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Breedon
(LSE:BREE)
Select Model
Select Model
Rating:73Outperform
Price Target:
384.00 p
▲(21.90% Upside)
Action:Upgraded
Date:08/06/26
Overall score reflects solid underlying financial performance with improving cash generation, but tempered by rising leverage risk in 2025 and uneven free-cash-flow conversion. Technicals are supportive with strong trend and positive momentum, and valuation is helped by a moderate P/E and a high dividend yield.
Positive Factors
Vertical integration
Breedon's vertical model—from quarries to asphalt, concrete and contracting—captures margin across the value chain, improves asset utilisation and gives pricing control on internal supply. This structural integration supports durable margin capture and resilience across construction cycles.
Negative Factors
Rising leverage
A sharp increase in total debt in 2025 raises financial risk and reduces balance-sheet flexibility. Higher leverage increases interest and refinancing exposure, making the company more vulnerable to slower construction activity or margin pressure over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration
Breedon's vertical model—from quarries to asphalt, concrete and contracting—captures margin across the value chain, improves asset utilisation and gives pricing control on internal supply. This structural integration supports durable margin capture and resilience across construction cycles.
Read all positive factors
Breedon (BREE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.23B
Dividend Yield2.77%
Average Volume (3M)1.30M
Price to Earnings (P/E)15.1
Beta (1Y)1.18
Revenue Growth7.88%
EPS Growth-9.34%
CountryUK
Employees4,900
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.23
Shares Outstanding347,090,900
10 Day Avg. Volume1,251,320
30 Day Avg. Volume1,303,759
Financial Highlights & Ratios
PEG Ratio-0.96
Price to Book (P/B)0.95
Price to Sales (P/S)0.66
P/FCF Ratio10.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£416.33Price Target Upside32.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.28
Revenue Forecast (FY)£1.78B
Breedon Business Overview & Revenue Model
Company Description
Breedon Group plc, together with its subsidiaries, engages in the quarrying, manufacture, and sale of construction materials and building products in the Great Britain, Ireland, and the United States. The company offers aggregates, asphalt, cement...
How the Company Makes Money
Breedon primarily makes money by producing and selling construction materials and, in some cases, installing those materials through contracting services. Its key revenue streams typically include: (1) Aggregates: sales of quarried crushed stone a...
Breedon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.76B | 1.71B | 1.58B | 1.49B | 1.40B | 1.23B |
| Gross Profit | 759.40M | 927.70M | 1.27B | 1.22B | 486.20M | 428.40M |
| EBITDA | 270.10M | 269.80M | 262.10M | 241.90M | 230.90M | 214.60M |
| Net Income | 81.80M | 83.80M | 96.20M | 105.50M | 112.50M | 78.50M |
Balance Sheet | ||||||
| Total Assets | 2.56B | 2.36B | 2.11B | 1.87B | 1.79B | 1.67B |
| Cash, Cash Equivalents and Short-Term Investments | 80.10M | 115.50M | 28.90M | 126.90M | 101.70M | 83.90M |
| Total Debt | 770.60M | 642.80M | 434.20M | 296.80M | 299.40M | 296.40M |
| Total Liabilities | 1.33B | 1.16B | 943.40M | 762.10M | 742.00M | 719.70M |
| Stockholders Equity | 1.24B | 1.20B | 1.17B | 1.11B | 1.04B | 949.60M |
Cash Flow | ||||||
| Free Cash Flow | 124.00M | 111.00M | 70.40M | 86.90M | 61.20M | 117.20M |
| Operating Cash Flow | 242.60M | 231.10M | 201.70M | 193.70M | 168.00M | 194.10M |
| Investing Cash Flow | -217.80M | -270.40M | -296.20M | -120.40M | -112.90M | -75.50M |
| Financing Cash Flow | -7.50M | 82.30M | -3.00M | -46.60M | -38.00M | -65.90M |
Breedon Technical Analysis
Positive
315.00
Price Trends
313.32
Positive
303.23
Positive
313.30
Positive
Market Momentum
12.63
Negative
66.09
Neutral
79.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BREE, the sentiment is Positive. The current price of 315 is below the 20-day moving average (MA) of 333.77, above the 50-day MA of 313.32, and above the 200-day MA of 313.30, indicating a bullish trend. The MACD of 12.63 indicates Negative momentum. The RSI at 66.09 is Neutral, neither overbought nor oversold. The STOCH value of 79.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BREE.
Breedon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.23B | 15.09 | 6.73% | 4.76% | 7.88% | -9.34% | |
70 Outperform | £316.03M | 17.55 | 7.98% | 4.59% | -4.66% | 16.91% | |
69 Neutral | £1.47B | 17.94 | 10.11% | ― | 7.62% | 248.33% | |
66 Neutral | £70.71M | 19.70 | 3.91% | 5.86% | -1.73% | -39.61% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | £429.62M | 20.82 | 3.79% | 4.44% | -0.25% | -12.96% | |
48 Neutral | £358.28M | -15.47 | -6.19% | 3.19% | -10.12% | -287.99% |
* Basic Materials Sector Average
GB:BREE
Breedon
352.40
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Breedon Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Breedon lifts revenue, boosts dividend as Ireland and U.S. offset GB softness
Positive
Jul 29, 2026
Breedon reported a 5% rise in first-half 2026 revenue to £857.9m, with like-for-like growth and acquisitions in Ireland and the U.S. offsetting ongoing weakness in the GB residential market. Underlying EBITDA was broadly flat at £115.5m,...
Business Operations and StrategyExecutive/Board Changes
Breedon bolsters board with appointment of sector veteran Louis Eperjesi
Positive
Jul 29, 2026
Breedon Group has strengthened its board with the appointment of building materials veteran Louis Eperjesi as a non-executive director, effective in early 2027. He will sit on the Audit and Risk, Remuneration, Nomination and Sustainability Committ...
DividendsRegulatory Filings and Compliance
Breedon Director Clive Watson Increases Stake Through Dividend Reinvestment
Positive
Jul 16, 2026
Breedon Group disclosed that non-executive director and PDMR Clive Watson purchased 1,601 ordinary shares in the company via a dividend reinvestment on 14 July 2026, at a price of £2.909268 per share. The transaction, conducted on the London ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Breedon boosts U.S. growth with $120m Falling Springs Quarry deal
Positive
Jun 9, 2026
Breedon Group has expanded its U.S. footprint with the $120m acquisition of Falling Springs Quarry near St Louis, a highly automated operation with an estimated 185 million tonnes of limestone reserves and annual output exceeding 2.2 million tonne...
Business Operations and StrategyM&A Transactions
Breedon boosts US footprint with $120m Falling Springs quarry deal
Positive
Jun 9, 2026
Breedon Group has completed the US$120 million acquisition of Falling Springs Quarry, a highly automated limestone operation with significant reserves located near downtown St Louis, Missouri. The asset will be integrated into Breedon’s exis...
Other
Breedon Director Clive Watson Increases Stake with £49,000 Share Purchase
Positive
May 13, 2026
Breedon Group has disclosed that non-executive director Clive Watson, a person discharging managerial responsibilities, purchased multiple tranches of the company’s ordinary shares on 11 May 2026. The transactions were executed at prices aro...
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.