Construction materials group Breedon Group Plc said on Thursday that trading conditions remained challenging, with subdued demand in Great Britain and the US residential sector compounded by delays to key infrastructure projects in the UK and Ireland.
On a like-for-like basis, revenue fell 3% in both the ten months and four months to 31 October. Including acquisitions, however, revenue rose 9% and 12%, respectively, versus the same periods in 2024.
Breedon stated trading in the UK has seen subdued demand in the year to date and said near-term construction activity expectations had softened, though enquiry levels remained elevated.
In Ireland, deferrals weighed on its performance, though the outlook was supported by the National Development Plan, while in the US, backlogs remained healthy and infrastructure activity in the Midwest was encouraging, despite subdued residential demand and moderating growth expectations.
Breedon stated that it remained on track to deliver another year of profitable growth, guiding to full-year underlying earnings of £275m-£280m and a reduction in covenant leverage.
Chief executive Rob Wood said: "We remain confident in the group's prospects with our key end-markets across each of our geographies standing to benefit from long-term structural growth drivers.
"While there is still uncertainty about the timing of a market recovery, particularly in the UK, we have an excellent team, three leading platforms and a well invested estate. We remain well placed to take advantage of any improvement in construction market activity."
As of 0835 GMT, Breedon shares were down 3.86% at 303.80p.
Reporting by Iain Gilbert at Sharecast.com