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Breedon
(LSE:BREE)
Select Model
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Rating:73Outperform
Price Target:
341.00 p
▼(-5.01% Downside)
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
Steady Revenue Growth
Consistent revenue growth across several years indicates sustained demand for Breedon’s construction materials rather than a single-period uplift. Continued top-line expansion supports operating scale, helps absorb fixed production costs, and provides a durable base for future earnings.
Negative Factors
Sharp Debt Increase
The sharp increase in total debt materially changes Breedon’s recent balance-sheet profile after several years of more conservative leverage. Higher obligations can reduce financial flexibility, increase financing sensitivity, and constrain investment capacity if construction activity weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Consistent revenue growth across several years indicates sustained demand for Breedon’s construction materials rather than a single-period uplift. Continued top-line expansion supports operating scale, helps absorb fixed production costs, and provides a durable base for future earnings.
Read all positive factors
Breedon (BREE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.14B
Dividend Yield4.66%
Average Volume (3M)1.01M
Price to Earnings (P/E)14.0
Beta (1Y)1.17
Revenue Growth7.88%
EPS Growth-9.34%
CountryUK
Employees4,900
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.23
Shares Outstanding347,103,970
10 Day Avg. Volume874,934
30 Day Avg. Volume1,008,403
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 Upside15.97% 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 makes money by selling construction materials and related services across the UK and Ireland. Its core revenue streams are: (1) Aggregates: income from the sale of crushed rock, sand and gravel produced from its quarrying operations and so...
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 | 213.30M |
| 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
359.00
Price Trends
323.94
Positive
317.61
Positive
311.83
Positive
Market Momentum
3.78
Negative
53.66
Neutral
71.65
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 359 is above the 20-day moving average (MA) of 318.69, above the 50-day MA of 323.94, and above the 200-day MA of 311.83, indicating a bullish trend. The MACD of 3.78 indicates Negative momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 71.65 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 | £1.14B | 14.00 | 6.73% | 4.66% | 7.88% | -9.34% | |
66 Neutral | £63.92M | 17.41 | 4.06% | 6.52% | -7.01% | -28.77% | |
66 Neutral | £1.34B | 14.94 | 10.54% | ― | 4.46% | 100.00% | |
65 Neutral | £323.27M | 18.89 | 7.98% | 3.67% | -4.66% | 16.91% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | £434.65M | 21.11 | 3.79% | 4.05% | -0.25% | -12.96% | |
49 Neutral | £321.74M | -14.07 | -6.19% | 2.46% | -10.12% | -287.99% |
* Basic Materials Sector Average
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Breedon Corporate Events
Business Operations and Strategy
Breedon showcases vertically integrated model in investor site visit
Positive
Oct 7, 2026
Breedon Group plc will host investors and analysts at its Hope Cement Works and Dowlow Quarry in Derbyshire, showcasing its vertically integrated operating model in Great Britain. The visit, led by CEO Rob Wood and CFO James Brotherton, is designe...
Private Placements and FinancingRegulatory Filings and Compliance
Breedon discloses pledge of major shareholding by director-linked entity
Neutral
Oct 5, 2026
Breedon Group plc has disclosed that Abicad Holding Limited, a person closely associated with non-executive director Amit Bhatia, has entered into a security arrangement involving a substantial block of Breedon shares. Abicad has pledged 63,000,00...
Business Operations and StrategyExecutive/Board Changes
Breedon names CFO James Brotherton as next chief executive
Positive
Oct 1, 2026
Breedon Group has announced that current chief financial officer James Brotherton will become group chief executive on 1 January 2027, succeeding Rob Wood, who will retire as an executive director at the end of 2026 after 12 years with the busines...
Regulatory Filings and Compliance
Breedon updates share capital and voting rights following new allotments
Neutral
Sep 30, 2026
Breedon Group plc has confirmed that its issued share capital now comprises 347,103,969 ordinary shares of £0.01 each, all carrying voting rights and with none held in treasury. This updated figure serves as the new denominator for shareholde...
Business Operations and Strategy
Breedon Wins Cross-Party MP Support for Back British Cement Campaign
Positive
Sep 3, 2026
Breedon Group has secured strong cross-party support from UK Members of Parliament for its Back British Cement campaign, which calls for greater government backing of domestic cement production and a workable carbon border adjustment mechanism. Re...
Business Operations and Strategy
Breedon Steps Up Back British Cement Campaign as UK Output Hits Historic Lows
Negative
Aug 11, 2026
Breedon Group has renewed pressure on the UK government through its Back British Cement campaign, arguing that domestic cement producers face structurally higher electricity costs and tougher carbon rules than overseas rivals. The company, which s...
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 ...
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.