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Breedon Group PLC (GB:BREE)
LSE:BREE
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Breedon (BREE) AI Stock Analysis

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GB:BREE

Breedon

(LSE:BREE)

Rating:77Outperform
Price Target:
407.00p
▲(12.49%Upside)
Breedon's strong financial performance and attractive valuation are key positives. Despite bearish technical signals, the internal confidence demonstrated by recent corporate events supports a favorable outlook. Investors should monitor technical trends closely while considering the stock's appealing valuation and growth potential.
Positive Factors
Environmental Sustainability
The group announced that its carbon reduction targets are now validated by SBTi.
Financial Performance
The group beat consensus at the underlying EBIT level, generated good cash and reduced debt to a very acceptable level.
Strategic Growth
The Lionmark deal for US$238m creates a business of scale and shows that the group is back in growth mode.
Negative Factors
Market Exposure
The group's high exposure to the UK should work in its favour over the medium term, with the new government set to drive housing and infrastructure.
Valuation Concerns
The current valuation fails to factor in the group's low carbon footprint, its US growth opportunity and a volume driven recovery.

Breedon (BREE) vs. iShares MSCI United Kingdom ETF (EWC)

Breedon Business Overview & Revenue Model

Company DescriptionBreedon Group plc, together with its subsidiaries, engages in the quarrying, manufacture, and sale of construction materials and building products in the United Kingdom and internationally. The company offers various aggregates, such as crushed rock, high polished stone value, sand and gravel, self-binding gravels, decorative aggregates, recycled aggregates, white limestone products, agricultural lime, granular mineral fillers, and welsh slates for use in the construction market. It also provides asphalt products for motorways, trunk roads, airport infrastructure, driveways, footpaths, farm roads, car parks, and recreational areas; and ready-mixed concrete, screeds, and mortar for various construction applications. In addition, the company offers concrete products, such as reconstructed stone walling, blocks, and other architectural masonry products; Portland cement; concrete roof tiles and ridge tiles; and clay bricks, as well as undertakes road surfacing and maintenance projects. Further, it provides traffic management services. The company was formerly known as Breedon Aggregates Limited and changed its name to Breedon Group plc in August 2016. The company was incorporated in 2007 and is based in Saint Helier, Jersey.
How the Company Makes MoneyBreedon Group makes money primarily through the extraction, production, and sale of construction materials. Its revenue streams include the sale of aggregates such as crushed stone, sand, and gravel, as well as the production and sale of ready-mixed concrete and asphalt. Additionally, Breedon operates cement plants and distributes cement products, contributing significantly to its earnings. The company benefits from long-term supply agreements and strategic partnerships with construction companies, infrastructure developers, and government projects, ensuring a consistent demand for its products. Moreover, Breedon's vertical integration strategy allows it to control the production process from raw material extraction to end-product delivery, optimizing efficiency and profitability.

Breedon Financial Statement Overview

Summary
Breedon demonstrates strong financial performance with consistent revenue growth and efficient operations. However, the increase in debt and slight decrease in net profit margin highlight areas for caution.
Income Statement
85
Very Positive
Breedon has shown a consistent increase in revenue over the years, with a notable growth rate of 6% from 2023 to 2024. The company also maintains strong gross and EBITDA margins, indicating efficient operations and profitability. However, the net profit margin slightly decreased from 2023 to 2024 due to a lower net income, which is a point of concern.
Balance Sheet
78
Positive
The company has a moderate debt-to-equity ratio, reflecting a balanced capital structure. The equity ratio remains robust, showcasing strong financial stability. However, the increase in total debt from 2023 to 2024 indicates a potential risk if not managed properly. The return on equity slightly decreased which indicates a need for better profitability.
Cash Flow
80
Positive
Breedon demonstrates strong operating cash flow, which is higher than net income, indicating good cash management. The free cash flow growth rate is slightly negative from 2023 to 2024, suggesting increased capital expenditures. The free cash flow to net income ratio remains healthy, showcasing efficient use of cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.58B1.49B1.40B1.23B928.70M
Gross Profit1.27B1.22B486.20M428.40M297.90M
EBITDA262.10M241.90M230.90M214.60M137.70M
Net Income96.20M105.50M112.50M78.50M33.60M
Balance Sheet
Total Assets2.11B1.87B1.79B1.67B1.62B
Cash, Cash Equivalents and Short-Term Investments28.90M126.90M101.70M83.90M31.70M
Total Debt434.20M296.80M299.40M296.40M350.00M
Total Liabilities943.40M762.10M742.00M719.70M730.90M
Stockholders Equity1.17B1.11B1.04B949.60M888.30M
Cash Flow
Free Cash Flow70.40M86.90M61.20M117.20M130.30M
Operating Cash Flow201.70M193.70M168.00M194.10M168.40M
Investing Cash Flow-296.20M-120.40M-112.90M-75.50M-177.80M
Financing Cash Flow-3.00M-46.60M-38.00M-65.90M16.90M

