US, Ireland acquisitions underpin trading at Breedon

(Sharecast News) - Breedon Group said on Wednesday that trading in its first quarter was in line with expectations, with revenue growth supported by acquisitions in the United States and Ireland. The FTSE 250 construction materials group said revenue increased 5% in the quarter compared with the same period in 2025, benefiting from contributions from Lionmark in the US and Booth in Ireland.

On a like-for-like basis, revenue rose 2%, as an encouraging start in the US and Ireland offset a softer performance in Great Britain.

In Britain, Breedon said trading reflected a continuation of trends seen in the second half of last year.

Ready-mixed concrete volumes were sequentially lower in what remained a subdued residential market, although volumes in other products were more encouraging and there were signs of stabilisation in non-residential end markets.

Ireland made an encouraging start to the year, with volumes modestly ahead of the first quarter of 2025 and tendering in line with expectations.

Breedon said the acquisition of Booth completed towards the end of the quarter and integration was under way.

In the US, activity levels were significantly ahead of the prior year, helped by more stable weather in the Midwest, which allowed customers to complete preparatory works.

Aggregates and ready-mixed concrete volumes returned towards normal levels, supply to key infrastructure projects had started, and the group entered the construction season with healthy backlogs.

Chief executive Rob Wood said the first quarter was "a relatively small contributor to the year overall", but that Breedon had delivered an encouraging performance so far.

"We have increased our revenue, with volume growth in a number of key product categories, and have made good progress on our strategic objectives, including our operational excellence initiatives," he said.

Breedon said its layered commodity hedging programme was providing some cost certainty at a time of elevated input cost volatility following the conflict in the Middle East.

The group said it was adjusting product pricing through contractual escalators, surcharges and targeted price increases where appropriate.

It said it expected residential demand to remain challenging for the rest of 2026, while non-residential markets, which make up most of its end-market exposure, were expected to be more resilient.

"Despite elevated uncertainty and a less clear economic outlook, we remain confident in our financial strength and ability to adapt as required to changes in market conditions," Wood said.

He added that Breedon was pleased with early engagement from the UK Government on its "Back British Cement" campaign, aimed at creating a fair and competitive operating environment for the domestic cement industry.

Breedon said it would report interim results for the six months ending 30 June on 29 July.

At 0906 BST, shares in Breedon Group were up 0.39% at 307.2p.

Reporting by Josh White for Sharecast.com.

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