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:
£1.04B
Payout Frequency: Semi-Annual
Breedon Group Dividend Analysis and Summary
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.
Read more
Breedon Group Annual Dividend Yield - 4.92%
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 (300p)
= 4.92%
Breedon Group Dividend History
| 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 |
|
Breedon Group Dividend Calculator
Breedon Group Dividend Growth
| Dividend Growth (1Y) |
3.45%
|
| Dividend CAGR (5Y) |
–
|
| Years of Growth |
5
|
| Payout Ratio |
61.46%
|
| Buyback Yield |
-0.76%
|
| Shareholder Yield |
4.31%
|
| P/E Ratio (TTM) | 12.4 |
|---|
| Forward P/E | 10.04 |
|---|
| P/FCF | 9.84 |
|---|
| Earnings Yield | 8.05% |
|---|
| FCF Yield | 10.16% |
|---|
| ROE | 7.09% |
|---|
| ROCE | 6.63% |
|---|
| Profit Margin | 4.89% |
|---|
| Operating Margin | 7.67% |
|---|
| Gross Margin | 79.81% |
|---|