Breedon Group (LON:BREE) Releases Quarterly Earnings Results

Breedon Group (LON:BREE) released its quarterly earnings results on Wednesday. The company reported GBX 9.40 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 Stock Performance

Shares of BREE stock traded down GBX 9.80 during trading hours on Wednesday, reaching GBX 315.80. 789,266 shares of the company’s stock were exchanged, compared to its average volume of 7,289,363. The company has a debt-to-equity ratio of 53.71, a current ratio of 1.35 and a quick ratio of 1.12. The company’s 50 day moving average is GBX 297.94 and its two-hundred day moving average is GBX 316.81. The company has a market cap of £1.10 billion, a P/E ratio of 13.05, a price-to-earnings-growth ratio of 1.56 and a beta of 1.06. Breedon Group has a 1 year low of GBX 271.40 and a 1 year high of GBX 383.80.

Analyst Upgrades and Downgrades

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

Insider Buying and Selling at Breedon Group

In other Breedon Group news, insider Clive Watson purchased 2,611 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were purchased at an average cost of GBX 300 per share, for a total transaction of £7,833. Insiders purchased 16,411 shares of company stock valued at $4,937,100 in the last quarter. 23.27% of the stock is owned by insiders.

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.