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Investing.com - Breedon Group plc, the vertically-integrated construction materials company, lowered its full-year earnings guidance on Thursday as challenging market conditions persisted across its operations in Great Britain, Ireland, and the United States.
The company now expects underlying EBITDA for 2025 to be between £275 million and £280 million, below the previous analyst consensus of £286.9 million.
Revenue for the first ten months of 2025 increased 9% compared to the same period last year, with a 12% rise in the four months to October 31, boosted by acquisitions. However, on a like-for-like basis, revenue decreased 3% in both periods, reflecting subdued demand in residential markets and delays in key infrastructure projects.
The company’s stock fell 1.2% following the announcement, as investors reacted to the reduced guidance.
"Breedon continues to deliver resilient performance despite sustained market challenges," said Rob Wood, Chief Executive Officer. "Our focus on operational and commercial excellence and strategic execution has continued to deliver profitable growth."
The company cited several market headwinds, including subdued demand in Great Britain and U.S. residential markets, compounded by infrastructure project delays in both Great Britain and Ireland. Despite these challenges, Breedon expects to deliver "a further year of profitable growth" and reduce its covenant leverage by year-end.
Looking ahead, the company remains cautiously optimistic about medium-term prospects, pointing to the UK Government’s commitment to infrastructure and housebuilding, as well as increased potential infrastructure investment in the Republic of Ireland through its National Development Plan.
In the U.S., while non-residential and infrastructure markets remain resilient, market growth expectations have moderated. The company noted that its U.S. backlogs are healthy, with significant projects such as the I-70 progressing, though new build residential remains subdued due to affordability constraints.
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