Breedon Technical Analysis

Technical Analysis Sentiment
Negative
Last Price361.80
Price Trends
50DMA
413.68
Negative
100DMA
431.01
Negative
200DMA
431.37
Negative
Market Momentum
MACD
-10.79
Positive
RSI
31.25
Neutral
STOCH
30.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BREE, the sentiment is Negative. The current price of 361.8 is below the 20-day moving average (MA) of 381.40, below the 50-day MA of 413.68, and below the 200-day MA of 431.37, indicating a bearish trend. The MACD of -10.79 indicates Positive momentum. The RSI at 31.25 is Neutral, neither overbought nor oversold. The STOCH value of 30.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BREE.

Breedon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£102.41M16.846.47%377.47%-9.35%-35.39%
77
Outperform
£1.25B13.907.90%400.77%7.83%-7.40%
76
Outperform
£1.30B55.793.68%65.87%3.47%
64
Neutral
£527.27M17.094.76%348.78%-7.75%66.58%
63
Neutral
£392.16M22.418.09%161.12%-0.61%34.19%
57
Neutral
£588.83M38.853.80%196.77%-9.77%-28.49%
44
Neutral
C$980.66M-6.79-13.68%1.76%17.37%-32.98%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BREE
Breedon
361.80
-47.38
-11.58%
GB:FORT
Forterra
186.20
6.88
3.84%
GB:IBST
Ibstock
149.20
-30.70
-17.07%
GB:MSLH
Marshalls
209.50
-132.14
-38.68%
GB:MBH
Michelmersh Brick Holdings
111.00
16.53
17.50%
GB:SRC
SigmaRoc
116.60
47.70
69.23%

Breedon Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Breedon Group Directors Increase Shareholdings, Signaling Confidence
Positive
Jul 24, 2025

Breedon Group PLC announced that its directors, Rob Wood and James Brotherton, have purchased additional ordinary shares in the company, reflecting their confidence in its future prospects. This move, disclosed in compliance with the UK Market Abuse Regulation, may bolster investor confidence and indicates strong internal belief in the company’s strategic direction.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Regulatory Filings and Compliance
Breedon Group Director-Linked Share Purchase Highlights Market Confidence
Positive
Jul 24, 2025

Breedon Group PLC announced a transaction involving Mary Watson, closely associated with Clive Watson, a Non-executive Director of the company. On 23 July 2025, Mary Watson purchased a total of 7,325 ordinary shares at prices of £3.536 and £3.591 per share. This transaction, disclosed under the UK Market Abuse Regulation, reflects ongoing investment interest and confidence in the company’s market position.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
Breedon Group Reports Resilient H1 2025 Performance Amid Market Challenges
Neutral
Jul 23, 2025

Breedon Group PLC reported a resilient performance for the first half of 2025 despite challenging market conditions. The company’s revenue increased by 7% due to the acquisition of Lionmark, which diversified its US end-market exposure. However, like-for-like revenue decreased by 3% due to adverse conditions in Great Britain and the US, and project delays in Ireland. The company’s EBITDA margin slightly decreased, reflecting market challenges, but disciplined cost management helped mitigate the impact. Breedon increased its interim dividend, showing confidence in future prospects, and expects full-year results to be at the lower end of market expectations. The company remains optimistic about its medium-term prospects, supported by strong order backlogs and government infrastructure investments.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Breedon Group to Host Live Investor Presentation
Positive
Jul 17, 2025

Breedon Group plc has announced a live interactive presentation for shareholders and investors on the Engage Investor platform, scheduled for July 23, 2025. This event aims to engage stakeholders by allowing them to submit questions and learn more about the company’s operations and strategies. The presentation reflects Breedon’s commitment to transparency and investor relations, potentially strengthening its position in the construction materials industry.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Regulatory Filings and Compliance
Breedon Group Announces Total Voting Rights Update
Neutral
Jun 30, 2025

