Breedon Group

Website: Breedon Group
Index: FTSE 250
EPIC: BREE
Supersector: Construction and Materials
Sector: Construction and Materials
Subsector: Building Materials and Fixtures
Market Cap: £1.18B
Payout Frequency: Semi-Annual

Next Breedon Group Dividend

Breedon Group next goes ex-dividend on 28/05/2026. This will be the Final dividend for 2026.

The dividend per share amount is 10.2500p (GBP) and the payment date is 10/07/2026.

Key Dividend Details

Total FY2025 dividend: 15.0p per share (up 3% vs 14.5p in FY2024); payout ratio 47% (ahead of through-cycle guidance of c.40%).
Final dividend: 10.25p per share.
Ex-dividend date: 28/05/2026.
Record date: 29/05/2026.
Payment date: 10/07/2026.
Interim dividend (already paid): 4.75p on 07/11/2025.
Dividend Reinvestment Plan (DRIP): last date to elect 19/06/2026.
Indicative 2026 cash dividend cost: ~£55m (company guidance).

Coverage and Financial Support

Earnings cover: Underlying EPS 31.8p (FY2024: 34.4p) vs DPS 15.0p ? c.2.1x covered.
Cash coverage: Free cash flow £133.2m (48% conversion; record post-Covid) vs dividends paid in 2025 of £51.1m ? c.2.6x covered.
Balance sheet/leverage: Net debt £527.3m, Covenant leverage 1.8x (target 1–2x), liquidity > £245m; RCF extended to 2029 and further long-dated USPP issued at low fixed rates.

Dividend Sustainability and Outlook

Sustainability: Dividend is well supported by strong cash generation, comfortable earnings cover, and leverage within target. 2026 dividend cash out (~£55m) appears serviceable against recent FCF even allowing for softer markets.
Growth trajectory: FY2025 DPS up 3% aligns with the stated progressive policy. With underlying EPS down 8% YoY and margins modestly lower, near-term dividend growth is likely to be measured rather than aggressive until volume recovery improves ROIC and EPS.
Capital allocation: Management prioritises organic investment and bolt-on M&A while maintaining a progressive dividend. Guidance implies ongoing capex of £120–130m and higher interest (~£35m in 2026), which may temper the pace of dividend increases but should not threaten the current payout.
Note on cash quality: FY2025 cash flow benefited from £27.1m UK carbon allowance sales (EBITDA benefit £6.0m), a non-recurring tailwind; even excluding this, dividend cash cover remains healthy.

Structural Changes and Policy Signals

M&A: Acquisition of Lionmark (US) in March 2025; bolt-ons in GB and Ireland; Booth Precast completed on 27 Feb 2026. Small equity issuance (2.1m shares) as part of Lionmark consideration; no share consolidation.
Operating model: Shift to a country-based structure from 01/07/2025 to drive efficiencies and responsiveness.
Policy: Board reiterates a progressive dividend. If leverage moves to the lower end of the 1–2x range and deployment options are limited, the Board may consider share buybacks, a supportive signal for total shareholder returns.
Strategic investment: Advancing Peak Cluster and carbon capture at Hope; expected investment of >£20m over three years ahead of FID. Long-term decarbonisation capex could modestly compete with capital returns but is being paced within a disciplined framework.

Risks and Flags Relevant to Dividend Stability

End-market softness: GB volumes declined for a fourth year; like-for-like revenue and EBITDA down. Residential remains weak; infrastructure supportive but timing uneven.
Margins/returns: Underlying EBITDA margin down to 16.3% (-80bps); ROIC 7.8% below the 10% target until volumes recover.
Integration and leverage: Post-acquisition leverage at 1.8x and 2026 interest set to rise (~£35m). US (Lionmark) includes loss-making months Jan–Feb in 2026, which could weigh on H1 earnings.
Input cost/regulatory: Energy and carbon cost volatility; UK/Euro CBAM transition risk; any delay or shortfall in pass-through could pressure cash flows.
One-offs in cash: FY2025 FCF aided by £27.1m surplus carbon allowance sales; not a recurring source.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
03/04/2025	16/05/2025	Final	10.00p	GBX
02/10/2025	07/11/2025	Interim	4.75p	GBX

Total (Annual Dividends Per Share): 14.75p

Dividend Yield = Annual Dividends Per Share (14.75p) ÷ Share Price (336p) = 4.39%

Ex Dividend Date	Payment Date	Type	Amount	Currency
28/05/2026	10/07/2026	Final	10.2500p	GBX
02/10/2025	07/11/2025	Interim	4.75p	GBX
03/04/2025	16/05/2025	Final	10.00p	GBX
26/09/2024	01/11/2024	Interim	4.50p	GBX
04/04/2024	17/05/2024	Final	9.50p	GBX
12/10/2023	10/11/2023	Interim	4.00p	GBX
06/04/2023	05/05/2023	Final	1.40p	GBX
25/08/2022	30/09/2022	Interim	0.70p	GBX
21/04/2022	20/05/2022	Final	1.10p	GBX
12/08/2021	10/09/2021	Interim	0.50p	GBX
12/08/2021	10/09/2021	1st Interim	0.50p	GBX

Year	Interim	Final	Currency	Total	Change
2024	4.500	9.500	GBX	14.000	159.250
2023	4.000	1.400	GBX	5.400	200.000
2022	0.700	1.100	GBX	1.800	260.000
2021	0.500		GBX	0.500

Number of Shares:

Payment	Paid	Amount
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