. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Breedon Group currently has an average rating of “Moderate Buy” and a consensus price target of GBX 443.

More Breedon Group News

Here are the key news stories impacting Breedon Group this week:

• Positive Sentiment: Revenue growth and resilient overseas markets: Higher revenue was supported by Breedon’s US and Irish operations, which offset softer demand in Great Britain. Management described first-half trading as solid and kept its full-year expectations on track. Revenue up at Breedon, but Britain declines
• Positive Sentiment: Higher shareholder payout: Breedon raised its dividend despite the challenging UK market, signaling continued confidence in cash generation and the group’s financial position. Breedon Reports Higher Revenue and Raises Dividend Despite Continued GB Market Weakness
• Neutral Sentiment: Outlook unchanged: Management continues to expect the business to meet its full-year plan, although that guidance depends on continued strength in North America and Ireland to balance conditions in Great Britain. Breedon keeps outlook on track despite softer UK market
• Negative Sentiment: UK market weakness and lower profit: Breedon flagged a gloomy outlook for Great Britain, where construction activity and demand remain subdued. Reports also highlighted a profit decline, making the revenue improvement less encouraging for investors. Breedon flags gloomy UK outlook, but lifts payout despite profit drop

Insider Buying and Selling at Breedon Group

In related news, insider Clive Watson acquired 11,271 shares of Breedon Group stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average price of GBX 301 per share, for a total transaction of £33,925.71. Over the last 90 days, insiders have acquired 16,411 shares of company stock worth $4,937,100. Corporate insiders own 23.27% of the company’s stock.

Breedon Group Company Profile

Breedon Group plc, a leading vertically-integrated construction materials group in Great Britain, Ireland and the USA, delivers essential products to the construction sector. Breedon holds 1.5bn tonnes of mineral reserves and resources with long reserve life, supplying value-added products and services, including specialty materials, surfacing and highway maintenance operations, to a broad range of customers through its extensive local network of quarries, ready-mixed concrete and asphalt plants.