Breedon Group PLC announced that its total issued share capital consists of 346,497,565 ordinary shares, all of which carry voting rights. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Breedon Group’s Major Holdings Update: BlackRock Adjusts Voting Rights
Neutral
Jun 27, 2025

Breedon Group PLC, a UK-based company, has announced a change in its major holdings. BlackRock, Inc., a significant shareholder, has adjusted its voting rights in the company. The notification indicates that BlackRock’s total voting rights have decreased from 7.97% to 7.25%, reflecting a shift in their financial instrument holdings. This change could influence Breedon’s shareholder dynamics and potentially impact its strategic decisions moving forward.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Financial Disclosures
Breedon Group to Announce Interim Results and Host Investor Presentation
Positive
Jun 24, 2025

Breedon Group plc announced that it will release its interim results for the half year ended 30 June 2025 on 23 July 2025. The company will host an in-person earnings presentation for analysts and investors at the London Stock Exchange, which will also be webcast live. This announcement highlights Breedon’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations positively.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

DividendsBusiness Operations and Strategy
Breedon Director Increases Stake Through Dividend Reinvestment
Positive
Jun 16, 2025

Breedon Group plc announced that Clive Watson, a Non-executive Director and Person Discharging Managerial Responsibilities, acquired 621 ordinary shares of the company through a dividend reinvestment plan. This transaction, conducted on the London Stock Exchange, reflects the director’s continued confidence in the company’s financial performance and strategic direction.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Regulatory Filings and Compliance
Breedon Group Announces Total Voting Rights Update
Neutral
May 30, 2025

Breedon Group PLC has announced that its issued share capital consists of 346,473,017 ordinary shares, all of which carry voting rights. This information is crucial for shareholders as it determines the denominator for calculating any changes in their shareholding interests under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:BREE) stock is a Buy with a £460.00 price target. To see the full list of analyst forecasts on Breedon stock, see the GB:BREE Stock Forecast page.

Other
Lansdowne Partners Increases Stake in Breedon Group
Positive
May 6, 2025

Breedon Group PLC, a company in the construction materials industry, has announced a change in its major shareholders. Lansdowne Partners (UK) LLP has increased its voting rights in Breedon Group to 5.086521% from a previous 4.980784%. This change in shareholding indicates a growing interest and confidence in Breedon Group’s market position and future prospects by Lansdowne Partners.

Regulatory Filings and Compliance
Breedon Group Director Acquires Shares, Signaling Confidence
Positive
May 2, 2025

Breedon Group PLC announced that Clive Watson, a Non-executive Director and Person Discharging Managerial Responsibility, purchased 3,223 ordinary shares at a price of £4.50 each. This transaction, conducted outside a trading venue, aligns with the UK Market Abuse Regulation requirements, indicating a potential vote of confidence in the company’s future prospects.

Regulatory Filings and Compliance
Breedon Group Announces Total Voting Rights
Neutral
Apr 30, 2025

Breedon Group PLC has announced its total voting rights in accordance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. The company’s issued share capital consists of 346,298,542 ordinary shares, all of which have voting rights. This information is crucial for shareholders to determine their interest in the company and any changes to it.

Shareholder MeetingsBusiness Operations and Strategy
Breedon Group PLC Announces Successful AGM Resolutions
Positive
Apr 29, 2025

Breedon Group PLC announced the successful passage of all resolutions at its Annual General Meeting held on April 29, 2025. The resolutions, which included both ordinary and special resolutions, were approved by shareholders via a poll. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives, potentially impacting its operational efficiency and market competitiveness.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Breedon Group Reports Revenue Growth Amidst Challenging Conditions
Positive
Apr 29, 2025

Breedon Group plc reported a 9% increase in revenue for Q1 2025, attributed to acquisitions and stable pricing, despite weather challenges impacting operations, particularly in the USA. The company continues to focus on strategic objectives, enhancing operational efficiencies, and expanding its US infrastructure exposure through acquisitions like Lionmark. Breedon remains well-positioned to benefit from improvements in construction market activity, with ongoing projects in cement and alternative fuels nearing completion.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025