BREE: Aggregates acquisition

研报英文原文证据摘录

BREE: Aggregates acquisition

EQUITY RESEARCH QUICK TAKE

RBC Europe Limited

Anthony Codling (Analyst)

Oliver Dyson (Analyst)

June 9, 2026

Breedon

Aggregates acquisition

LSE: BREE | GBp 275.40 | Outperform | Price Target GBp 425

Sentiment: Positive

Our view

Breedon announced the acquisition of Falling Springs Quarry, a sensible aggregates acquisition in line with the company's US

expansion strategy. The acquisition is earnings enhancing and given the current challenges in the GB market should provide

helpful underpinning to our estimates for FY2026 whilst aiding growth in the US operations this year and in the years to come.

Key highlights

• Description: Falling Springs Quarry is highly automated with limestone reserves of 185 million tons located around 15 minutes

from downtown St Louis, Missouri.

• Enterprise value: $120m (£90m).

• Annual output: currently c.2.2mt pa.

• Deal details: Transaction expected to be immediately margin and earnings enhancing. The deal is funded through Breedon's

existing RCF. Following the acquisition the Group's proforma leverage at 31 December 2025 would have been 2.0x (up from the

reported 1.8x) against a covenant of <3.0x.

No changes to our estimates

We note that the acquisition is expected to be earnings enhancing, however the expected contribution was not disclosed in

today's announcement. We are not changing our estimates today, but believe that the acquisition will further underpin our existing

estimates.

Valuation

At 275p Breedon trades on a FY2026E EV/EBITDA of 5.3x, PER of 9.8x and offers a yield of 5.6%.

All values in GBP unless otherwise noted. Priced as of prior trading day's market close, EST (unless otherwise noted).

Disseminated: Jun 9, 2026 03:32EDT; Produced: Jun 9, 2026 03:32EDT

For Required Non-U.S.