Breedon backs FY expectations as Q1 revenues rise

(Sharecast News) - Building materials group Breedon backed its full-year expectations on Tuesday and posted a rise in first-quarter revenue as it benefited from the BMC and Lionmark acquisitions. Reported revenue was up 9% versus the same quarter a year earlier. Breedon said it was hit by poor weather conditions during the period, particularly in the US, and on a like-for-like basis revenue increased fractionally with a slight improvement in volumes and broadly stable pricing.

Enquiry levels in GB remained elevated, with volumes across all key product groups slightly ahead of the first quarter of 2024. Breedon said the surfacing business continued to win high quality work on the road network and in airfield resurfacing.

The group hailed a busy tendering season in Ireland but said it has seen delays in certain key infrastructure projects, with volumes in the quarter modestly behind Q1 2024.

Meanwhile, volumes in the US were impacted by challenging weather conditions, most notably an extended period of below freezing temperatures.

In the cement business, Breedon completed two scheduled kiln maintenance shutdowns, on time and within budget.

Chief executive Rob Wood said: "In the first quarter we have grown our revenues and delivered on our strategic objectives against an increasingly uncertain economic backdrop. Although weather conditions were again challenging, underlying levels of demand remained supportive.

"We welcomed our new Lionmark colleagues to the group and the acquisition has increased our vertical integration and diversified our US exposure towards infrastructure and growing state road maintenance budgets.

"The very nature of our business, supplying local products to local businesses, provides some insulation in the current economic climate. While the board's expectations for 2025 remain unchanged we have enhanced our focus on self-help, driving operational and commercial excellence, further unlocking efficiencies and optimising capacity. While visibility is reduced, we remain optimally positioned to benefit when construction market activity improves."