Breedon sees ‘encouraging’ start to year despite softer residential market

Construction materials giant Breedon Group has delivered a promising first quarter, with positive performances in the US and Ireland helping offset a slower start in Great Britain.

In its trading update, the Derby-headquartered group reported a first quarter in line with expectations, with revenue up five per cent versus the same period in 2025, boosted by contributions from acquisitions Lionmark in the US and Booth in Ireland.

On a like-for-like basis, revenue increased two per cent, with an “encouraging” start in the US and Ireland offsetting a slower beginning in Great Britain.

Ready-mixed concrete volumes in Great Britain were lower amid a “subdued residential market”, though other products showed signs of stabilisation in non-residential sectors.

In Ireland, volumes were “modestly ahead” of last year, while in the US, stable weather supported strong aggregates and concrete sales with activity levels “significantly ahead” as it fed into key infrastructure projects.

Breedon’s layered commodity hedging programme, which spreads purchases of raw materials over time to protect against price spikes, has helped provide cost certainty amid ongoing input volatility.

Bosses said its product pricing has also been adjusted through “contractual escalators” – which automatically link prices to changes in raw material costs – alongside surcharges and targeted increases.

Looking ahead, the group expects residential demand to remain challenging for the rest of 2026, while non-residential markets, its main end-market exposure, are likely to be more resilient.

Chief executive officer, Rob Wood said: “While our first quarter is a relatively small contributor to the year overall, Breedon has seen an encouraging performance in the year to date.

“We have increased our revenue, with volume growth in a number of key product categories, and have made good progress on our strategic objectives, including our operational excellence initiatives.

“Despite elevated uncertainty and a less clear economic outlook, we remain confident in our financial strength and ability to adapt as required to changes in market conditions.”

Recent projects include surfacing the A47 North Tuddenham to Easton, laying 195,000 tonnes of asphalt on the £250 million East Anglia road scheme delivered by Galliford Try for National Highways.

This follows a £3.5 million upgrade to Breedon’s Norfolk plant and the opening of two new waste recovery and recycling sites in Greater Manchester and Norfolk, allowing clean construction and demolition waste to be processed into recycled aggregate.

The expansion enhances Breedon’s support for customers’ circular economy initiatives while helping conserve primary aggregate by promoting material reuse.

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