Breedon jumps on results, US acquisition
By Michele Maatouk
Date: Wednesday 05 Mar 2025
(Sharecast News) - Breedon surged on Wednesday as it hailed record underlying full-year results and announced the acquisition of US construction materials and surfacing solutions business Lionmark for $238m (£187m) - a deal which is expected to more than double its US revenue.
Headquartered in Missouri, Lionmark has a focus on road infrastructure end markets. In the 12 months to 30 November 2024, the business recorded unaudited revenue of $246m and unaudited adjusted earnings before interest, tax, depreciation and amortisation of $31m.
Breedon said the deal is expected to be immediately earnings enhancing and will more than double its US revenue, increasing vertical-integration and diversifying its US product offering into asphalt and surfacing.
Andy Arnold, managing director of Breedon US, said: "The acquisition of Lionmark represents a significant milestone in the development of our US business.
"Lionmark is extremely complementary to our existing operations, diversifying BMC's product to supply asphalt and surfacing solutions into an attractive market which is well-positioned for future growth."
News of the acquisition came alongside results for the year to the end of December 2024, which showed that underlying EBITDA rose 11% to £269.9m, "helped by good cost control and operational self-help measures across each of the divisions".
Revenue was 6% higher at £1.58bn, supported by the company's entry into the US and price actions.
Breedon said revenue growth was more weighted to the second half, rising 3% in the first six months and 9% in the second versus the equivalent periods in 2023. The second half benefited from a full contribution from BMC Enterprises, which was acquired last year, and a modest improvement in GB trading conditions compared with 2023.
Chief executive Rob Wood said: "2024 was another successful year for Breedon. We entered the US market, delivered record revenue in the face of challenging conditions, and took care of our people.
"Entering 2025 we have three strong platforms, a first-class team, an abundance of opportunity and our markets are poised for recovery. Our refreshed Breedon 3.0 strategy means that everything we need for success is now in place and I am more excited than ever for our future."
At 0920 GMT, the shares were up 13% at 483.04p.
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