Davy Morning Equity Briefing
Jun 09, 2026
Breedon Group
Third acquisition in the US
Breedon continues to expand its US platform, with Falling Springs Quarry marking its third acquisition in three years. The asset represents a high-quality aggregates bolt-on, strengthening its position in the St. Louis market and enhancing its regional footprint. Acquired for $120m (£90m), the implied valuation of c.10.4x EV/EBITDA suggests a c.$7m contribution in the current year, with the business well positioned to integrate into and support existing operations in the region.
European Building Materials
Growth still forecast for European construction in 2026 but at a slower pace
Euroconstruct is now forecasting that construction volumes in its 19-country network will rise 2% this year, down from the 2.4% growth that had been anticipated. We believe the downward revision is unsurprising in the context of recent developments, namely war in the Middle East, the re-emergence of inflation risk and a change in interest rate expectations. Unfortunately, a lowering of expectations for European construction is not a new phenomenon and underlines how the trading environment for our coverage universe largely remains a struggle.
Bellway plc
Demand moderates in April and May
Demand softened in April and May, with Bellway picking out higher mortgage rates as one of the main drivers. The company notes that it is on track to achieve underlying operating profit of £320-330m in FY 2026 (Davy: £326m) but also remarked that the outlook beyond the current year remains “uncertain”.
