Construction materials group Breedon has provided a trading update for the ten months to 31 October 2025.
Breedon says that, compared with the same period in 2024, revenue for the first ten months increased by 9%, and for the four months to 31 October by 12%, assisted by contributions from acquisitions. On a like-for-like basis, revenue decreased 3% in the first ten months and decreased 3% for the four months to 31 October, consistent with the trends reported to the half year.
The group states that market challenges have persisted to date in 2025. Delays in key infrastructure projects in GB and Ireland have compounded subdued demand in GB and US residential markets. Against this backdrop, the group has continued to focus on integrating Lionmark and self-help, alongside operational and commercial excellence initiatives.
Trading in GB has seen subdued year-to-date demand, and near-term construction activity expectations have decreased. Breedon says that, while its enquiries remain elevated, they have not yet converted into orders.
Trading in Ireland has been impacted by the deferral of some major infrastructure projects; however, the market in the Republic of Ireland has an encouraging outlook following the publication of the National Development Plan earlier this year.
In the US, while the business has made up some of the work delayed by weather in the first half, market growth expectations have moderated as the year has progressed. Breedon adds that its US backlogs, however, are healthy, and infrastructure markets in the Midwest remain encouraging, with significant projects such as the I-70 progressing. New-build residential remains subdued due to affordability constraints.
Despite market conditions, Breedon says it expects to deliver a further year of profitable growth, with Underlying EBITDA for the year between £275m and £280m, and a reduction in Covenant Leverage at year-end.
Outlook
Breedon says that in the medium term, it is encouraged by the UK Government’s commitment to infrastructure and housebuilding, which will lead to increased demand for construction materials as market activity improves. However, at present, there is considerable economic and fiscal uncertainty in the UK.
The National Development Plan in the Republic of Ireland represents a significant increase in potential infrastructure investment which the group will be well placed to benefit from over the next few years.
In the US, there remains considerable opportunity to build out Breedon’s business with upside from residential when activity returns. In the near term, while non-residential and infrastructure markets remain resilient, market growth expectations have moderated.
Breedon CEO Rob Wood commented: “Breedon continues to deliver resilient performance despite sustained market challenges. Our focus on operational and commercial excellence and strategic execution has continued to deliver profitable growth. We remain confident in the Group’s prospects, with our key end markets across our geographies poised to benefit from long-term structural growth drivers.
“While there is still uncertainty about the timing of a market recovery, particularly in the UK, we have an excellent team, three leading platforms and a well-invested estate. We remain well placed to take advantage of any improvement in construction market activity.”
