Breedon flags gloomy UK outlook, but lifts payout despite profit drop
Breedon Group PLC on Wednesday said profit fell in the first six months of 2026 as it forecast demand in the UK will decline for a fifth consecutive year.
The Derby, England-based construction materials firm said pretax profit fell 23% to £26.7 million in the six months ended June 30 from £34.9 million the year prior, although revenue rose 5.1% to £857.9 million from £815.9 million.
Revenue reflected like-for-like growth alongside contributions from M&A in Ireland and the US, and a "creditable" performance given trading conditions in the UK.
Aggregates and asphalt volumes each saw "encouraging" like-for-like levels of growth; however ready-mixed concrete in particular was "subdued".
Basic earnings per share fell to 7.4 pence from 8.0p on-year and 16% on an underlying basis to 9.4p from 11.2p.
The interim dividend was boosted by 5.3% to 5.0p per share from 4.75p.
Guidance was maintained. Breedon expects 2026 performance in line with market expectations with positive momentum in Ireland and the US. In the UK, although infrastructure provides some support, market indicators suggest demand will decline for a fifth consecutive year.
Shares in Breedon fell 3.8% to 313.40 pence each in London on Wednesday.
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