Breedon Group Plc (LSE:BREE) shares surged 13% in early trading on Wednesday after the company reported solid 2024 results, issued a confident outlook for 2025, and announced an earnings-enhancing US acquisition.
The construction materials group delivered a 6% rise in revenue to £1.58bn, supported by its expansion into the US.
Underlying EBITDA increased 11% to £269.9m, with margins improving to 17.1%. Despite challenging market conditions in Great Britain, the company’s cost control measures and strong pricing helped offset headwinds.
Breedon also unveiled the $238m (£187m) acquisition of Missouri-based Lionmark, a move expected to more than double its US revenue.
The deal will expand Breedon’s product range in the US and strengthen its position in the country’s growing infrastructure sector. The company expects the acquisition to be immediately earnings-enhancing, with synergies of at least $3m per year by 2027.
Chief executive Rob Wood highlighted the company’s strong trading momentum and strategic positioning. He said enquiry levels remained encouraging, particularly in the US and Ireland, while signs of stabilisation in the UK market offered further optimism.
Breedon also raised its full-year dividend by 7% to 14.5p per share, reflecting confidence in its growth strategy. The company’s M&A pipeline remains active, with further expansion opportunities across all regions.
In early deals, the stock was up 55.5p at 483p.